Are you a real estate newbie trying to familiarize terms in the business? Good job! Studying and researching are sure-fire ways to making it big in the real estate industry. In this article, we will talk about one of the three main asset classes of commercial property—that is, the industrial property.
So what is industrial property?
Industrial property refers to an asset that is utilized for industrial purposes.
The next question would be, “Which of the following is considered industrial property?” or “what is considered industrial property?”
An industrial property comes in manifold shapes and sizes, encompassing a wide range of business types. Read more and discover its specifications.
Assets That Are Considered Industrial Property
An industrial property has three classifications: small, medium to large, and enormous.
- Small industrial sites. This covers single- or double-story buildings designed for industrial purposes. Most of the time, the interior spaces are flexible, with a fusion of warehouse and office space. If you know people who own small businesses—say, the mechanics, travel agencies, and other start-up businesses—check if they are using the so-called flex spaces, which is a trend in commercial real estate nowadays.
- Medium to large properties. These include factories and warehouses intended to produce goods. This category also covers distribution companies like third-party logistics.
- Enormous industrial spaces. By the name itself, you can only imagine massive properties. We are talking about industrial sites, such as distribution and logistics companies that supply and deliver finished goods to (wholesale and retail) stores.
Now that you have an overview of the basics, you cannot help but wonder, “When is a traffic impact study needed for an industrial use property in ADA County?”
Traffic impact assessment is crucial before one starts to develop an industrial property in not only ADA County but also anywhere else. This is because you want to know first about the traffic scenarios surrounding your property. Are there many residents within the area? Do public and private vehicles stop by or just pass through? What are the other establishments surrounding your property? These are just a few of the things you want to check.
If you are planning to convert an existing property into an industrial property and attract investors and consumers alike, you have to know what to integrate into your site.
“What can I put into industrial property?” Read further to learn about the must-haves in an industrial property lease.
- Net leases. Industrial property leases are normally set for longer periods. Long-term net leases are easier to handle for the landlord because the tenants’ rental fee can cover major expenditures, such as maintenance and operational costs.
- Expansion rights. This is very important to consider in the contract. Tenants who are looking forward to expanding their businesses should be given expansion rights so they don’t need to move out to another location when their business grows.
- Parking. A parking space, which is another important element to include, will attract potential tenants.