Industrial real estate investment

What is industrial real estate?

Industrial Real Estate can be broadly defined as those properties which accommodate industrial activities including production, manufacturing, assembly, warehousing, research, storage and distribution of goods.

There are specific areas zoned in cities designated to industrial real estate, which controls where these spaces can be constructed and operate. This is to make sure that the site’s activity does not disrupt businesses or residences that might have otherwise been placed nearby – in effect cordoning off industrial activity from residential and commercial offices.

The location of industrial property is highly influential on the success metrics of a business located there due to its impact on overheads, production and distribution. With the increasing influence of e-commerce and change in customer expectations, such as same day delivery, it is becoming even more important for logistics users to strategically locate their hubs closer to more densely populated areas.