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Property investments are known for being very profitable ideas. The real estate market is always very popular, which means most people get their foot on the ladder by investing in residential properties. You buy a house, rent it out – or flip it for a profit. These ideas are proven to work, but there’s a type of property investment that you’ve been neglecting the whole time…
Yes, as the title suggests, we’re talking about industrial buildings. Now, this relates to any buildings that have been built for industrial purposes – this could include warehouses, factories, etc. If you have a look around, you can find many places for sale. Some of these buildings are run down and haven’t been used for years, while others might be relatively new. Either way, why should you be interested in investing in industrial properties?
Excellent rental potential
The rental potential for industrial properties is fantastic. So many businesses are being started these days, but there’s only a finite number of properties available for companies to set up shop. If you’ve invested in a warehouse or factory, you can easily rent this out to some businesses. Not only that, but the size of some industrial properties could mean you’re able to house more than one tenant at the same time, doubling your rental income. Businesses will rarely purchase their own industrial properties, which is why you will have no trouble finding companies that are keen to rent out your place.
Plus, the rental rates for industrial units will usually be a lot higher than the rental rates of a residential home or apartment. This is because you are doing business with an organization, rather than an individual. As such, you can charge more because the company can be expected to pay more.
Perhaps the main reason to consider investing in industrial properties is that they are being used more and more for apartment conversions. Have you heard of loft apartments? Effectively, these are apartments that have been developed from converted industrial units. Where once a factory lay, there is now a collection of luxury apartments.
For whatever reason, people love apartments like these. Consequently, you can easily invest in industrial real estate, then convert it to residential apartments. Here, you benefit from having one unit that can easily be made into multiple apartments, generating rent from each of them. Plus, the best conversions are made in rundown industrial units, which tend to be a lot cheaper and more affordable for you to invest in. Thus, you can make a sizeable profit through this investment.
The whole purpose of this post is to open your eyes to the possibilities that exist beyond traditional real estate investments. By all means, residential investments are still extremely beneficial and profitable. But, perhaps it’s a good idea to diversify your property portfolio with some alternative investment opportunities? Looking at the industrial property market can be a fantastic idea as the rental potential is very high, and you can convert and renovate these properties for the residential market as well.
Just make sure you use the best commercial real estate firm for the most reputable investment, so that you can see the best properties, gain the best deals, and even liaise with further property management from there.