If you are a property owner looking to increase your portfolio, industrial property is an attractive option. Industrial properties tend to have long-term tenants with stable leases and higher rental yields than residential or commercial investments. They also have the potential for significant capital growth over time. Here is a breakdown of why investing in industrial property can be a wise decision.
Capital Growth Potential
Industrial property generally appreciates faster than other types of real estate due to its higher demand and longer-term leases. This means that if you invest in industrial property now, you are likely to see capital gains when you decide to sell later on down the line. This makes industrial properties an attractive option for those who are looking to make a long-term investment that will pay off in the future.
Industrial properties tend to have longer-term leases compared to other types of properties, making them attractive for investors who want stability and predictability from their investments. A typical industrial lease can range from five to twenty years, meaning that once you sign a tenant, they will remain there for some time and provide regular rental income. Because of this stability, investors do not have to worry about their investments as much as they would with other types of real estate investments that may have shorter lease terms or more frequent turnover of tenants.
Higher Rental Yields
Another benefit of investing in industrial property is the higher rental yields associated with this type of real estate investment. Industrial properties typically generate more rent per square foot than residential or commercial properties, giving landlords greater returns on their investments over time. This means that even if the market fluctuates or changes, landlords can still rely on consistent rental income from their industrial properties.
Investing in industrial property can be a wise decision for any investor looking for capital growth potential and increased rental yields over time. With longer lease terms and stable tenants, owners can rest assured that their investment is secure and protected from market fluctuations and changing trends which could affect other types of real estate investments. As a result, investing in industrial property pays off in the end—both financially and emotionally! If you’re considering investing in commercial real estate, consider taking advantage of the many benefits associated with investing in industrial property today.
How can SPM help?
At Spearhead Property Management Ltd., we have partnered with real estate specialists in the industrial markets. We are part of a non-public network of building owners, management and investment firms. Among the members of this network, we share property catalogues, investment opportunities and off-market sales. This gives us a unique opportunity to present our clients with first access to potential investment properties in the industrial marketplace.
Further more, we started in the industrial marketplace. Quite frankly, we specialize in the industrial property sector and intend to continue to do so. If you want your industrial property managed well, call us today to see what we can do for you.