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Real Estate Investment Software Blog

Warehouse and industrial buildings are discussed together as two types of real estate investments because they typically are found in industrial zone locations or industrial parks. Other than that, however, they are not that similar.

In this article, we want to touch on the aspects of warehouse and industrial buildings from a real estate investing point of view.

Warehouses

Rental warehouses are usually divided into bays or rooms ranging in size from less than 100 square feet to over several thousand. The small storage bays used generally for personal belongings and the larger bays for such things as small workshops, manufacturing facilities or wholesale sales outlets. As a real estate investment, it should be noted that tenant stability in the small spaces is probably the worst of all real estate investments because they usually rent on a month-to-month basis and move out at any time. Having said that, however, if you’re in an area where this type of facility is in high demand it may be a very good real estate investing opportunity. So don’t pass on an opportunity to evaluate the numbers (at least).

Industrial Buildings

A building leased to a major industrial or manufacturing company makes an excellent investment because they are large spaces generally leased on longer terms to more stable tenants such as manufacturing plants who need additional warehouse or manufacturing space. Moreover, the tenant usually pays for everything, including maintenance, taxes, insurance and utilities.

If you’re a real estate investor, you might want to consider these types of real estate investment. With any real estate investing, however, remember that one size does not fit all. Whereas a warehouse may be a profitable real estate investment in one area, it might not be that profitable in another area. As always, any real estate investing opportunity relies on the numbers. Be sure to evaluate all the numbers before you buy any investment real estate.