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The Types Of Industrial Real Estate

Published on August 28th, 2019

While industrial real estate properties may not be as exciting as the ever sought after retail properties, the sales have been successful since 2015 and the industrial real estate sector was a top choice in 2016. People are now looking into commercial real estate in Chicago for their industrial needs, so check out these different types of industrial properties if you are looking to purchase or lease one.

Warehouse Distribution

Over half of industrial properties are known to be warehouse industrial properties, used as bulk or office warehouses. There are variances in what a warehouse distribution building is used for—warehousing vs. distribution—but they all share similar space features such as the ceiling height, loading capabilities, and the building design.


More than 50 percent of building spaces are dedicated to manufacturing. These types of buildings are equipped with the infrastructure to support the heavy power and machinery requirements of the tenants. Interior features can include things such as pressured water, an HVAC system, and storage tanks and cranes.

Flex Industrial

Tech companies, researchers, developers, and start-ups tend to look into flex industrial properties as they are more upscale than other industrial buildings with a bit more interior and exterior finishes. It’s easy to adjust some of the office space into warehouse space depending on how you are using the building.


This is exactly what the name assumes—a type of industrial property that is a smaller facility with more than one tenant. Multi-tenant industrial properties are typically used by small to mid-sized businesses who are able to add-on space by incorporating said space in the same building.

Industrial Real Estate Benefits

Some advantages of investing in industrial real estate include:

  • Higher Yields: Industrial properties are less subject to the ups and downs of the real estate market, which makes them a good option for the investor who is looking to lower his or her risk.
  • Net Leases: This means that not only are tenants signing lease agreements for longer periods, but they are also agreeing to pay for most of the major expenses, including maintenance and repairs.
  • Flexibility: Did you know that industrial properties vary when it comes to size, shape, and building requirements? This means that many of these spaces can be reconfigured to accommodate a variety of tenants.

Contact Frontline Real Estate Partners today if you are interested in learning more about industrial commercial real estate in Chicago.

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