Industrial Real Estate can generally be described as all the land and buildings that are primarily used for industrial activities such as production, manufacturing, assemble, warehousing, research, distribution, and storage. Investing in real estate properties that are designed especially for industrial use can have a lot of benefits in the long term, given that these facilities operate on a long term leases basis and offer much higher returns than commercial or residential properties.
Types of Industrial Properties
There are a number of different industrial properties that investors can considering taking up for themselves. Each property type offers different yields and requires different managerial work. Within industrial properties, you can find warehouse and distribution buildings, industrial land, flex buildings, factory units, and refrigeration and cold storage. Investing in any one of these properties can have a lot of advantages for investors, especially when the commercial and housing real estate in not doing do well.
When it comes to the returns acquired from investment properties, the yield from industrial investment properties is significantly larger than residential and commercial ones. In general, the value of an industrial property increases by a margin of at least 7-10% on a yearly basis, which allows for faster recovery of initially investment amount and increased profit margins for the owner/investor.
Long Term Leasing
Another significant advantage of industrial properties is the fact that all leasing and investments for land and factories are done for a long period of time. Since renting land for industrial purposes can only yield fruit when the factory is up and running, short term leasing would be pointless. The shortest amount of lease period of a factory is about three years.
Another advantage of investing in industrial properties is the fact that all of the major financial outgoing are to be met by the tenant. All of the taxes on the land, and rates like council rate, water rate, land tax and management fee are all to be paid by the tenant. Since all of these responsibilities are removed from the investor, their cash flow is significantly increased.
If you are looking to invest in a manufacturing facility in Sacramento, you should check out the facilities listed by Bluemont Properties. They are a full-service real estate company, whose manager has over thirty years of experience in the real estate business. Bluemont Properties deals with asset management, distressed properties ‘turnaround’ development, consulting services for retail, office, industrial, residential, and missed use properties. Bluemont Properties offers extensive leasing and marketing services for property owners, for all types of income-producing properties such as office, industrial and retail buildings. They even offer long-term asset management services that develop comprehensive business plans and guarantee proper return on investments. For all of your industrial facility Sacramento needs, reach out to Benjamin S. Catlin, whose expertise in real estate is sure to benefits your business ventures.