Industrial Property on the Move

Today, we will be taking a brief look at the Industrial sector.

Investors have already been snaring some quality Industrial properties — as rentals have begun to climb, following a reasonably static period over the past five years.

Industrial Prices Set to SurgeAs you can see from the table, this increase in activity has been reflected in the dominance of Developers bringing new stock onto the market.

Plus, you’ll notice that Private investors have emerged as the major category of buyers for Industrial property.

The current wave of development is catering for a much larger office component … relative to what is normally provided by Industrial developers.

So much so, you can now often find it as high as 40% of the overall building area.

This trend is being driven by occupiers wanting to combine their Administration in top-quality accommodation, closer to their distribution facility. Rather than leasing an outer-lying warehouse, and having their head-office housed in a more traditional office location.

Bottom Line: Many of the larger developments are occurring by way of a fully-integrated Business Park environment — catering for small to medium-sized businesses.

And this is providing investors with the opportunity to acquire affordable Industrial properties — surrounded by all the amenities needed by those tenants who occupy them.

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