Within the real estate industry, industrial real estate stands out as a lucrative sector. Offering many possibilities for investors, businesses, and professionals, industrial real estate comprises a wide range of opportunities. In this blog, Basis Industrial breaks down the world of industrial real estate and notes its significance within the real estate industry, the potential of industrial real estate for sale, and gaining a deeper understanding of this unique asset class.
- What is Industrial Real Estate? Industrial real estate refers to properties specifically designed and utilized for industrial purposes. This segment covers a broad spectrum of assets, including warehouses, manufacturing facilities, self-storage facilities, distribution centers, research, and development complexes and more. When you think of industrial real estate, envision vast warehouses, manufacturing facilities, factories, and industrial parks that are buzzing with activity. Understanding the distinct characteristics and functionalities of industrial real estate is essential for grasping its role within the broader real estate industry.
- Industrial Real Estate: The real estate industry thrives on diversity, with various sectors contributing to its overall growth. Industrial real estate plays a pivotal role for a wide array of businesses. From supporting supply chains to facilitating production and storage, industrial real estate is an important component of economic activities, making it an integral part of the real estate industry.
- Exploring Opportunities in Industrial Real Estate for Sale: Industrial real estate offers compelling investment prospects for individuals and organizations seeking to capitalize on this flourishing sector. Opportunities to acquire industrial properties for sale abound, presenting avenues for long-term returns and wealth accumulation. Factors such as location, infrastructure, market demand, and lease terms influence the attractiveness and profitability potential of industrial real estate investments.
- Industry Real Estate: Navigating the industrial real estate market requires a deep understanding and specialized knowledge to guide potential clients to the right type of property for their specific needs. As industry experts, Basis Industrial offers valuable insights into market trends, rental and vacancy rates, property valuations, investment opportunities, and can easily facilitate transactions between buyers and sellers.
- What makes Industrial Real Estate unique? To fully comprehend the potential of industrial real estate, it is crucial to understand its unique attributes. Unlike other segments of the real estate industry, industrial real estate focuses on functionality and efficiency. These properties often feature high ceilings, wide open floor plans, loading docks, drive-in doors, ample parking and sometimes even rail or port access. They are strategically located near transportation hubs, major highways, and key logistical routes to facilitate the seamless movement of goods and materials. These distinct characteristics contribute to the resilience and growth potential of industrial real estate as an asset class.
Another area within Industrial Real Estate is Multi-tenant industrial. Multi-tenant industrial real estate refers to industrial properties that are divided into multiple rental units or suites, each occupied by different tenants. In this area of real estate, a single building or complex is designed and constructed to accommodate multiple tenants, often with separate entrances, utilities, and amenities for each space. The primary purpose of multi-tenant industrial real estate is to provide flexible and customizable space for a variety of industrial businesses. By sharing a common facility, tenants can benefit from reduced costs compared to leasing or owning an entire standalone property.
Industrial real estate plays a critical role in supporting various sectors of the economy, including manufacturing, e-commerce, retail, and logistics. It serves as a critical link in the supply chain, enabling businesses to store, process and distribute products efficiently.
In recent years, industrial real estate has experienced significant growth due to the rise of e-commerce and the increasing demand for faster shipping and fulfillment services. As more consumers turn to online shopping, businesses require larger and strategically located industrial spaces to house their inventory and meet the growing expectations for quick delivery.
Additionally, the rising demand for self-storage facilities is another lucrative segment within real estate presenting an attractive investment opportunity for businesses. The self-storage sector is resilient and has outperformed the other major sectors in terms of both annualized returns and annual volatility for over 20 years. Basis Industrial has deep roots in the self-storage sector and is actively growing its portfolio.
Basis Industrial uses its subsidiary management company, BaySpace, to manage the company’s industrial assets. BaySpace now has over 20 employees and manages all 2 million square feet Basis has acquired.
With the flexibility to adapt to changing commercial practices, support e-commerce operations, facilitate market expansion, and ensure business continuity, self-storage facilities offer numerous advantages. Businesses in the industrial real estate sector, including Basis Industrial, leverage expertise to capitalize on this growing trend and create value through active asset management in the self-storage sector.
Industrial real estate stands as a captivating and vibrant sector within the real estate industry, offering a multitude of opportunities for investors, businesses, and professionals. It provides the infrastructure and operational support necessary for industries to thrive. Industrial real estate serves as the backbone of industrial activities, driving economic growth, and facilitating the smooth functioning of supply chains in today’s fast-paced and interconnected world.
About Basis Industrial
Basis Industrial is a vertically integrated real estate owner and operator formed by industry veterans and sponsors Jay Massirman, Stephen Garchik and Daniel Weinstein. Basis brought Anthony Scavo on as COO/President to run day-to-day activities of the company. Together, they have over 100 years of combined Real Estate Development and Management experience. It has deep roots in the self-storage and industrial sectors. Basis currently owns over 2.5 million square feet of self-storage and industrial real estate and is scheduled to close another 1 million square feet in 2023. Active markets for Basis include South Florida, Pennsylvania, New Jersey, New York, Texas, Boston, Los Angeles and select urban markets nationwide. In total, the sponsors have developed and managed over 13.5 million square feet of real estate assets including self-storage, industrial, retail, office and residential. BaySpace is the property management arm of Basis. For more information, visit www.basisindustrial.com or www.bayspace.com.