## Strong Demand for Industrial Real Estate.

Canada's industrial real estate, especially in warehousing and fulfillment, is witnessing robust demand, primarily fueled by e-commerce growth.
This surge necessitates expanded storage and distribution capacities. With the national availability rate for industrial properties being low, there's a notable [increase in occupancy and rent prices](https://www.jpmorgan.com/insights/real-estate/commercial-real-estate/commercial-real-estate-trends), signaling a dynamic market ripe for investment and growth opportunities.

## Innovation in Industrial Space

![Industrial Multi Level Development.jpg](/uploads/Industrial_Multi_Level_Development_768ae0c41e.jpg)

Interest in innovative industrial spaces, like[ vertical or multilevel developments](https://www.naiop.org/research-and-publications/magazine/2020/spring-2020/development-ownership/from-horizontal-to-vertical-industrial-intensification-grows-up/), is growing. These creative solutions address the demand and
high costs in industrial real estate, offering efficient space utilization. Despite challenges in accommodating larger vehicles, such designs showcase progressive thinking and adaptability, vital for long-term industry success. 


## Cross-Over with Retail Market & Last-Mile Delivery

![Industrial Real Estate Trends Warehouse Lease.jpg](/uploads/Industrial_Real_Estate_Trends_Warehouse_Lease_303b4239f4.jpg)

[The lines between industrial and retail real estate are blurring](https://www.cbre.ca/insights/articles/the-line-between-retail-and-industrial-real-estate-has-been-blurred-forever), with a shift towards industrial sites near customers for efficient e-commerce
delivery. This convergence offers new strategic investment opportunities and could streamline the supply chain by integrating retail and industrial operations. Additionally, this trend aligns with evolving consumer behaviors, further driving demand for strategically located industrial properties.

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Industrial real estate trends in 2024. How to do property valuation for your industrial land for sale or warehouse lease. 

Exploring growth and Innovation in Canada's Thriving Sector. Canada's industrial real estate, especially in warehousing and fulfillment is witnessing robust demand, primarily fueled by e-commerce growth.  

Industrial Real Estate Trends In 2024

## Maple Ridge is the new home of $1.05-billion lithium-ion battery plant.

Prime Minister [Justin Trudeau](https://twitter.com/JustinTrudeau?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor) and Premier David Eby made the announcement Tuesday, touting the partnership with battery cell maker [E-One Moli](https://www.molicel.com/) as a step towards developing B.C.’s clean economy.

<iframe width="560" height="315" src="https://www.youtube.com/embed/la12ia8r8vU?si=Ry0206oD0rsmJOma" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>


# The federal government is putting up $204.5 million through the Net Zero Accelerator Initiative

B.C. has agreed to provide funding of up to $80 million for the new advanced manufacturing facility, making it the first of its kind in western Canada, as stated by the province.

![Spending.PNG](/uploads/Spending_8b57de53ca.PNG)

>They know that B.C. has a clean energy supply and that Canada has essential supplies that go into cleantech like batteries, and they know that our government has been working hard since 2015 to build up a whole cleantech ecosystem from investment tax credits for manufacturing to a critical minerals strategy to support for workers and their families,” Trudeau said.

The Canadian division of Taiwan-based E-One Moli Energy will redevelop its existing 1990-built industrial building at 20000 Stewart Crescent in Maple Ridge’s Maple Meadows Business Park into a new $1.05 billion state-of-the-art manufacturing plant with a new seven-storey, 450,000 sq ft complex of research and development, office, and manufacturing space.

# The new facility on the 11-acre site is expected to support 450 high-quality permanent jobs, including 350 new additional jobs and 100 existing jobs.

![Jobs.PNG](/uploads/Jobs_c96dc716da.PNG)

The company expects that this particular facility in Maple Ridge will have the capacity to manufacture approximately 135 million battery cells annually, catering to various sectors including automotive vehicles, aerospace, consumer electronics, power tools, garden trimmers, and medical devices.

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Molicel (E-One Moli Energe) and the governments of B.C. and Canada will bring $1.05 billion lithium-ion battery cell production to 20000 Stewart Crescent in Maple Ridge, BC. This will create create 450 high-quality, permanent jobs that are key to growing the province’s clean economy.

New $1.05-billion lithium-ion battery plant to be built in Maple Ridge 

## Looking for a brand new state of the art industrial strata warehouse presale? 


If so, you're not alone. Here is your list of Top 5 offerings currently available in the Greater Vancouver Area.


# ONE|95 Business Park

![one 95 -2.PNG](/uploads/one_95_2_72cf3dc540.PNG)

[Cedar Coast](https://cedarcoast.com/real-estate/industrial/) presents a unique opportunity to own brand new state-of-the-art industrial strata units in Surrey’s Campbell Heights Business Park. The project consists of two front entrance/ rear loading buildings offering 19 strata units totalling 74,132 square feet. Marketed by Lee & Associates. 

**Location:** 34 Avenue & 194 Street in Surrey, BC

**Warehouse Sizes:**  Units ranging from 3,150 SF to 7,200 SF

**Parking:** 4-12 stalls per unit 

**Loading:** Grade Level Loading 

**Power:** 3 Phase 

**Celling Height:** 24'

**Zoning:** IB1 - Business Park Industrial

**Available:** June 2024

**Price:** Upon Request

Are you wondering what is the price per square feet? [Contact our team for details. ](https://focusedindustrial.com/contact-us)

# Link 200

![Link 200 - 3.PNG](/uploads/Link_200_3_4bf4f9da37.PNG)

[Link 200](https://orionconstruction.ca/project/link-200/) offers 54,303 sf of flex industrial space over two ultramodern, professionally designed buildings with the highest quality construction. This is your opportunity to own brand-new, small-bay industrial strata units at the high-exposure entrance to Langley City. Marketed by Avison Young. 
 
**Location:** 56 Avenue & 200 Street in Langley, BC

**Warehouse Sizes:**  Units ranging from 2,864SF to 4,000 SF

**Parking:** 3+ stalls per unit 

**Loading:** Grade Level Loading 

**Power:** 3 Phase - 100 amp

**Celling Height:** 28'

**Zoning:** IB1 - light industrial

**Available:** Immediately

**Price:** Upon Request

Are you looking for the right Industrial property that meets your needs? [Request complimentary consultation!](https://focusedindustrial.com/sales)

# Port Kells West

![Port Kells West.PNG](/uploads/Port_Kells_West_579f933182.PNG)

Port Kells West, [Beedie’s latest industrial strata](https://www.beedie.ca/industrial/bc/) development represents a unique opportunity for businesses to purchase state-of-the-art space in Surrey’s most coveted industrial node, Port Kells. Marketed by Colliers.
 
**Location:** 98 Avenue & 189 Street in Surrey, BC

**Small Warehouse Size:**  Ranging from 6,900 SF to 7,200 SF

**Big Warehouse Size:** 12,235 SF

**Parking:** 9 - 15 stalls per unit 

**Loading:** Grade Level Loading 

**Power:** 3 Phase - 200 amp

**Celling Height:** 24'

**Zoning:** IL1 - light impact industrial

**Available:** Immediately 

**Price:** Upon Request

Either making an offer on the property you like or sourcing off market opportunities, Focused Industrial is here to help. 
[Click here to connect.](https://focusedindustrial.com/contact-us)

# Nine King Edward Business Park

![Fraser Mills.PNG](/uploads/Fraser_Mills_18b3ff621d.PNG)

[Nine King Edward Business Park](https://www.beedie.ca/industrial-real-estate/nine-king-edward-for-sale-coquitlam/) is comprised of 16 premium industrial units ranging from 7,970 SF up to 94,750 SF, featuring best-in-class specifications including 28’ clear ceilings, dock and grade loading, expansive glazing, and more.
 
**Location:** King Edward Street, Coquitlam

**Warehouse Size:**  Ranging from 7,900 SF to 12,224 SF

**Parking:** 7 - 11 stalls per unit 

**Loading:** Dock Level & Grade Level Loading 

**Power:** 3 Phase - 200 amp

**Celling Height:** 28'

**Zoning:** CD1 - light industrial/business park 

**Available:** Q4 2024

**Price:** $750/SF

# Pivotal 2

![Pivotal 2- 2.PNG](/uploads/Pivotal_2_2_8c5b8d85c3.PNG)

TAKE THE NEXT STEP AT [PIVOTAL 2](https://conwest.com/industrial/pivotal-2/). The final opportunity to purchase a modern functional warehouse space with exceptional quality second-floor offices in the heart of Port Coquitlam, surrounded by numerous retail amenities at Fremont Village. Marketed by Cushman & Wakefield.
 
**Location:** Seaborne Avenue, Port Coquitlam

**Warehouse Size:**  Ranging from 3,200 SF to 3,700 SF

**Parking:** 3 - 5 stalls per unit 

**Loading:** Grade Level Loading 

**Power:** 3 Phase - 100 amp

**Celling Height:** 24'

**Zoning:** M3 - light industrial

**Available:** Move-In Ready

**Price:** $646/SF

Finding the right property that fits your business needs can often be challenging and cumbersome, especially considering constant price climbs and low inventory. Use our industrial [property search](https://focusedindustrial.com/advanced-search) to browse more industrial properties for sale in the Greater Vancouver Area and Canada. 

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Industrial presale opportunities in the Greater Vancouver Area. Warehouse for sale in Surrey. Warehouse for sale in Langley. Warehouse for sale in Port Coquitlam. Warehouse for sale in Coquitlam. Industrial land for sale. Industrial presale Vancouver. Link 200 project. One|95 Business Park. Cedar Coast. Astria properties. Port Kells West by Beedie. Nine King Edward Business Park by Beedie. Pivotal 2 by Conwest. Contact Dmytro Chernysh and Focused Industrial Group for industrial land for sale and warehouse lease opportunities. 

Here is your Top 5 industrial strata presales opportunities available on the market in Q4, 2023. Do not miss your chance to own brand new state-of-the-art industrial warehouses in Surrey, Langley and Tri-City areas. 

Industrial Strata Presale Opportunities in the Greater Vancouver Area | Q4, 2023                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

## Struggling to determine the true value of your property in Canada's ever-changing real estate market?

**If so, you're not alone. According to recent statistics, the Canadian commercial real estate market is anticipated to [increase at a CAGR of over 8%](https://www.researchandmarkets.com/reports/5572689/canada-commercial-real-estate-market-growth) in the coming years.**

Many Canadian commercial real estate (CRE) owners like yourself find themselves worried about underselling their assets. The good news is that there are specific CRE valuation methods you need to know about to ensure you get the best deal possible.

In this article, we'll explore these methods in detail, empowering you to accurately assess and maximize the value of your property.

So, without further ado, let’s get started!

## Why is CRE Valuation Important?

CRE valuation helps property owners, and investors determine the fair market value of their assets so they do not undersell their property and get maximum ROI. It plays a vital role in assessing the worth of properties used as loan collateral.

Moreover, accurate and up-to-date valuations provide buyers, sellers, and investors with transparency and confidence, which is beneficial to the industry's overall growth.

## Factors to Consider During Commercial Property Value Calculation

Let's say your CRE value was $1 million last year, but this year it rose to $1.5 million; so what changed during this time? Here are 3 major factors that can affect your commercial property's value: 

# Cap Rates

The income capitalization method compares the value of a property to similar properties in the same market based on its net operating income (NOI). 

![Screenshot 2023-06-20 at 18.58.07.png](/uploads/Screenshot_2023_06_20_at_18_58_07_79b5a4926c.png)

For example, if office buildings in Vancouver have a cap rate of 6% and a comparable office property generates an NOI of $500,000 per year (before debt service), the income capitalization approach would value the building at $8,333,333 ($500,000 NOI / 6%).

# Utility

Commercial utility means the more useful a property is, the greater its value. To understand this, let's look at an example of two restaurants available for rent. 

Restaurant A is in a busy downtown area with lots of foot traffic and a spacious interior. In contrast, restaurant B is located in a less busy area and is far from the city center. In other words, Restaurant A has a higher utility value than Restaurant B.

So you see, the utility of a commercial property is directly linked to its valuation.

# Supply and Demand
![Demand and Supply (Article Image).jpg](/uploads/Demand_and_Supply_Article_Image_5213ab65e8.jpg)

CRE supply refers to the number of properties available for sale or lease in a given area. In contrast, real estate demand refers to the number of buyers or tenants seeking properties in that area.

When the supply of CRE is limited and its demand is high in a particular area, property value tends to increase. Due to less availability, buyers and tenants may be willing to pay more.

Likewise, if there is an abundant supply of commercial real estate, but its demand is low in an area, property value decreases. Market conditions like supply and demand can also significantly impact your property's value.

## Top Commercial Property Valuation Methods

Here are the top 6 commercial property valuation methods used in Canada.

# 1. Cost Valuation

Cost valuation is a fundamental method used to determine the value of commercial properties. It involves estimating the cost required to rebuild the property from scratch.

This approach is particularly useful when the property has undergone specialized improvements that significantly enhance its value.

The cost valuation method considers several factors involved in the reconstruction or rebuilding of the property. These include land value, construction costs, labor expenses, the price of materials, and other additional expenses. 

However, this method does not capture other important aspects of the property, such as market demand and potential income.

# 2. Sales Comparison

In sales comparisons, recent sales of comparable commercial properties serve as benchmarks for determining your property's market value. 

Commercial real estate agents take into account the age, condition, location, lot size, building size, number of units, square footage, type of construction, and the specific commercial sector.

In addition, they also consider any specialized improvements and make pricing adjustments accordingly. Your property value can be calculated once a comparable price per square foot is determined. Following is the formula:

![Property Value Formula.png](/uploads/Property_Value_Formula_fa7324f4d4.png)

# 3. Gross Rent Multiplier

The gross rent multiplier (GRM) valuation method is commonly used in the Canadian real estate market. This method uses gross rent revenue to estimate the value of a commercial property. 

It can give us a metric to calculate how much a property is worth. Still, it doesn't consider the property's location and maintenance. So, using the GRM along with other methods is best to get a more accurate picture.

You need to know how much gross rent a property generates annually and the GRM of comparable properties. Calculating the gross rent multiplier (GRM) is simple. 

Divide the price of your property by its gross annual income. The outcome provides a metric that you can use to assess similar commercial properties in a specific market.

![Gross Rent Multiplier.png](/uploads/Gross_Rent_Multiplier_df20420032.png)

# 4. Cost per Door 

The cost-per-door method is primarily used for multi-unit complexes or apartment buildings that generate rental income. It calculates the property's value based on the cost per individual unit, or "door."

To determine the property's value, use this formula:

 ![Cost Per Door.png](/uploads/Cost_Per_Door_1f8f0639b5.png)

For example, if the apartment building as a whole is valued at $5 million and there are 50 units, the average value per door would be $100,000. However, it does not account for differences in unit types, occupancy rates, or other property-specific factors. 

# 5.  Income Capitalization

Income capitalization focuses on a property's income potential over its physical features. It is typically used to estimate the value of income-producing properties such as shopping centers, office buildings, and apartment complexes. 

Income capitalization follows a simple yet powerful principle: the value of a commercial property is directly proportional to its income-generating capacity. 

The method uses a capitalization rate, which is the expected return on investment. You can determine a metric CAP Rate by dividing your property’s net operating income (NOI) by its market value.

# 6.  Cost per Rentable Square Foot

In this CRE valuation method, the rentable square footage is subtracted from the total square footage of the property, and the cost per rentable square foot is compared to the average lease rate. 

For instance, if a $5 million office building has a total of 20,000 SF and 3,000 SF is used for common areas, then the price per rentable square foot is $294 ($5 million divided by 17,000 SF). 

![Price Per Rentable Square Foot.png](/uploads/Price_Per_Rentable_Square_Foot_cd274431d8.png)

You can then get an estimate of the gross rental income by looking at the current market rent and comparing it to the cost per rentable square foot of the property.

# Final Thoughts

So, whether you're selling, buying, or just leasing, knowing a commercial property's accurate market value is crucial. After all, commercial real estate is a huge investment, and you cannot risk it at any cost. The above methods will surely guide you in calculating a fair value for your property.

However, if you're still unsure about determining the value of a commercial property, you can utilize a free commercial real estate valuation calculator. Focused Industrial offers an [Advanced Complimentary Valuation Tool](https://focusedindustrial.com/property-valuation) that takes into account important commercial features influencing your property's value. 

By entering detailed property information into the calculator, you can effectively analyze your commercial properties and receive commercial real estate valuation results within 24 hours.

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Commercial property valuation depends on location, net income, scarcity, & future development potential. Here are the top commercial property valuation methods.

Struggling to determine the true value of your property in Canada's ever-changing real estate market? 

Commercial Property Valuation Methods

## 1. Look for Multi-Use zoning to increase your Commercial Real Estate investment value.

**As a rule of thumb, the wider the allowable uses of a building, the higher the market resale value.**

>“Make sure you carefully assess zoning restrictions for a commercial space before making that buying decision, For example, if you purchase a building that is zoned for manufacturing only, then you’re buying something that may be less desirable for future buyers, who may want to use the space for other needs. It’s wise to look at commercial space with multi-use zoning, so when it comes to selling your premises, you have that edge.”
explains Brett Prikker, Major Accounts Manager at BDC

## 2. Buy the amount of commercial space that reflects Market Demand.

Buying too much commercial space is a common temptation for entrepreneurs. However, doing so can affect the future marketability of a property.

>You can assume that the larger the building you buy, the smaller the pool of potential buyers who will be interested in the place when you sell. Most Canadian businesses are small enterprises, and they’re not looking for large spaces to meet their needs. Generally speaking, if you buy property in the above-50,000-square-foot range, you’re dealing with a limited pool of buyers. What I’m seeing in the market is that those properties are just less in demand, because they’re not affordable for most entrepreneurs and harder to resell. - says Prikker

## 3. Place your Commercial Real Estate acquisition into a separate Holding Company.

>“It’s often wise to place your commercial real estate into a holding company separate from the operating business,” says Dan LaBossière, a BDC Assistant Vice President in Winnipeg, who has guided scores of entrepreneurs through the planning and financing of successful real estate acquisitions.

**This can facilitate the eventual sale of your business, LaBossière explains, because many buyers will want to acquire only the operating company. For some, it makes for a more affordable acquisition; for others, it makes it easier to move your operations across town or to another city.**

It also makes it easier for an entrepreneur to hold on to the real estate and use it as a source of retirement income after the sale of the business. **“I’m a strong believer that this is a great source of retirement income down the road,” LaBossière says. “It facilitates the succession of the business.”**

## 4. Invest in a building with world-class green certification (LEED)

Leadership in Energy and Environmental Design (LEED) certification provides independent, third-party verification that a building, home or community was designed and built using strategies aimed at achieving high performance in key areas, such as human and environmental health, sustainable site development, water savings, energy efficiency, materials selection, and overall indoor environmental quality. Consider buying a new building or retrofitting a used building that is LEED-certified, as these might increase property value.

Although entrepreneurs scouting the market for LEED-certified buildings or retrofitting properties will usually pay a higher price up front, they can recoup costs by improving energy efficiency, and by increasing employee productivity through improved air quality and design.

>“Given the higher costs, ideally you might also try supplementing financing for LEED certification with subsidies and grants,” suggests Prikker. “It’s important to find a balance between being a good corporate citizen and ensuring that your efforts are financially viable.” 

## 5. Work with an experienced Commercial Real Estate Broker.

>Many entrepreneurs make the mistake of doing too much speculation and not enough research when they are making decisions about the space they need, says Prikker.

A broker will not only evaluate the space that fits your specific business needs, but he or she will help ensure you’re optimizing every dollar spent. Brokers will assess the commercial real estate market to see what types of properties are in demand and calculate the space needed to accommodate future growth.

This articles is published by [Business Development Bank of Canada](https://www.bdc.ca/en/articles-tools/money-finance/buy-lease-commercial-real-estate/5-ways-maximize-your-commercial-real-estate-investment) 

## Are you interested in maximizing your Commercial Property Value or Redevelopment Potential ?

[**Contact our team today for your complimentary consultation!** ](https://focusedindustrial.com/contact-us)




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Commercial real estate is a big investment, so when you’re looking for a space for your business operations, it helps to know which factors can help raise the value of your property—value you can then reinvest in your business, in areas such as new technology, training and development for employees, or expansion into new markets.

5 Ways To Maximize Commercial Property Value 

**The staggering growth of e-commerce over recent years accelerated even more during the pandemic, adding more fuel to the fire for distributors of all kinds needing to tie down logistics space they can use for storage and shipping.**

That set the stage for a serious rally by the real estate investment trusts (REITs) that specialize in such properties. [Nareit](https://www.reit.com/), a leading REIT researcher, lists 13 industrial REITs, and says they delivered an average total return of 47.11% in 2021. That's been followed by an average decline of 14.32% so far this year.

But that recent decline presents the opportunity to pick up shares at relatively low prices. **Some of the best industrial REITs you can buy right now include [Prologis](https://www.prologis.com/) (PLD 4.80%), [Rexford Industrial Realty](https://www.rexfordindustrial.com/) (REXR 5.66%), and Duke Realty (DRE).
**
## Prologis

Prologis is one of the largest of all REITs, regardless of sector, with about 4,700 properties in 19 countries. This San Francisco-based powerhouse garners attention not just for its size, for its thought leadership.

For instance, when CEO Chairman and CEO Hamid Moghadam reported recently that "space in our markets is effectively sold out," that quote became the go-to mantra about the state of the warehouse market worldwide.

His company also has 181 million square feet that it can build out to add to the billion or so it now has, so despite its size, there's still room to grow for this provider of critical space to many of the world's leading shippers. 

Prologis stock is trading for about $164 a share, good for a market cap of about $119 billion, and is yielding about 1.97% after raising its dividend by about 49% over the past three years.

## Duke Realty

Duke Realty is the second-largest industrial REIT, with about 545 properties in 19 markets across the country. That's good for about 160 million square feet, and its largest clients, in order, are Amazon, Home Depot, Wayfair, and UPS.

That's a who's who of major shippers, and there's also a healthy mix of manufacturers and transportation companies who also will help keep this 50-year-old operation profitable and growing.

Expansion is underway, for instance, in the hot San Jose market, where the company just won approval for a 303,000-square-foot building and is seeking the same for one of similar size.

These and other projects on the drawing boards in that market are not cookie-cutter greenfield projects. The company's ability to take on challenging builds that involve, for instance in San Jose, revamping the site of a former foundry, speaks to its ability to find opportunities where others might not venture.

Duke Realty stock is trading for about $58.69 a share, good for a market cap of about $22 billion, and is yielding about 1.94% after raising its dividend by about 30% over the past three years.

## Rexford Industrial Realty

Rexford Industrial is even more concentrated, with a portfolio of 308 properties that it defines as "100% infill Southern California." That 37 million square feet is 99.7% occupied and, like other industrial REITs, its clients are willing and able to pay escalating rents and sign long-term leases.

Rexford's focus on this market can make it a particularly attractive investment among logistics stock. The company points out that it operates exclusively in areas where the average rent is more than 80% higher than the average of the next five highest U.S. markets. 

Rexford stock is trading for about $75 a share, good for a market cap of about $12 billion, and is yielding about 1.7% after raising its dividend by about 70% over the past three years.

Now, let's look at some graphic illustrations of the performance and potential of these three equities. We'll include Vanguard Real Estate ETF (VNQ 3.93%), too, to provide a benchmark comparison from this index fund of about 180 REITs.

Resource: https://www.fool.com/investing/2022/04/01/3-best-industrial-reits-to-buy-now/

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Some of the best industrial REITs you can buy right now include Prologis (PLD 4.80%), Rexford Industrial Realty (REXR 5.66%), and Duke Realty (DRE).

These Industrial REITs should keep rewarding investors for years to come.

3 Best Industrial REITs to Buy Now

# What is REIT?

REIT stands for Real Estate Investment Trust. It is a type of investment fund that is regulated by government entities and invests in income-generating real estate. It offers investors access to professionally managed real estate portfolios while providing them with liquidity, income, and potential appreciation. A REIT allows investors to invest directly in real estate without the need to purchase an entire property. The trust generates income through the management of its portfolio of properties and the distribution of profits to its shareholders. 

>Buying an investment property to rent out is not the only way to invest in real estate. Many REIT stocks exist in Canada which allow you to get real estate exposure through your investment accounts.

**In terms of returns, REIT total return performance over the past 20 years has outperformed the S&P 500 Index.** 

Since the S&P 500 is a difficult benchmark to outperform, this is excellent news for investors considering investing in REITs. This might not translate exactly to the Canadian market, but it’s a good indicator of the potential of REITs.

## Benefits of investing in REITS

- The ability to add real estate exposure to your investment accounts
- Much higher liquidity than buying and selling a physical property
- Great income potential
- The ability to access sectors that you may not normally be able to invest in (office space, industrial & multifamily)
- Potential for more tax efficiency by deferring taxes (RRSP accounts) or being tax exempt (TFSA) altogether
- Buying and selling properties can be time-consuming. Trading REITs is extremely easy and takes very little time

Please note, the increased liquidity of REITs can be a double-edged sword. In a market crisis, REIT stocks can fall aggressively when investors are flocking to cash and liquidating positions. Directly owning physical properties will likely not have the same effect.

_Resources From: [Wealth Awesome](https://wealthawesome.com/best-canadian-reit-stocks/)_

## What to look for in a good REIT?

When selecting a REIT, investors should look for one that has a Long Track Record in the industry, as well as Strong Management with a solid strategy. 

Funds should also have a High Liquidity Rate, Low Expenses, and a Diversified Portfolio. Additionally, investors should determine the REIT's Dividend Policy and consider the type of real estate investments it will be making. Finally, investors should also evaluate the REIT's ability to manage risk through diversification and approaches to market value.

**Would you like to stay up-to-date with the market trends and new investment opportunities?**

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REIT - real estate investment trust fund. Your opportunity to invest in prime real estate without a need to borrow the entire property value amount. 

What is REIT and why do you need it in your investment portfolio

Industrial real estate is a category of commercial real estate that includes buildings used for industrial purposes, such as factories and warehouses. The industrial asset class is a critical component of the global supply chain that keeps the world's goods moving from makers to markets and then to end use consumers, often located near major transportation routes in order to facilitate the shipping and receiving of goods. It is one of the most safe and risk adjustable investments on the real estate market due to its ability to adjust to a different economic situations and consumer trends.

**Everything that you see around yourself was either produced, stored, distributed through industrial facility.** 

In another words industrial real estate is the broad term for manufacturing, production, research and development, storage and distribution facilities. It is the backbone of the economy and that's why it is one of the most stable real estate investments.


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**What drives demand for industrial real estate?**

<u>Consumption</u> is the main driver of industrial real estate demand, which comes as no surprise since consumption accounts for the majority of all economic activity. 

<u>Trade</u> is another key driver of demand. Industrial real estate facilities are key nodes in the global trading system, allowing the convenient and efficient movement of goods through the supply chain to end consumers. 

<u>Supply chain reconfiguration</u>. In developing markets, companies are upgrading from smaller, outdated industrial real estate facilities to newer, larger industrial real estate buildings with modern features and upgrades. In all other markets, as the relative attractiveness of manufacturing locations and transit routes shifts, as new consumer markets rise to prominence, and as same-day and next-day delivery become the new normal, companies adjust nodes in their supply chains, driving demand for new industrial real estate buildings in new locations.

**Are you wondering if you should invest in industrial real estate ? **

Contact our team for your complimentary consultation. 

References: 
- https://www.doorloop.com/definitions/industrial-real-estate
- https://www.prologis.com/industrial-real-estate
- https://www.vts.com/blog/the-8-types-of-industrial-properties

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Did you know that the demand for industrial property is often higher than other types of investment, meaning that investors can often receive higher rental yields and capital growth. 

What Is Industrial Real Estate 

Investing in Industrial Real Estate can provide investors with several key advantages, including diversification, steady income, and potential capital appreciation. 

Here are the major uses and property types: 

## 1. Manufacturing

The word “manufacturing” evokes images of giant factories churning out products. And yes, that’s true on a basic level. Manufacturing sites are where goods are produced and assembled, and according to NAIOP, they tend to be less than 20% office space, have loading docks for trucks, and clear heights of at least 10 feet. But that leaves plenty of room for variation, as these properties change a lot based on their purpose. Here are the two most common buckets:

**a. Heavy Manufacturing**

These giant plants tend to make heavy-duty goods and materials. They usually have tens or even hundreds of thousands of square feet in usable space, along with powerful pieces of equipment, three-phase electrical power, and plenty of space for trucks to load up product. The exact machinery inside is usually customized to the end-user, so heavy manufacturing plants need to be renovated when they take on new owners or tenants. Consider Austral USA, the massive shipbuilding facility in Mobile, AL. If someone else wanted to take over that factory and use it to build, say, cars, they’d need to change up the equipment accordingly.

**b. Light Assembly**

These spaces tend to be a lot smaller and simpler than their heavy counterparts. That’s because they’re usually where products are assembled from smaller parts, stored, and eventually shipped off to be sold to consumers. As such, they can much more easily be reconfigured for different tenants.

## 2. Storage and Distribution

While manufacturing sites are where products are made, these properties are all about how products are moved around and ultimately sent to an end-user. Size can vary wildly depending on the type of property, but these facilities tend to be around 20% office space at most. Here are three common types:

**a. Distribution Warehouse**

As the name implies, these warehouses are primarily used to ship goods, which means location matters. If you want to quickly get your products anywhere in the country, you need to be toward the middle of the country, preferably near an airport. But the size of the occupying company can change that, and impact the design as well. For example, Amazon occupies several custom-built, high-tech fulfillment centers around the country (hence why it offers same-day delivery in so many markets), some of which are bigger than 1 million square feet.

**b. General Purpose Warehouses & Cold Storage**

These warehouses are more geared toward storage than distribution. That difference can play out in several ways. For example, most general-purpose warehouses have a lower door to square footage ratio, since products aren’t being moved in and out as often. It also means that location matters less than what’s being stored there, which is what drives most of the variation in these spaces. For instance, one subset of general-purpose warehouses is cold storage facilities, which are equipped with freezers and generally used to store perishable food items.

**c. Truck Terminal**

On the other end of the spectrum from general-purpose warehouses are truck terminals, which are entirely devoted to transportation. They’re simply intermediate sites where goods are loaded from one truck to another and have little to no storage space.

## 3. Flex Space

Flex properties are designed to give tenants flexibility in usage and are generally made up of at least 30% office space. However, there are also more specialized types of flex buildings that serve more specific purposes for industrial tenants:

## 6. Research & Development

R&D refers to research and development, the process by which companies create new products and improve existing ones. R&D properties vary a lot depending on the tenant and what they’ll be using the space for. For example, Google’s soon-to-open self-driving car project facility will be 53,000 square feet, feature wide open, indoor spaces to test self-driving cars away from prying eyes, and be located near Detroit, which is home to some of the country’s best auto talent. The property specifications fit the use case perfectly.

## 7. Data Center

Data centers are where companies put the equipment that holds their data, keep their internet up and running, and make cloud storage possible. They average about 100,000 square feet but can get much bigger, the world’s largest being a 6.3 million square foot facility in Langfang, China. The reason that size varies so much is that lots of companies choose to lease space in third-party data centers.

## 8. Showrooms

Showrooms typically have a mix of space devoted to offices, warehousing, and most importantly, showrooms. Typically, more than half of the space is devoted to showcasing and selling products. The most familiar example to most people would be a car dealership, but there are several other kinds of businesses that need showroom space.

## 9. Industrial Land

 This type of industrial real estate is used for the development of new land for various purposes such as; industrial strata warehouses, build-to-suite facilities, distribution centers and others.  

> “Prices for industrial real estate has more than doubled since 2019 in the Greater Vancouver Area. The average price for industrial land is ranging between $5M -$6M per acre."

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Resources used: 
-https://www.doorloop.com/definitions/industrial-real-estate
-https://www.prologis.com/industrial-real-estate
-https://www.vts.com/blog/the-8-types-of-industrial-properties

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Did you know that industrial real estate has lower vacancy rates than other types of real estate?

What Are The Types Of Industrial Real Estate

## Why invest in Industrial Real Estate?

The industrial asset class is a critical component of the global supply chain that keeps the world's goods moving from makers to markets and then to end use consumers, often located near major transportation routes in order to facilitate the shipping and receiving of goods. It is one of the most safe and risk adjustable investments on the real estate market due to its ability to adjust to a different economic situations and consumer trends. Furthermore, industrial real estate is typically less impacted by economic cycles, meaning investors can expect steady returns over time.  Additionally, industrial real estate has a low vacancy rate, meaning that investors can usually expect a steady stream of tenants.

## 1. Long-term Leases

Industrial real estate typically has long-term leases, providing investors with a steady stream of income. 

## 2. Low Vacancy Rates

Industrial real estate has a low vacancy rate, meaning investors can typically expect a steady stream of tenants. 

## 3. Income Stability

Industrial real estate is typically less impacted by economic cycles, meaning investors can expect steady returns over time. Everything that you see around yourself was either produced, stored, distributed through industrial facility.

If you are ready to expend your investment portfolio and see how our team can help you. 

[Contact us today and let's get started!](https://focusedindustrial.com/contact-us)


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Learn about Industrial Real Estate advantages in constantly changing Commercial Real Estate market. 

Did you know that industrial real estate is one of the most stable real estate investments with a higher return yield?

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