In the modern age, many real estate investors are moving away from conventional investment properties like apartments, houses, retail spaces, and offices. While these properties remain relevant, industrial real estate properties are becoming increasingly popular due to their lucrative income and ROI benefits.

So, whether you’re looking to build or diversify your portfolio, check out the five most popular types of industrial real estate buildings you can invest in today.

5 Types of Industrial Real Estate Properties You Can Invest In

1. Industrial Storage Units

Storage units are among the most affordable types of industrial real estate properties. They’re commonly rented out by companies in industrial areas looking to store supplies, equipment, products, excess furniture, and more.

Industrial storage units are common on routes or towns with several warehouses, factories, and manufacturing units. Therefore, they provide easy access to users looking for additional storage at a low cost.

2. Distribution Warehouses

Distribution warehouses are becoming quite common in the age of e-commerce as more vendors look to store goods and products for order-based deliveries. These warehouses are strategically located near highways, airports, rail depots, or seaports to enable easy transit. Many companies rent out these spaces to serve as their order fulfillment centers in different parts of the country.

3. Truck Terminals and Drop Yards

Truck terminals are an essential part of the global supply chain. They’re intermediate sites where truckers can load small volumes of cargo without requiring dedicated storage space. Similarly, drop yards are facilities where truckers can drop semi-truck trailers and use them for drop-trailer programs in a specific location.

This model allows them to make multiple deliveries and avoid dead miles or bobtailing. As the trucking industry grows, truck terminals and drop yards are becoming popular industrial real estate investment options for investors looking to generate daily, weekly, and long-term rental income.

4. Data Centers

As the business world becomes increasingly digitized, data centers are growing in demand as they allow companies to store equipment holding their data. Investors can purchase these spaces and lease them to businesses in the area looking to store servers, hard drives, modems, switches, and other essential equipment types that require a lot of space.

5. Flex Space

Finally, flex spaces are large industrial spaces serving commercial offices or retail outlets. They’re commonly used by businesses that require a large space for research and development, tradeshows, and other activities. Many serve as showrooms for industrial machinery and related products. Flex spaces generate much more income than commercial offices due to their size and applications, making them a viable choice for investors looking for a quick ROI.

Wrapping Up

Industrial real estate properties are becoming more popular than ever before among investors, especially in the golden age of eCommerce and manufacturing. Compared to offices, retail stores, and apartments, these properties are more diverse in terms of types, sizes, locations, and use cases.

For more interesting reads related to real estate investing, visit the CHRE website right away. You can also explore our vast options of industrial investment properties in Rio Grande Valley.