Hot Investment Opportunity: Industrial Real Estate
Across the nation, returns on industrial investment are growing more and more every year, and what many don’t know is that Boulder is uniquely competitive in the industrial market. The hottest real estate investment opportunity is right here in your backyard!
A changing economy = changing real estate opportunities
Think about the last time that you ordered something to be delivered to your home. Was it a week ago? And the most recent time you ordered something before that? Chances are, in the last month, you’ve joined the 79% of Americans who ordered something online that was delivered to them. With the quickly growing logistics and warehouse industry booming to address a demand from companies like Amazon and Flexport in addition to the usual suspects (USPS, FedEx, Purolator), industrial space is in higher demand than ever. Amazon itself is a trillion dollar company, and its operations rely so heavily on the availability of industrial space that investing may as well be the second gold rush to Colorado.
Investment is like running a business, and less like being a landlord
Technically, as the owner or lessor of commercial space, you are the landlord. Needless to say, the needs of businesses and occupants of industrial spaces vary from that of a home or condo. Emergencies outside of business hours are few and far between, and when you go home, so do your tenants. Forget the days of chasing down tenants for rent- commercial leases are more restrictive to ensure that as an investor in industrial property, you’ll be protected against any misconduct.
Why Boulder is ideal for industrial real estate investment:
Boulder and its surrounding areas have the second most “flex space”, known as the various properties that can be used for office and industrial purposes, in the United States, right after San Jose, California. It is a prime area to invest in since space is plentiful (though certainly restricted) and the prices are much more competitive than those found in the Bay Area. Not to mention the fact that Boulder’s start-up scene is all the buzz right now, making multi-use spaces and coworking spaces more popular than ever.
The date tells the story too. According to real estate information company, CoStar:
Sales volume in 2018 was nearly $100 million above any other year on record outside of 2017, as investors remained especially active for a second straight year. Two of the three largest single-asset deals on record closed in 2018.
Meanwhile, our team at Market Real Estate closed over 82,000 square feet of industrial property in 2018, a record high for the Boulder-based team! The result is over $62M volume for that same year. The numbers say it all: industrial space is in demand, and Market is bringing the supply to you!
See what all the buzz is about for yourself. Our door (and inboxes!) are open for questions, concerns, and inquiries.