Light industrial real estate is a desirable investment. Here’s why.
Real estate investing is one of the oldest forms of wealth diversification. Owning land has long been seen as a way to preserve and grow wealth. After all, centuries long ago, lords and other aristocrats owned acres of land tended to by their loyal vassals. While we are by no means in the dark ages, we are in a time when modern-day investors can benefit from investing in different kinds of real estate besides residential or commercial. What is light industrial real estate?
Defining Light Industrial Real Estate
Light industrial real estate is property used for industrial purposes, such as manufacturing, distribution, storage, and even showcasing. What makes this kind of industrial real estate “light” is its square footage, which usually ranges between 5,000 square feet and 50,000 square feet. This kind of space is for “light” use; in other words, it is usually for small businesses like growing entrepreneurs, family-owned businesses, and startups.
Uses for Light Industrial Real Estate
- Manufacturing: A small, independent business might use the space for manufacturing. It could be the center where all or some of the production process steps happen. It is likely to house smaller machinery and produce smaller goods than middle or heavy industrial sites might.
- Warehousing and Distribution: Light industrial real estate can also be used for last steps in the production process, storage, and distribution. Storage facilities can be seen as light industrial property. The site may also be a point from which trucks take the products to retail centers.
- Providing Services: Light industrial centers can also be places where customers take products to service companies to fix. They can also be a combination of production site and showroom. Mixed-use properties can include industrial and commercial functions.
Investing in Light Industrial Real Estate
Light industrial real estate is an interesting type of real estate investment that has its own challenges. As an investor, you will be responsible for maintaining and potentially renovating the property so that at least one reliable tenant will find it attractive. On the other hand, light industrial real estate is an attractive investment due to the rise in e-commerce. It is a stable investment with the potential for passive income if you manage it wisely.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.