Industrial Real Estate Investing

Industrial real estate generally includes warehouse and distribution buildings, manufacturing facilities, and flex space combining office and industrial use within a single building. Columbus, OH has become a significant logistics and distribution hub due to its central location within a day's drive of a large portion of the United States population, along with strong interstate highway access through Interstates 70 and 71, which has generally supported demand for warehouse and distribution space among national retailers and third party logistics providers. Industrial property generally features simpler building systems and fewer tenant improvement requirements than office or retail space, which can generally result in lower ongoing capital expenditure needs relative to the property's value compared to some other commercial asset classes.

Industrial property held for investment or business use generally qualifies as like kind real property for a one thousand thirty one exchange, and Columbus, OH's position as a national distribution hub has made industrial replacement property a frequent target for exchanging investors seeking long term leases with credit tenants. Investors evaluating an industrial replacement property generally review the building's clear height, dock door and trailer parking configuration, tenant lease terms and any early termination or expansion options, and the property's proximity to interstate access, since these factors generally influence both current tenant demand and the ease of re-leasing the building to a different logistics or manufacturing tenant in the future. Given the technical nature of industrial building specifications, Columbus, OH investors generally engage a commercial inspector familiar with industrial construction before finalizing identification of an industrial property within the forty five day period.