The Origin of Industrial Real Estate
In the 18th century (1700s) the inaugural Industrial Revolution was ushered in with amazing innovations that shaped and progressively expanded the technological, socioeconomic and cultural evolution that has produced our modern-day society.
Prior to the 18th century industrial invention boom, goods and materials were made and produced mainly by hand with the assistance of animal labor (e.g., horses and mules). These perishable goods and materials were predominantly sold locally and stored for quick fulfillment because long distance transport by wagons produced spoilage. Transportation of perishable goods became feasible as innovators began to address issues, improving the way in which goods and materials were produced, stored, and transported.
From handmade goods sold locally and animal labor to machinery and ultimately manufacturing, the growth of eclectic innovation gave way to today’s improved transportation methods; railway, ocean, and sea freight that can reach international consumer marketplaces and real estate development (residential, commercial, and industrial.) Factories were built to meet the production demands of materials and goods while increased manufacturing gave way to the need to store these materials and products. The impact of manufacturing created a considerable demand for housing. Homes were built for manufacturing workers in proximity of these factories so that the increasing demands of production could be successfully met. These factories were commonly built-in urban areas becoming economic engines; catalysts of growth for the residential and commercial development of cities.