Industrial Real Estate Trends You Should Know About

There’s no doubting the value of industrial property to wide-scale economy activity. For the most part, there’s constant demand for expansion, and market growth can only be accommodated when there’s ample supply in the industrial real estate sector.

Industrial real estate includes facilities, buildings, and infrastructure used in the production of goods and materials, as well as other lots and properties that can be used for industrial purposes. Factories, power plants, automotive production centers, and chemical plants are examples of industrial real estate.

It’s for this reason that many companies in the field of heavy industries should take a closer look at the fundamentals of the industrial property landscape. Here are the trends defining it right now.

1. High industrial volumes

Industrial production has been stable in recent years, but it’s interesting to note that there remains an increasing demand for available lots. This comes as policies favoring top-tier production across the globe are making it possible for companies to scale their operations.  Despite the fact that the Trump administration favors a more protectionist stance for the American industrial sector, we are seeing industrial volumes increase. This, in turn, should also cause an increase in the demand for industrial real estate.

2. New disruptions

The tech industry, in particular, is leading the charge when it comes to disruption. As new innovations are introduced year by year, we can see the industrial landscape expand to accommodate the production of new materials and product lines. This will eventually empower companies to scale down their costs and create opportunities for growth.

Companies that produce high-quality iron castings and offer machining services, for example, are benefiting from technologies such as Computer Numerical Control which allow them to streamline the production process. The resulting benefit comes in the form of less wastage and provisions for possible expansion in the future.

3. Focus on risk

With new innovations come challenges to the supply chain. As industries are skewing towards big data, it’s important for manufacturers to implement the needed safeguards to protect their infrastructure from logistical and operational risks.

This new focus on risk mitigation has influenced decisions on scouting for possible industrial real estate locations. After all, geography is just as important as having the right technologies in tow. That being said, companies are looking towards locations that provide a competitive advantage, offer provisions for scaling, and, more importantly, make growth likely.

This would mean companies will be more keen on finding optimal locations that are less at risk to natural disasters and are strategically situated to ease the logistical workflow.

4. Safety and a humanized work environment

If anything, the work environment plays a critical role in industrial productivity. No doubt, the choice of location and facilities are vital to securing a safe and “human-centric” environment for workers. Companies that are looking to expand their operations will have to focus on designing their industrial complexes in a way that provides maximum security and efficiency. Influenced by some of the major tech companies, businesses are also looking into providing amenities such as recreation areas.