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Commercial Industrial Sector

Manufacturing, R&D, storage and distribution buildings.

Since 1951

Commercial Real Estate

Commercial real estate is any non-residential property used for commercial purposes. Commercial real estate consists of office, industrial, retail, multifamily, hotels, land, and special purpose properties.


BY Austin Sharp, CCIM   |  

Industrial Sector Overview in Amarillo, TX

The commercial industrial sector is the backbone of commercial real estate investments. The industrial sector for one thing, always will be popular for a variety of commercial real estate investors. From the popular light assembly industrial space to flex warehouse sites, or specialized commercial property to single-tenant net lease sites.

Industrial Properties as Investments

Some industrial properties are better investments than others. Unfortunately, heavy manufacturing sites are difficult to transform for another use. Machinery serving a specialized manufacturing purpose that required large amounts of space. These often have a single tenant lease. Bulk warehouse space is specialized commercial property and not easily converted and can have a lot of tenant turnover. Light assembly industrious space converts into office space or another commercial use. These facilities are attractive to small businesses that don’t require a lot of foot traffic. Finally, flex warehouse sites are flexible properties that often provide a mix of storage and office space for businesses who make or move things. Often called, “flex” office space, light assembly and flex warehouse sites can be a solid commercial real estate investment option.

  • Manufacturing: Commercial properties used for the transformation of materials into consumer or manufactured goods. These properties provide less than twenty percent office space which tags them for commercial use.
  • Warehouse: A facility primarily used for storage and/or distribution of material goods. These facilities have less than fifteen percent office space. This category may include special purpose facilities, such as cold storage for food.
  • Flex Office Space: These industrial mixed use spaces give occupants flexibility in how the building is used. Appropriately referred to as flex/tech space, moreover, these properties are office/industrial hybrids that can have 30-100 percent office finish.

Different Footprints

Industrial commercial real estate properties range from smaller sites, often called “flex” space or “R&D” properties, to larger sites used for heavy manufacturing. These properties are usually listed with height specifications (height from the floor to the lowest-hanging overhead barrier). There should be information concerning if docks are included with the industrious property and whether they are grade level (street level for drive-in convenience), semi-docks (24″ for pickup or delivery truck), and full-docks (48″ for a semi-truck).

Locating Industrial Sites

In this situation, manufacturing sites require a lot of acreage for storage, low-density parking, and ample room for truck maneuvers. It is not common for these properties to be listed with properties in the commercial business district. Although some industrious properties contain flex warehouse and office buildings, it is unusual to see them categorized as anything other than use.

Mays Provides the Background Comps

Mays provides vital information to help you make an informed decision regarding your commercial real estate investment. We give you useful data about the construction of the property, such as the year the property was built, if there have been any updates to construction, as well as unit sizes. We provide ratios of rental and vacancy rates to ensure the location is a proper investment for potential buyers. In addition, Mays locates information about licensing and operating expenses of the property and looks out for possible competition in the surrounding area. Along with this, we provide a variety of reports:

  • Market Reports: Firstly detailed research on market shifts, changes in technology, and the economy near the property.
  • Submarket Reports: Data on specific submarkets or neighborhoods within a specific metro market.
  • Metro Reports: Historical trends that are a foundation for any precise market analysis.
  • Rent Comps: Rent comps help investors evaluate property performance as compared to its competitors.
  • Sales Comps: See properties similar to the one you want and find out what they have sold for before making financial decisions.
  • New Construction Comps: All in all stay informed about upcoming, completed, or current projects that are under construction in the area they you are looking to purchase property.

Information and Resources for Mays in Amarillo, TX

For more information about the resources we offer commercial real estate property investors, see Mays Market Reports and Mays Property Reports. Or if you need specific information or have a question, visit our Question and Answers or Contact us.

Mays commercial real estate makes purchasing industrial property as hassle-free as possible. You put us in the hunt and we will help you make the best deal possible. Whether you are buying or selling your industrial property, Mays is your trusted partner. Contact us today.


Sources

Investinganswers.com. (2018). Commercial Real Estate Definition & Example | InvestingAnswers.

Williams, S. (2018). What is Commercial Real Estate? The Definition of CRE.

CrowdStreet. (2018). The Definitive Guide to Commercial Real Estate Property Types – CrowdStreet.