Understanding the Different Types of Industrial Real Estate

There are many different categories of commercial real estate and within those categories, even smaller sub-categories devoted to truly niche markets.  Whether you are looking to purchase commercial real estate for your own use or as an investment property, understanding the different genres is the key to your success in the real estate game.  Industrial real estate is, perhaps, one of the most misunderstood classifications of the commercial market due to the perceived similarities between these types of properties.  There are, however, definitive differences that make one type of industrial property distinctly different from another.

What is Industrial Real Estate?

The term industrial real estate applies to any commercial property (land or building) which is zoned and intended for industrial activities.  Among these tasks may be Manufacturing, Production, Storage, Research, Distribution, and Assembly, to name just a few.  The type of industrial property that you require will be largely dependent on the type of business that you are operating.  Each type has its own set of characteristics that makes it uniquely designed for very specific endeavors, and ending up in the wrong industrial space could make it that much harder to successfully perform at an optimal level.

Getting to Know the Different Types

So, to avoid making the mistake of potentially landing in the wrong type of industrial real estate, let’s take a look at the differences that make these types of property stand apart.

• Warehouses/Distribution Centers: A warehouse building can range anywhere from around 50,000 square feet, all the way up to hundreds of thousands of square feet, depending on the location and the needs of the business occupying it.  These buildings are typically only one story and can be up to 60 feet tall to accommodate the large trucks and equipment that need to be able to move about freely in order to load up inventory to take it to vendors.  Certain warehouse buildings may also offer office space for business operations.
• Refrigeration/Cold Storage: Many food products require access to refrigerators and freezers in order to keep them fresh for human consumption.  This is why cold storage centers are so important.  These buildings can be around the same size as traditional warehouses and will also offer access to the trucks and machinery needed to get the products onto shelves.
• Manufacturing Centers: Also known as heavy industrial buildings, manufacturing centers contain the specialized equipment needed to create materials and goods.  These buildings have access to high capacity electrical power and may also boast floor drains, storage tanks, heavy-duty exhaust and ventilation systems, pressurized water lines, or cranes, to name a few.
• Data Hosting Centers: An entirely different type of industrial real estate, a telecom, or data hosting center, must be located in close proximity to major communication hubs.  It must offer a large power supply that can continually support the considerable number of servers and telecom equipment housed within its walls.  Buildings in this genre will also typically have reinforced floors that are capable of holding the intense weight of the equipment.
• Flex Buildings: Indicated by its name, a flex building is able to support a variety of different industrial business needs within one single building.  While typically smaller than warehouses (with ceilings that are usually 18 feet or below), these spaces may offer room for research and development, office space, showrooms, some room for light warehouse and distribution, or any combination of these things.
• Showroom Buildings: These sites are designed, not only to display goods and materials, but also to store the same goods and materials on-site, making it easy for a consumer to try before they buy.

Which Type is Right for You?

As you can see, there are many different types of industrial real estate to choose from.  Investing in a space that is far too small, far too large, or over or under-equipped to handle the needs of your business can be a big blow to the overall success of your real estate transaction.  Take the time prior to making a decision to sit down and get clear on what exactly your company needs in order to thrive in its new space.  Only you can decide exactly which type of industrial building is the best for you.

Are You Looking for Industrial Real Estate in Hattiesburg or the Surrounding Areas?

When you’re ready to take your search for industrial real estate to the next level, you’ll want to work with a team who understands the nuances of the local market.  For that reason, SVN | Southgate Realty, LLC should be the first call on your list.  There’s a reason that our team has remained a reputable name in the commercial real estate game for the past 37 years!  But, don’t take our word for it; see for yourself by checking out our database of available properties and giving us a call today!