Industrial real estate is having a moment — and it’s no wonder why. With the rise of e-commerce, logistics, and last-mile delivery, demand for warehouses and distribution centers has surged. But not all industrial assets are created equal. Here’s what savvy investors should consider when evaluating industrial properties.
1. Location & Accessibility
Proximity to major highways, airports, and ports is essential. Tenants want convenience, and location directly impacts transportation costs and delivery times. Properties near urban centers with high population density are especially in demand for last-mile delivery.
2. Building Specs Matter
- Clear Height: High ceilings (24–36 ft.) allow for better vertical storage.
- Dock Doors: More loading docks mean higher throughput capacity.
- Floor Load Capacity: Especially important for heavy equipment and storage.
3. Tenant Durability & Lease Structure
Is there a long-term lease in place? What’s the tenant’s financial stability? Look for NNN (Triple Net Leases), which shift most operational costs to the tenant, reducing landlord risk.
4. Zoning & Environmental Considerations
Always confirm zoning compliance and conduct environmental assessments. Older industrial sites may come with soil contamination or hazardous materials risks.
5. Expansion Potential
Can the building be expanded or subdivided in the future? Flexibility adds long-term value and allows for changing tenant demands.
Final Thought:
Industrial real estate can be one of the most profitable segments of the commercial market. With the right property and lease terms, it offers stable income and long-term appreciation. At Rise Commercial, we help clients evaluate industrial opportunities with precision and confidence.