Industrial real estate has played a vital role in the global economy since the Industrial Revolution began
in the 1750s. Nearly every item we use today - furniture, appliances, clothing, cleaning supplies, beauty
products, even the food we eat - is produced, stored or shipped through an industrial building. The land
and buildings where goods are produced, manufactured, assembled, stored and distributed make up the
industrial real estate industry.
Several factors are driving the demand for industrial real estate, making it a substantial investment opportunity. The rise of robotics in manufacturing has automated processes and greatly reduced labor costs. The shift toward eCommerce has changed the face of our economy and generated a huge need for warehouse and shipping space.
Because most cities limit the construction and operations of industry to zoned areas to avoid it disrupting residences and communities, understanding local zoning laws is critical for investors. In many cases, the zoning regulations even dictate where specific types of industrial activities can take place. It’s also important to consider what class a building is rated and which is most appropriate for your business needs.
Coldwell Banker Commercial® affiliated professionals offer expertise in all aspects of industrial real estate and can provide comprehensive services to help you meet your business goals.
Facilities where goods are produced and assembled share several things in common, including open space
that can be converted for different uses, a small amount of office space and loading docks. The most
well-known type is heavy manufacturing facilities, which are found in areas zoned for industrial usage due
to their need for heavy machinery, chemicals and increased power usage. Because these properties require a
great deal of customization to for the user’s specific requirements, they are often occupied for the long
term because of the logistics and cost involved in moving the facilities.
Light assembly manufacturing facilities are similar to flex warehouse spaces and do not typically house heavy machinery. They often are used for assembling products, storing and shipping them, and can be easily converted for storage and office space.
The need for warehouses has rapidly grown over the past ten years with the rise of eCommerce. Bulk
warehouses are used for regional distribution sites, and often, require 50,000 to 1 million square feet of
space. They are usually located outside of metropolitan areas where land is less expensive and trucks have
easy access to highways.
At the other end of the spectrum are flex warehouses, which are much smaller and used for more localized businesses such as cabinet makers, brewers and small manufacturers. Found in metropolitan, suburban and rural areas, flex warehouses often include a small amount of office space as well as shipping docks and loading areas. Due to the size, price point and demand, these are often a good entry-level opportunity for investors.
Flex properties can be used for a variety of purposes, from Research and Development (R&D) to data centers and showrooms. R&D tenants engage in work to develop new products or improve existing ones and are often located near a business’s manufacturing facilities or home office. Data centers house the computer equipment needed to keep the internet and software systems running and for cloud storage. While showrooms include space to showcase products along with warehouse and office space.
Coldwell Banker Commercial affiliated professionals know the local
zoning laws and commercial properties in each town and which areas best accommodate the needs of specific
industries. That industry knowledge helps us anticipate changing warehousing and distribution requirements
and makes us well-positioned to perfectly match you with your ideal commercial properties without wasting
your time on properties that aren’t a good fit.
CBC affiliated professionals look beyond just finding you the right industrial space for rent or sale. They can help with project implementation programs, out-of-the-box and custom solutions for your real estate needs, and other solutions. Our goal is to help you add value to your bottom line, improve your company’s efficiency and grow its profits.
If you are seeking industrial or warehouse space for rent or purchase, contact the team at Coldwell Banker Commercial for knowledgeable and attentive help, nationally and internationally. No matter where you are located and where you wish to secure property, our knowledgeable experts can create a personalized approach to land you the most suitable industrial real estate at the right price.
Look to the Coldwell Banker Commercial network to assist with all your industrial real estate needs. Our services include:
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trends and industry news from Coldwell Banker Commercial.
Previous segments of this blog series touched on the disconnect between workers and employers, the shifting priorities and values of the general workforce and the role management and leadership plays in DEI initiatives. In this final installment, we dive into what it will take for savvy companies to position themselves for success.
In a reversal from sentiment at the beginning of this year, investors are becoming increasingly bearish about the commercial real estate market. Faced with an economic slowdown, inflation, rising interest rates, supply chain issues, labor shortages and the threat of a recession, investors and capital providers to take a step back and reassess their strategies as this year concludes and the next begins.
Commercial real estate activity remains elevated in 2022, which is a promising sign considering record-highs were reached last year. Market activity is being paced by three property types, multifamily, industrial, as well as a strong rebound in retail. A new Mid-Year Report from Coldwell Banker Commercial shows investors were eager to unlock cash flow and pushed cap rates to record-lows in 4Q21 and 1Q22 across most sectors. It is anticipated that demand for real estate will continue to be strong for high-growth markets. These positive signs comes despite widespread supply chain disruptions, inflation and political uncertainty around the war in Ukraine.
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Multifamily residential properties can be a lucrative investment and provide a stable long-term income opportunity. With deep connections across the industry and in local communities, your CBC affiliated professional can open the door to potential investors and tenants.
Whether your business needs to lease or sublease office space or acquire or sell an office building, Coldwell Banker Commercial affiliated professionals can develop a customized solution tailored to your specific goals.
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When you work with a Coldwell Banker Commercial affiliated professional who specializes in land, you will receive valuable guidance on available properties with insights into the market, upcoming projects, local zoning and restrictions that could impact your investment.