Whether you’re buying, leasing, or subleasing, an industrial space gives businesses the opportunity to have a physical location to conduct their operations. In today’s market, the trick is finding what industrial property is the most practical for the business and their practice. From a warehouse to a special use building, there are unique industrial spaces that come in various shapes and sizes that can fit an organizations different needs and wants. Cawley Chicago’s industrial expert, Dustin Albers, provides us with a brief description of each of the top 5 uses within an industrial property.
Distribution is the reason why industrial real estate has become the jewel of commercial real estate recently. The rise of e-commerce along with last mile deliveries has increased the demand for distribution properties. A lot of the new big box industrial developments are designed and set up for large distribution companies. With the ever more increasing usage of e-commerce there is no end in sight for the demand of modern precast industrial properties for distribution companies.
The need for freezer/cooler industrial properties has skyrocketed recently. With grocery delivery services becoming more popular, we have seen a lot of freezer/cooler spaces pop up in last mile locations. This usage is typically for food distribution, however, freezer/cooler buildings can have many uses. For example, pharmaceuticals and vaccines also need to be stored in freezer/cooler properties, displaying that there are more uses for freezer/cooler buildings other than just food distribution.
We have seen a new term pop up in industrial real estate called “industrial services“. These companies need hard to find outdoor storage industrial properties for their usage. This would include construction companies, construction equipment rental, landscaping, and truck/trailer parking companies. These “industrial service” properties are getting harder and harder to find with cities and villages cracking down on these usages which is pushing many of the companies further outside of the city.
Manufacturing has long been one of the key drivers in industrial real estate. Manufacturing allows businesses to sell finished products at a higher cost than the value of the raw materials used. Popular manufacturing uses include food manufacturing, auto parts manufacturing, automation manufacturing, and printing. There is still a demand and need for smaller manufacturing properties along with large big box manufacturers.
Besides normal industrial uses, we also see industrial properties used for “special uses”. Many times these are recreational uses such as ice rinks, skate parks, fitness centers, and car dealerships. These uses can be on the fringe of retail or industrial uses and many times require a special use permit from the city or village.
Cawley Chicago‘s experienced advisory team provides end-to-end services by working with you from introduction of market insight all the way through project delivery. Not looking to buy or lease? Cawley Chicago also has an in-house property management team, working hand in glove with ownership, leasing, and capital markets. We ensure owners create value for their assets, maintain value of their assets, and when appropriate monetize the value of their assets.