What is the Difference Between Industrial and Commercial Real Estate
There are various types of properties namely residential, commercial and industrial properties. Here we are going to discuss what is the key difference between industrial and commercial real estate.
We all know that residential properties are mainly flats, condominiums, apartments, penthouses, villas, bungalows, cluster houses, townhouses, mixed developments, etc.
Industrial property is defined as a property used for the actual manufacturing of something and can be considered either a factory or plant. This includes things such as warehouses, factories, and distribution centers, etc.
Commercial property is used solely for business purposes, the actual selling of the product, rather than its manufacture — retail stores, malls, offices, shopping centers and shops, and many more.
Sometimes, when it comes to commercial and industrial properties, we may have the impression that commercial properties fall into the same category as industrial properties. However, commercial and industrial properties actually come under two different categories of property. Let us have a look at some of the various types of commercial and industrial properties that we can find across the world.
What is industrial real estate?
Industrial real estate refers to properties used to develop, manufacture, or produce goods and products, as well as logistics real estate that supports the movement and storage of products and goods. However, industrial real estate is vital because these properties are the workhorses of the industrial economy. Industrial property is used for industrial purposes.
Food, clothing, and almost every item in our home, office, or favorite retail store is either produced or stored in an industrial building at some point, so it is easy to see the gravity of influence that industrial businesses have on our everyday lives.
Industrial properties are usually located by the city outskirts or rural areas. To make the location easily accessible for transportation and delivered goods, train stations and main roads are always located nearby.
What are the types of industrial Properties?
Industrial real estate covers a broad group of properties types, including:
- Industrial land
- Industrial build to suit
- Bulk warehouse
- Flex warehouse
- Cold storage
- Heavy manufacturing
- Light assembly
- Data centers
- Industrial showroom
- Research and development.
What is commercial real estate?
The simplest way to define commercial real estate is a property that has the potential to generate profit through capital gain or rental income. Commercial property can be anything from an office building to a residential duplex, or even a restaurant or warehouse. If you can make money from leasing it out or holding it and reselling it, it’s a commercial property. In addition to modern designs, a commercial property’s location is easily accessible to the public, pedestrian-friendly, and situated near a parking space
Generally, commercial real estate can be broken down into nine major categories.
What are the types of Commercial Properties?
- Multifamily
- Office
- Industrial
- Retail
- Hotels / Hospitality
- Mixed Use
- Land
- Special Purpose
- Serviced space &Co-working office
Industrial property is one of the three main asset classes of commercial property.
Most of us are familiar with residential real estate, and what it means to invest in it, but not everyone knows a lot about commercial property. Commercial property is built and used solely for business purposes. There are three main types of commercial property: retail, office, and industrial.
WHICH IS BETTER- Commercial Property or Industrial Property?
Whilst industrial properties refer to any business related to manufacturing goods; commercial properties tend to a business that operates with the main motive of gaining profit. Industrial companies include factories and construction sites; on the other hand, commercial properties develop businesses like offices, restaurants, and retail stores. To answer which is better, it all depends on your business type and what kind of activity occurs on the premises.
Commercial and Industrial Properties in Jaipur
If you’re looking for a commercial or industrial property in Jaipur, Rajasthan you can visit our website www.industrialplot.com for the latest property availability and regular blog updates.
