What is industrial property?

Industrial property is a class of real estate like residential, commercial and retail—just a bit less glamorous. It doesn’t command the same center-stage attention as other types of real estate like residential developments or commercial officer towers. Industrial property includes:

  • Storage facilities
  • Distribution facilities
  • Manufacturing facilities
  • Production facilities
  • Research and Development facilities

Industrial property is a key link in the global supply chain and a sought-after investment that generates strong and predictable cash flows.

Without warehouses and logistics distribution centers, which are key industrial property types, the global economy couldn’t function. Strategically located industrial property with easy and efficient connections to vital transit routes makes trade, e-commerce, and consumption possible.

 

What are the major factors that drive demand for industrial property?

First, there’s consumption. Industrial property is essential to the movement of goods across geographies to end consumers. Then there’s trade. It is a key component of trade everywhere—helping to ensure the efficient flow of goods from makers to markets. Rising volumes of global and domestic trade are possible because of the interconnected web of manufacturers, shippers, truckers, distributors and retailers. As companies reshape their supply chains to compete in the 21st century, they turn to high-quality, well-located, efficient industrial properties for operating leverage and competitive advantage.

 

Are e-commerce companies big users of industrial property?

Yes. Simply put, no e-commerce company can function without the right industrial property. They are not just quiet places to store goods. Industrial properties are fulfillment and return centers. They are the launching pads for direct-to-consumer delivery. In many instances, the last mile begins at an industrial property.

 

Where are industrial properties located?

Industrial property can often be found on large plots of land near highway junctions, rail terminals, airports, seaports, and other key transportation hubs. But as e-commerce continues to grow, it is becoming more common to see industrial properties occupying smaller footprints near large population centers – or even in multi-story locations in large cities.

 

Examples of Prologis Industrial Properties

The image shown is LEED certified warehouse Prologis Beacon Lakes , located in Miami, United States.

Prologis Beacon Lakes

Miami, Florida

Part of a 478-acre upscale industrial park in Miami, this 189,906 SF (17,643 SQM) LEED Silver-certified warehouse is divided into four units. The...

The image shown is CASBEE certified warehouse Prologis Park Amagasaki 3, located in Amagasaki, Japan.

Prologis Park Amagasaki 3

Amagasaki, Japan

Designed to be sustainable, this four-story, 425,000 SF (39,500 SQM) warehouse holds a CASBEE “A” assessment. Sustainable design features include a...

Prologis Georgetown Crossroads

Prologis Georgetown Crossroads

Seattle, Washington

This modern multistory warehouse by downtown Seattle, coming in 2018, is setting the standard for the future of urban industrial real estate.

The image shown is logistics warehouse, Beijing Airport Logistics Center II, located in Beijing, China.

Beijing Capital Airport Logistics Center II

Beijing, China

China's first multi-story airport logistics center, two buildings at the Beijing Capital International Airport, is used by its biggest e-commerce...

The image shown is LEED certified warehouse Prologis Port Reading , located in Port Reading, United States.

Prologis Port Reading

Port Reading, New Jersey

This 280,384 SF (26,049 SQM) LEED-certified warehouse, built with sustainable design features, is part of a premier 2.75 MSF master-planned, fully...

The image shown is logistics facility, Bergheim DC1, located in Bergheim,Germany.

Bergheim DC1

Bergheim, Germany

A 441,300 SF (41,000 SQM) logistics facility and administrative center with LED lighting and an efficient heating system serving as the European...