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Specialty Services: Industrial Tips
Industrial properties encompass a wide variety of property uses such as manufacturing,
processing, research and development, storing and transporting. Warehousing is included in
the industrial classifications and most have some office component in the building.
Office/Warehouse properties are typically flexible, general-purpose buildings that can be
adapted to a small-user's needs. Industrial differs from other real estate
types in the following ways:
Height is third significant dimension.
· Utility is overriding factor
· Little concern for the "public."
| Industrial is typically categorized by use.
Usually they are: |
| Heavy Industrial |
| Light Industrial/Assembly |
| Warehouse Distribution Office |
| Warehouse or Research & Development |
| Industrial Parks |
Manufacturing properties comprise the heavy industrial segment. Auto making, textiles,
steel, chemicals and food processing are typical uses of such properties. Typically zero
to 5 percent office space.
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Warehouse/Distribution
Generally the least intense industrial use, warehouse and distribution facilities often
are located in the lowest-priced land in older parts of town or in suburban fringes.
Typically, like light industrial/assembly property, office use is limited to management
tasks for the distribution or warehouse facility, or about 15 percent of total space.
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Light Industrial/Assembly
Production lines that assemble components produced elsewhere are based in light
industrial/assembly facilities. Some light manufacturing requiring limited raw materials
and physical changes to the materials also might be conducted in such facilities. Space
devoted to offices usually is less than 10 percent.
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Office/Warehouse or Research & Development
Broadly defined to include wide variations in markets across the country. Research and
development office/warehouse properties could have lab facilities, offices, warehouse
facilities, or personal services such as carpentry or machine repair. Typically, each
property allows a variable combination of office and other uses. The percentage of office
space ranges from 20 percent to 100 percent, depending on the market and individual needs
of the user. Research and development office facilities are generally used in high
technology markets. In other markets, you will find office/warehouses of smaller size,
with multiple tenants.
Industrial Parks
Industrial parks are areas specifically designed and zoned for manufacturing and
associated activities.
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Use our handy
Industrial Property Checklist or our
Industrial Property Improvements Checklist
to help you evaluate industrial property.
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