Most of us know about residential real estate and investing in it, but not everyone knows a lot about commercial and industrial property. Commercial and industrial property is developed and utilised exclusively for business purposes. There are three main types of business property: retail, office and industrial. Industrial property specialists, like Epping Property, deal with such kind of transactions.
What is Industrial Property?
Industrial property is utilised for industrial purposes. It sounds simple, but it comes in all shapes and sizes and covers an enormous scope of business types.
Industrial properties can, for the most part, be divided into three sizes: small, large and enormous.
Small industrial sites incorporate single or double storey structures zoned for industrial use. These regularly have flexible interior space, for the most part, a blend of warehouse and office space. “Flex” spaces are utilised by small businesses, such as mechanics, research facilities and new businesses.
Large industrial properties incorporate medium to large warehouses and production lines that are designed to manufacture or store goods. They include distribution organisations, such as third-party logistics.
On the larger end of the scale are the ‘big box’ industrial spaces. These huge industrial spaces centre as logistics and distribution centres that hold and afterwards distribute finished goods to stores and directly to end users. If you think about the type of distribution center Amazon would have, you will get the idea.
What are the advantages of investing in industrial real estate?
Investing in industrial property can be great business for the savvy investor. A portion of the key advantages include:
Higher rents = higher yields
One of the attractive aspects of investing in industrial property is the higher rental incomes and yields (the yearly rate of profitability) they offer.
Industrial property is valued on the square meters available and can offer yields of 8%, contrasted with say only 4%-5% on a house.
Another benefit is that most industrial leases include fixed yearly price increase, which is usually linked to CPI.
For more information about industrial properties you can get in touch with Epping Property; Industrial property specialists in Cape Town, their professional staff, will be readily available to help you.