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Why Investors Love Multi-Tenant Industrial Properties

Commercial Space Toronto Blog

Why Investors Love Multi-Tenant Industrial Properties

As an investor, you will always love the idea of using property all to yourself. This is because of the fact that you do not want to be disturbed by other tenants within that property. But to some other investors, multi-tenant industrial properties are the ones to choose. There are reasons behind why these options are loved by many. We are enumerating these reasons for you here:

Great return on investment

Industrial real estate investment is not the same as other types of investments. Do not expect the same perks such as those you see in classy apartments or those towering skyscrapers around town. You will not even see a well-landscaped lawn with an industrial property investment. The lack of these aesthetics actually puts you at an advantage. How is that so?

Come to think of it, without all these perks, you will never have to suffer the risks that come with other properties that have them. This will mean you will sleep better at night without thinking about how you will face economic traps the following day. You are sure to get a great return on investment when this is the case.

Easier to manage when compared to other properties

Industrial properties are attractive in the sense that you do not really have to think about how you will maintain the property. Multi-tenant industrial properties allow you to manage the property like you would with your own residences. Interior janitorial services are not at all times required by tenants plus you will not have to go through the same predicaments as other landlords have when it comes to making sure that the property is in tiptop shape. Tenants will take charge of all their needs thus lessening the burden on your part as the investor.

Lower cost in terms of ownership Lower cost

There will come a time when tenant improvements may be needed to benefit incoming or new office tenants. When this is the case, you do not really have to think much of the cost that you will need to spend in the process. The same is true if an existing tenant wants to make tenant improvements on his space as well.

A flexible choice

Whilst it was mentioned awhile back that multi-tenant industrial properties do not necessarily have the same perks as those of other properties being sold in the real estate market, you should not doubt the flexibility it can offer. Flexibility in these properties is defined by the different shapes and sizes of industrial properties that you will get.

You will be happy with the fact that one space can be a combination of office used for operations with a portion of it acting as a warehouse for the distribution of goods and services. Some may have little office space with majority of the area devoted for warehousing purposes. You can also convert the space to the liking of your tenant. This will then make you a more attractive choice for tenants looking for greater flexibility to accommodate their varying needs.

Lesser competition

This is because of the fact that only a few will dare invest in this type of property. Even old industrial buildings are now being converted for other business enterprises and just a few of the newer industrial real estate properties are being constructed. You do not have many properties of this same type existing in suburban or even rural areas.

Increasing demand for industrial space

Most of the industrial properties you are familiar with are those single-storey buildings where industrial transactions can be made. This means that truly, industrial properties are not as expensive as you think they can be. These days, however, the need to expand such spaces is high because of the increasing demand for a small space where a business owner can do his day-to-day activities. This increases the chances of gaining more profit as you convert the single-storey building to more spaces with more tenants making use of them.

Growing e-commerce

What does e-commerce got to do with industrial property investments? Well, with most businessmen trying to bring comfort to their consumers, expect that the growing e-commerce will increase the demand for industrial spaces all the more. Multi-tenant industrial properties can be rented out to such business owners so they can use their space as either e-commerce fulfillment centres or warehouses.

Opportunity for expansion

We have mentioned expansion in the sense that you can add more space to the property whenever a demand for one increases. Add to that, consider the tenant’s goal to grow his business too which means giving him the chance to expand his business without necessarily renting another space in another area. You can always offer renovation of another space adjacent to the tenant’s space so he can freely expand his business whenever he needs to.

With all these reasons to love such real estate properties, you might as well want to look for options for industrial property for sale in Toronto. Feel free to read more information about such properties via our pages!


Posted 2017-09-15T20:47:32+00:00 Sep 15 2017 By inBlogwith0 Comments