Industrial Property

Industrial property refers to real estate used for industrial purposes, such as manufacturing, production, storage, distribution, and research and development. This category of property is distinct from commercial and residential properties, as it is specifically designed to support industrial activities that involve heavy machinery, large-scale production, and the storage of goods.

Types of industrial properties

Industrial properties can be categorized into several types based on their function and use:

• Manufacturing facilities: These properties are designed for the production and assembly of goods. They often include large, open spaces, high ceilings, and specialised machinery.
• Warehouses: Used primarily for storage and distribution of goods, warehouses are typically large, open spaces with high ceilings to accommodate shelving and inventory.
• Distribution centres: Similar to warehouses but specifically designed to facilitate the rapid movement of goods. These properties often include loading docks and easy access to transportation routes.
• Research and development (R&D) facilities: These properties are used for innovation and the development of new products. They often include office space, laboratories, and testing areas.
• Flex spaces: These are versatile properties that can serve multiple purposes, such as a combination of office space and light manufacturing or storage.

Importance of industrial property

Supporting the economy

Industrial properties play a crucial role in supporting the economy by providing spaces for manufacturing, storage, and distribution. They are essential for the production and movement of goods, which are vital to both local and global supply chains.

Investment opportunities

Investing in industrial properties can be lucrative due to their high demand, especially in areas with strong industrial activity. These properties often yield stable rental income and can appreciate over time.

Business operations

For businesses involved in manufacturing, logistics, and distribution, industrial properties are fundamental to their operations. The right industrial property can enhance operational efficiency, reduce costs, and improve overall productivity.

Factors influencing industrial property value

Several factors can influence the value of an industrial property:

• Location: Proximity to transportation hubs, such as highways, ports, and airports, is crucial for industrial properties.
• Zoning: Industrial properties must comply with local zoning laws, which dictate the types of activities that can be conducted on the property.
• Property size: Larger properties with ample space for machinery, storage, and expansion are typically more valuable.
• Infrastructure: Access to utilities such as electricity, water, and gas is essential for industrial operations.
• Condition of the property: Well-maintained properties with modern facilities are more attractive to tenants and buyers.

Industrial property in action

Industrial property in action: Investing in a distribution centre

An investor in Melbourne identifies a high-potential distribution centre located near major transportation routes, including highways and a port. Recognising the demand for such facilities due to the growth of e-commerce, the investor acquires the property. The property’s strategic location and features, such as multiple loading docks and ample storage space, make it highly desirable for logistics companies. As a result, the investor secures long-term tenants, generating stable rental income and a strong return on investment.

Learn more

Financial confidence comes with learning. Explore our Learning Centre and read these helpful links:

• The benefits of business loans for businesses
• How building loans can revive incomplete constructions

Get started

Industrial properties are crucial for businesses involved in manufacturing, logistics, and distribution. At Funding, we offer financial solutions to support the acquisition and development of industrial properties. Whether you’re investing in a warehouse, distribution centre, or manufacturing facility, our tailored loans can help you get started on your property ambitions.

Explore how Funding’s business loans and building loans can help you achieve your industrial property goals.