The rapidly changing landscape of industrial real estate is one to watch for advocates and experts. As the economy continues to expand, additional jobs are needed and available.
As more people enter the workforce and take advantage of new jobs and new income streams, homes are a valuable resource. Home values increase when people buy into a community and purchase quality equipment and supplies for construction projects.
Home values also rise when projects generate cash flow from project fees and/or sale of equipment or property. Even if a project does not make a profit, it still benefits the community by being there.
Home values also rise when projects generate cash flow from project fees and/or sale of equipment or property. Even if a project does not make a profit, it still benefits the community by being there.
Rising rents across key markets
With growing demand for industrial real estate, developers are forced to charge higher rates to occupy space. This is a great opportunity for savvy developers to make a hefty profit by charging higher fees.
In recent years, rents have risen rapidly across the board. In October 2016, the average cost for a studio apartment was $1,100 per month, according to Cushman & Wakefield. This price tag has increased by about $100 over the past year alone!
Some of the top markets that see high costs for studios are Chicago, New York City, and San Francisco. If you are interested in earning some extra money working as a interior decorator or starting your own interior design business, then these cities have you covered.
As costs rise, quality of life goes down which hurts sales and increases rent income.
Changing industry mix in some areas
As the digital age continues to transform every field in society, real estate is no exception. The influence of the internet, technology, and business trends continue to impact the industry as well as new opportunities and challenges.
With the emergence of finance-based organizations that provide funding for projects, there is more interest in industrial real estate. Due to its nature being expensive and long-term, funding for projects is more common now than it was a few years ago.
Another trend Industrial Real Estate is facing is a decline in demand. Due to advances in technology and investment guidance that are available online, people are more prepared to invest in industrial real estate.
demand: The demand for industrial space has been declining for years due to cost factor and lack of interest from developers. However, with the rise of new construction projects using advanced technology and investment guidance available online, this area will continue to grow into a significant stronghold.
Growth in industrial robotics
A rapidly increasing field is industrial robotics, or AI-enabled machines. There are many ways for a business to invest in this field today, as there are already many applications such as warehouse robots, stock/ventory management applications, and even human intelligence systems such as natural language processing (NLP) and machine learning (ML).
Most applications of robotics today require human intervention for maintenance, packing, and even ordering. This adds cost to the application and increases overhead. However, with the advance of technology and new software techniques, we are seeing companies award themselves higher positions in the market by having a single robot that covers all duties.
If a company has to have a human in front of the machine for maintenance, then it will cost more to maintain.
Rising interest in industrial real estate
Interest in industrial real estate is increasing, especially for operators looking to expand their portfolio. Today, industrial real estate is in high demand and sought-after by companies looking to expand their facility footprint.
Today, there are more opportunities to rent space than ever before. Companies large and small are finding efficiency spaces that can easily be moved around, updated and / or incubated.
This has become a critical need for companies as the digital age moves forward and our reliance on machinery becomes greater and greater. For companies to maintain their competitiveness, they must have a reliable space hub!
It is important to note that this interest in industrial space is not going away. It is just becoming more visible and accessible due to the rise of the internet channel and availability of properties via apps like Leasewire, Redfin & Co., & Propertyinderivate.
Potential opportunities for investors include: Blvd
industrial real estate, logistics centers, and distribution warehouses. These locations are typically located in strategic positions in regards to transportation chains, jobsites, and customers.
Investors can look toward speculate or purchase properties as they increase in value. When properties increase in value, the owner will usually charge a fee to rent it out. This is a way for him or her to make money off of it while it is being used.
Industrial real estate has become a lucrative source of income for investors. Prices have risen recently due to increased demand from the industry caused by technology that allows people to transfer data quickly.
Potential opportunities for investors include: near major transportation hubs
close to commercial and industrial parks, mixed-used districts are beginning to emerge that combine residential and retail components
A mixed-used district may include a commercial center, housing, and/or open space making it a attractive place to live and work. It is typically located in a safer area close to education and transportation nodes.
With the growing demand for high-quality industrial real estate, investors are being drawn to the market. According to DataQuick Research, there were 591 active industrial properties in the United States as of October 2018. This number is on track to increase by about 25% over the next year due in part to increased leasing activity.
Investors can now find approximately 90% of U.S. land uses being used for industry, making it an increasingly sought-after property type.
Limited supply of properties available for purchase
As the age of connectivity increases, more people are finding property available for purchase online, in person, and in the community through smaller-scale real estate markets.
This increased availability of property has several effects on the industrial real estate market. First, it decreases the demand for properties at higher levels of value. Second, it creates more competition between properties owners, which increases quality and quality assurance.
Third, it decreases the amount of money needed to buy a property, which increases peoples’ choices and opportunities to buy industrial property. Fourth, it reduces the need for highly motivated individuals or companies to enter the market to buy industrial property, making it even more attractive.
Being able to access quality properties that are in good locations is key to having an ample supply of quality Industrial Real Estate.
Potential lease options available to investors
Recent changes to the landscape of industrial real estate are indicative of a growing need for space in today’s market. As community-based, worker-owned cooperatives continue to gain popularity and mature, they provide valuable space for investment.
These spaces are often located in highly-utilized locations with long-term stability as a feature. They also offer quality of life benefits such as lower crime rates and livable communities that thrive on natural sunlight and natural light distribution.
Many new industrial spaces are being created as a result of the Internet of Things (IoT) and new technology trends. These spaces can serve both private and public entities, depending on what needs they need met.
Private entities looking for additional space can contact cooperative properties for assistance in becoming members.
