Industrial real estate is a sector of commercial real estate that offers practical and efficient space that comes in all shapes and sizes. Uses for these properties include manufacturing and storing goods, logistics and distributions, R&D, labs, showrooms, and telecom buildings.
Investing in an industrial property for sale in Tampa may not be the most glamorous; however, industrial real estate is a unique part of the commercial real estate industry that can be very lucrative for investors. The advantages of investing in an industrial property are below:
High Demand
Investing in industrial properties is becoming increasingly popular among investors.The demand for properties such as fulfillment centers (i.e. Amazon), big-box warehouses, and self-storage facilities withstand market downturns better than other commercial properties.
Long-Term Tenants
Compared to residential properties, industrial tenants typically sign longer leases. Leases can range between three and even up to 10 years. The longer the lease, the more stable the investment for the investor.
Higher Yields
Due to the longer leases, fewer market fluctuations, and less turnover, investors may see a greater ROI. Industrial properties also have higher rental rates which lead to higher yields.
Low Maintenance
Industrial spaces are relatively easy to maintain compared to other commercial spaces. Tenants that lease these types of spaces are typically handy, and unless there is a major issue, they will quickly resolve maintenance issues themselves.
Things to Consider
Although investing in an industrial warehouse for sale in Tampa has many benefits, there are also things you must consider before purchasing. Investing in industrial spaces is expensive and requires bigger deposits and higher interest rates. Do you have the capital to back it? There are times you may experience a vacancy due to market risks or a tenant that moves on. Since it may take some time to find a new tenant, can you handle a loss of revenue until then? While a specialized industrial property is needed in some cases, the more flexible the space, the easier it will be to find a tenant.
The above is just a synopsis of why industrial real estate is so great. If you would like to know more about the many benefits of investing in an industrial warehouse for sale in Tampa, our brokers will be more than happy to assist you.
For more information about Lamm Properties or to discuss an industrial property for sale in Tampa, please contact us today at 813.300.5266 or fill out a contact form.
