Nowadays, property investment is one of the many investment sectors chosen to maintain financial stability against strong inflation. Therefore, it is very common that there are many investors who choose the property business to run.
Industrial property is one of profitable investment. This property is only used for industrial purposes. If you want to invest your money in the property industry, there are several things that you have to consider. One of the things that you should consider is your property’s location.
In general, there are several locations that are considered bad for investing such as: industrial areas for heavy goods, slums, high traffic areas (or too far in no man's land), and noisy locations. Home owners do not want to be near airports, highways or railroads. But for industrial property investment, the railroad can be part of a multimodal distribution network.
Near the airport means it is closer to a hub so it can facilitate last minute delivery. The best location depends on the type of industrial property to be invested. Although industrial property investors usually attracted by high traffic, If the location next to highways and railroads, in the future it will create problem when you want to expand the industrial estate because the land is not available anymore.
Investing in industrial property is a hot item today, especially for warehouses and distribution centers. The first step in choosing the best location for industrial property investment is to find out what the motivation or purpose of buying the property. Then there are some things that you have to consider when choosing industrial property locations such as:
For Small Scale Sellers
E-commerce will continue to grow here and abroad until the future. The more demand for goods means the higher the demand for warehouses for easier local distribution and delivery. This will benefit warehouse owners in the city.
Remember to Choose Properties with Low Operational and Investment Costs
Industrial property, although often seen as a large industry, actually has lower operating costs and maintenance than commercial properties of comparable size. You can find a very good industry at a very small cost to increase and maintain ROI (Return on Investment).
Consider Choosing Industrial Property for the Needs of Tenants Who Rent Long-Term
Long-term rentals are rare in the property rental sector. However, in industrial property, usually, tenants need long-term leases for their business. One example of a tenant is an e-commerce distributor.
Look for a Flexible Industrial Room
Industrial space underwent continuous changes in design and layout from size to shape. Today's investors must look for industrial spaces that can be rearranged and reused for various purposes. The goal is to remain flexible to be ready when new changes occur in the industry
The definition of vacancy rate is the percentage of all available units in a rental property that are vacant or unoccupied at a particular time. Locations with low vacancy rates (usually city ports) are ideal locations for industrial property investment. California has one of the lowest vacancies (more than 1% in LA) and so does New Jersey, Seattle, and Atlanta.
Be Proactive, Don't Just Be Responsive
With current market trends, big retailers seem to be hit by a fairly strong attack because of the world of E-commerce. Then many warehouses that are usually rented by large retailers are now empty again. This provides many opportunities for investors to utilize industrial property at low prices.
Those are several things that you have to consider when looking for industrial property locations for investment. One of an industrial estate with complete infrastructure is Karawang New Industry City (KNIC). As one of the largest industrial areas in West Java, KNIC is a well-known industrial area and has a strategic location that is good for investment.
