What About Industrial Real Estate?

Industrial real estate entails a lot but in a nutshell, industrial real estate refers to land and buildings which accommodate industrial activities including production, manufacturing assembly, warehousing, storage and distribution.

Just like any other type of real estate commercial property, location is also very vital in industrial real estate. But in industrial real estate, logistics also plays a vital role. For example, if you own a food processing industry you may be located at the best location but not taking into account the distance it would take the farmers to reach your place, the traffic on the road would prove detrimental in some way to your business. Therefore, when it comes to industrial real estate logistics should be considered.

When it comes to attracting investors, many local and foreign investors are now moving towards investing in industrial real estate because industrial real estate brings a higher return on investment compared to other types of real estate. That is why even foreign investors like China, Japan and Germany are turning more and more towards investing in industrial real estate.

So, why has real estate grown over the years? In the recent past, there has been growing use of robotics in manufacturing and processing in many industries. Work that was previously done by people is computerized and being operated by robots, therefore, making the work run more efficiently and the productivity levels are also at an optimum. High efficiency and productivity yield good returns on investments, therefore, making many people turn towards industrial investments.

The question, many then will ask, is why invest in industrial real estate? Comparing industrial real estate to maybe commercial/ residential real estate, industrial real estate can easily be found and they are less stressful compared to residential real estate which requires high maintenance.

This is just a short summary of what industrial real estate entails and from this it is clear that investing in industrial real estate would be very beneficial to you as an investor. 

-Edited by Emomeri Maryanne