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Industrial Buildings fall under commercial investments because even though the rent may be proportionally less than the same size office or retail structure they still generate cash flow.
MOST INDUSTRIAL COMPLEXES ARE BUILT TO SUIT AS EITHER A WAREHOUSE, ASSEMBLY OR DISTRIBUTION CENTER FOR A TENANTS USE.
Industrial Projects can be as simple as an industrial warehouse or as complicated as a scientific technological light assembly plant.
Because Industrial space is usually large open areas, the design costs for the actual space are lower, and therefore command lower rents for longer periods of time.
Cost of such construction is much lower, and most of the tenants cover all the operating expenses. Most if not all are also rented triple-net.
Triple-net Leases are where the tenant pays operating costs, taxes and insurance.
Property Condition and Characteristics
The property should have be designed for truck turnaround, ingress, egress, accessibility and minimizing traffic flow congestion.
For warehouse structures the ceiling heights should be adequate to accommodate forklifts and pallette configurations.
Industrial Structures are divided into three sub-areas...
Research and Development
Light Assembly
Warehouse Distribution
For further information on Industrial Buildings and their financing requirements please click here,
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