Investors can find tons of upside in industrial real estate. However, the sector is more complex than other commercial sectors. Industrial real estate properties are subject to tighter regulations and stricter zoning rules.

There are also different types of industrial real estate, and some are better for investing than others. This two-part post will explore various types of industrial properties.

4 Types of Industrial Real Estate Properties

Manufacturing Facilities

Manufacturing is an industrial sector covering the production of goods and materials. It could be a range of goods covering everything from automobiles and airplanes to chemicals and textiles. Beyond the different goods they might produce, you have the difference between heavy and light manufacturing. Heavy manufacturing is often on a large industrial complex spanning tens of thousands or hundreds of thousands of square feet. Light manufacturing tends to be in smaller facilities with lower capital expenditures.

General Warehouses

A general warehouse is what most people think of when warehouses come to mind. It is a large storage building for goods or materials. In the case of a general warehouse, you are often looking at goods that do not have specific storage requirements. They can vary in size depending on the needs of the owner/tenant. General warehouses are often for storing goods in a broader distribution network.

Distribution Centers

A distribution center is a type of warehouse in a logistics network. Goods may be sent from a general warehouse to a distribution center as part of a supply chain. Freight arrives at the distribution center, and staff sorts it by where it goes. The chain might take it to a client, delivery center, or another logistics facility from there.

Data Centers

Data centers are becoming a more common type of industrial property. They are often large facilities that resemble warehouses. Data centers are critical in making much of the modern IT industry go. It could be a server farm housing the computing power of a large business. Cloud storage is another common purpose for data centers. Many of these facilities exceed 100,000 square feet and consume an immense amount of electricity.

The industrial real estate sector is diverse, with many different types of properties. This post covered four of the most common types of industrial properties. Come back for part two to learn about another four types of industrial real estate properties.

Are you looking to invest in industrial real estate in the Columbus, GA, area? Click here to contact the Cummings Commercial Team. We are local CRE experts dedicated to helping our clients achieve their goals.

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