The common characteristic of almost all industrial real estate are categorized as exterior and interior characteristics. Exterior characteristics include docks, doors, truck court, apron, and parking spaces. Interior characteristics include bay, column spacing, clear height, ceiling height, truss, floors, and office spaces.
Industrial real estate is a facility used for research, service, development, storage, production and distribution of goods. It may also include office spaces. There are three major types of industrial real estate.
Major Types of Industrial Real Estate
- Manufacturing – It is a facility for fabrication, conversion and assembly of raw materials to produce products and goods.
- Warehouse – This is a facility used primarily for storage and distribution of materials, goods and merchandise. The distribution building is designed to accommodate a large space for efficient movement of goods. It also has a truck terminal for easy redistribution of goods from one truck to another. The terminal is used for staging loads.
- Flex Building – This facility allows the occupants options for the use of the spaces. They may be used as service center or showrooms. They are usually situated in front of a freeway or a major road.
Factors Driving Industrial Real Estate
- Strong Supply and Demand – Healthy demand and an increasing supply of high quality spaces gives the industrial real estate more benefits. Today, there is a marked increase in the demand of big-box distribution and logistics space. Corporations have triggered a new flow of build-to-suit demand.
- Foreign Capital – The investment market is very ripe for growth. The industrial real estate sector is showing sure sign of confidence as more foreign investors are looking towards its direction. It is expected that more investment will be seen domestically and abroad.
- Global Supply Chain Trends –Companies want to be near their customers to reduce inventory transport and freight costs, improve the speed of products to be delivered to the market, improve customer service and reduce risks. That is why many real properties are now the focus of the industrial real estate sector. They want to construct industrial buildings closer to home.
- Explosion of E-market – This factor triggers the demand for big-box spaces. Retailers are evolving their distribution networks to include e-commerce distribution centers.
- Solid connectivity and infrastructure – Another important factor is the supply chain of connectivity and infrastructure. Highways, ports, airports and railways infrastructure are necessary to bring the raw material to the factory and the products to the market.