Industrial real estate is one of the major types of income-producing commercial real estate. Other types include offices, retail and hotels. Industrial real estate includes buildings used as factories, assembly plants, warehouses, and logistics facilities. A crucial part of the global supply chain, industrial real estate serves a vital function in enabling commerce and industry and ensuring the efficient flow of goods from makers to markets.

Industrial Real Estate Investment Trusts (REITs) are a popular form of ownership for industrial real estate. These for-profit companies own and manage industrial real estate buildings and rent them out to tenants. Many REITs are publicly held, meaning investors can buy and sell shares in them, as they would with mutual funds or stocks. REITs aim to provide a return through generating income and long-term capital gains. REITs have a unique legal structure under which they must pay out more than 90 percent of their taxable income as dividends to shareholders. Industrial REITs often focus on a particular type of property – for example, logistics and distribution facilities. Others might focus on factories or health care facilities. Industrial REITs offer investors liquidity – i.e. the ability to buy and sell shares with ease and transparency.