differentiate between the three types of industrial properties
Answers
1. Industrial Real Estate – Where Goods Are Produced
Industrial property typically consists of real estate that is set aside for production, manufacturing and warehousing purposes. Usually, goods are produced there. However, construction sites themselves can also be considered industrial property. Industrial sites are usually located on the outskirts of urban areas, and they are not accessible by the public without permission or an escort.
2. Commercial Real Estate – Where Goods Are Sold
Commercial property, on the other hand, is frequently visited by the public. That’s because this real estate usually consists of retail shops, restaurants and offices that depend upon foot traffic as one means of acquiring new business. More effort tends to be focused on making commercial areas attractive, as this is believed to encourage people to patronize these businesses. Moreover, commercial properties tend to be centrally located.
3. Investment Pros and Cons
Whether you decide to invest in industrial or commercial buildings, you’ll encounter pros and cons. Industrial sites are typically restricted to a single tenant, and because the areas are so specialized, it can be hard to find a new occupier. Accordingly, if you want to switch from one use to another, you can expect to pay a hefty price. Still, industrial property can make for long, valuable leases and initial investments are relatively small.