A particular offshoot of commercial property, industrial acquisition involves purchasing warehouses of varying sizes from a double story building inclusive of office to a huge logistics warehouse used for e-commerce distribution eg Amazon. The ‘warehouse’ space could involve a mechanic outlet, production line or a laboratory.
This type of property investment involves higher yields and rental income than residential property or even standard commercial. There is consistency too in that leases tend to be longer (an average of around 10 years). In addition, maintenance and repair costs will usually be met by whoever is renting the property since they will want them done immediately since it’s a reflection of their own business.
Like retail and other forms of commercial property, industrial property is subject to the economic climate. Borrowing for this type of venture can be more expensive but again, because of size, can prove attractive for group investment.