Are you in the market to finance/purchase an industrial property but aren’t sure the differences between the types of properties? Here we describe the eight major industrial property types:
1. Warehouse/Distribution Buildings
These buildings range from 50,000 to hundreds of thousands of square feet in one single-story structure used mainly for warehousing and distributing business inventory. They also have up to 60-foot ceilings, as well as numerous loading docks, truck doors, and large parking lots to accommodate semi-trailers. They may have a small amount of office space and may be served by rail cars.
2. Manufacturing Buildings (aka heavy industrial buildings)
These facilities are intended to house specialized equipment used to produce goods or materials. They typically have three-phase high capacity, electric power, these properties might also include heavy ductwork, pressurized air or water lines, buss ducts, high capacity ventilation and exhaust systems, floor drains, storage tanks and cranes.
3. Refrigeration/Cold Storage Buildings
These specialized industrial properties are equipped to hold a large capacity of cold storage and/or freezer space, and are typically used a distribution center for food products.
4. Telecom/Data Hosting Centers (aka Switching Centers, Cyber Centers, Web Hosting Facilities, Telecom Centers)
These highly specialized industrial buildings are located close to major communications trunk lines to allow for access to an extremely large and redundant power supply capable of powering extensive computer servers and telecom switching equipment. They typically have reinforced floor slabs to support the weight of the equipment, as well as backup generators and specialized HVAC.
5. Flex Buildings
This building type is capable of housing wide range of uses, typically more than one in a single facility, including office space, research and development, showroom retail sales, light manufacturing research and development, and even small warehouse and distribution uses. They typically feature lower ceilings (under 18 feet) and a higher amount of office space than other industrial property types.
6. Light Manufacturing Buildings
Light manufacturing that doesn’t require extensive physical plant and space requirements typically provided by heave industrial buildings can take place in flex buildings.
7. R&D Buildings
High technology industries, such as computers, electronics, and biotechnology, prefer flex buildings because they offer a wide range of uses in one location, including office, manufacturing, and warehouse space. Nowadays, many of these spaces are converted to campus-like business parks with landscaping, shared architecture design, and lots of surface parking and open space.
8. Showroom Buildings
Showroom buildings combine retail display space with extensive onsite storage and distribution. These buildings typically include up to 50% of space dedicated to sales.
This update is provided to you by Park West Capital. With over a decade experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 800-969-4901 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.