An Introduction to Industrial Real Estate Investing
Matthew J. Gorelik founded and serves as chairman of TownshipCapital, LLC, a multifaceted investment firm headquartered in Los Angeles. Matthew Gorelik invests in real estate across the United States, focusing on properties ranging from multifamily and office to retail and industrial.
Industrial real estate refers to a subset of commercial real estate that involves industrial operations of many different types. In some cases, industrial real estate investors choose specific industries based on their predictions about growth over the coming years. Industrial real estate also offers considerable flexibility for investors, who can convert warehouse space from one industry to another with minimal hassle.
Within the commercial real estate sector, industrial real estate features some of the longest lease terms, ranging anywhere from three years to 10 or more. This translates to reduced turnover for property owners, allowing for stable and more predictable incomes. In recent years, large percentages of industrial properties have been converted to other types of commercial real estate, such as restaurants or nightclubs. In light of these changes, the dwindling supply of industrial real estate space can provide a boon for investors who hold industrial properties in affected regions.