Industrial real estate may be outshined by more aesthetic areas of real estate like residential and retail but even so, the industrial asset class has strong ROI potential and should not be ignored as a durable, income-producing agent.
Industrial real estate makes the global economy bustle. Strategically located, highly efficient, well managed and organized industrial real estate operations preserve the functionality of the world’s supply chains, trade and e-commerce. These qualities also guaranty an efficient movement of imports, exports, as well as local, state, and national transfer of goods from manufacturers to the consumer marketplace.
With products constantly on the move to retail stores, businesses, and end users through e-commerce fulfillment channels, distribution centers are places of high activity. Buildings used for manufacturing keep stride with end-user demand, resulting in a modest level of inventory maintained in storage. Just-in-time production and distribution is the core of their operating structure.
Consumption, trade, supply chain reconfiguration and e-commerce are important factors that facilitate the marketplace demand for industrial real estate. As with other stable asset classes, investors seek industrial real estate for reliable cash flow and resilient valuations.