Industrial Real Estate: What’s the Best Time to Invest?

 

During my real estate career of nearly 30 years, I have learned that the real estate marketplace is a very dynamic arena, and not all sectors mirror other sectors. When one is struggling, another one may be booming. Reisman Realty monitors the overall real estate marketplace but, additionally and perhaps more importantly, we carefully research, monitor and analyze industry trend lines by specific real estate market sectors. Since we are involved in both residential and commercial properties, this gives us a unique perspective on the overall trends.

One market sector enjoying significant growth is industrial real estate. This refers to properties that are used for industrial purposes. Industrial real estate includes properties that house manufacturing enterprises, handle the production and distribution of products, contain research and development operations or serve as large-scale storage facilities. With the huge growth of e-commerce in the past 10 years, this sector has received the fastest growth. Buildings and facilities that handle e-commerce distribution needs, like Amazon’s fulfillment centers, are springing up in most metropolitan areas.

We have always liked this sector’s growth and its reliable potential. When retail real estate declines as it mirrors the general economy, the industrial sector is less affected, because so many of the basic needs of a population will always be present, so this sector is a little more deflation resistant. Compare this to major retail stores which are being ignored as more and more people shop on line. We believe that the continued expansion of e-commerce and the demand for fast delivery is the most important driving force behind this upward trend, and we feel this will still demonstrate significant growth well into the future. It is only reasonable to expect that industrial real estate will grow right alongside it.

If investment in this market segment is done properly, it has the potential to greatly enhance your investment results, both in rental income and overall equity growth and value. We can assist in helping you become more familiar with industrial and warehouse properties. Because of the sheer magnitude, complexity and unique nature of many industrial real estate transactions, our advice is to work with someone you trust to be aware of the myriads of details essential for success in this market. We have first hand experience because we personally own a number of industrial and warehouse properties in the Phoenix metroplex, and we are thrilled with them. We are intimately familiar with this geographical area.

If you are the kind of real estate investor who is looking for long-term growth potential, we urge you to give industrial real estate a long, close look. We don’t think you will be disappointed.