Renting and leasing factory, warehouse and industrial spaces can be a lucrative business venture for all parties involved. Industrial Real Estate however is not for the faint of heart as complications can and often do arise.
uTenant not only provides you with a platform which connects landlords with tenants, but we also help you navigate these rough waters, which oftentimes require extremely specialised experience and expertise.
So what is Industrial Property?
Industrial property can take a range of forms and is one of the three main asset classes of commercial property. Put simply, it is property that is used for industrial purposes, but can cover a large range of business types. The typical sizes vary greatly, but are most often broken down as small, large and enormous.
- Single or double-storey buildings such as storage warehouses, garage shops and research laboratories, cover small industrial properties. These may or may not include office space within the building as well and are usually very flexible in use.
- Large industrial properties are primarily used as shipping companies, factories and larger warehouses spaces. These properties are ideal for manufacturing, distribution or large-scale storage.
- Finally, at the upper end you have enormous industrial properties. Visualising Amazon’s Fulfilment centres or the Boeing Factory will give you a rough idea of the scale in question.
As the industrial real estate and property division of the market has becoming increasingly technological and specialised, uTenant platform was built to assist and mitigate some of these issues.
Our platform uses an intuitive algorithm which allows us to perfectly match suitable landlords with prospective tenants. Once we match you up with your ideal business rental partner, we can provide further valued advice and assistance to both landlords and tenants.
What are the benefits of Industrial Real Estate?
The primary advantage of investing in industrial property come in terms of higher rental incomes. Industrial yields are normally valued per square meters. Furthermore, they can offer yields of 8% compared to 4-5% yield on residential property.
On the tenant side, the right work space and location can remove numerous time consuming and costly roadblocks, which in turn reduce profits. Finding your perfect property in an ideal location can offset lease costs by cutting down on things like distribution costs and allowing around the clock operation thanks to industrial zone regulations.
Longer Term Lease
Industrial tenants are generally more willing to sign lease agreements for longer periods. In some cases, these agreements last up to ten years or have an auto-renewal clause. These provide the investor with much greater security than a typical residential lease.
Furthermore, a secure lease allows the tenant to focus on growing their business, rather than spending time searching for and moving locations every few years.
With industrial property, things generally get done more efficiently on both ends of the spectrum. In most cases, the tenant will maintain the property to a high standard as the appearance of the building reflects on their brand and business.
As the property is treated like a home for the business over a longer period of times, the tenants tend to have more control in what they can change on the property, though it is smart to discuss this upfront with the land owner.
uTenant developed a streamlined process of linking vacant warehouse and factory spaces offered by registered landlords to prospective tenants. That means that whether you are the tenant or the landlord, we have found a way to provide you with total control and transparency. Our platform is free for tenants and landlords can list properties for free. When an agreement is reached between the two parties, we charge a typically lower fee than traditional real-estate agencies.
uTenant is also confidential and doesn’t require a middle man. This means no real estate agent fees and the ability for you to freely negotiate directly with or without assistance.