The same questions seem to arise around Industrial Property opportunities. A sought after industrial property with a long term lease has the potential to provide great returns, positive cash flow and capital growth that can build intergenerational wealth for you and your family.
When it comes to investing or purchasing an industrial property, a strategic way to manage the downside risk is by making sure the property ideally covers off as many of these key features as is possible.
So, what are the key attributes for a rock solid industrial property? Number one is strategic location. That’s the proximity to major arterial roads and transport links, which is key. Number two is the local area demographics. Having a strong blue collar workforce in the area surrounding that property is helpful. Number three is the construction type. Typically, industrial buildings are constructed of concrete tilt-panel, metal clad, or Datto construction with each construction type appealling to different businesses. The fourth is volumetric storage. Excellent internal clearance gives the tenant options for high volumetric storage and room for growth. High internal roof height will attract a larger tenant pool to your property. The fifth is site accessibility and hardstand. That’s the ability or trucks and larger vehicles to access the site and drop containers and load and unload.
These are the key factors at a higher level. However, there are many micro factors specific to your property and your wealth strategy. Ultimately, it’s about finding properties that make it easy and straightforward for your ideal tenant to lease the building over and over and over again.