Differences between industrial & commercial?

[mattinvestor]

the main differences between industrial and commercial real estate?

How about the differences with regards to investing in them? vacancy rates? fees?

[Orkibi]

differences between industrial and commercial real

Hi Mattinvestor,

it is like asking "whats the different between Orange and Fruit?" = Orange is a fruit.

Industrial is a sector / type of property within the Commercial property sector, same like a residential block of flats if still comes under residential property investing and the Residential Tenancy Act still governs.

In the Commercial property sector you have Industrial, Office, Tourism, and Retail etc. (which is probably what you referred to?)

in general there is no different with which Lease document to use when signing a tenant (which is a commercial property lease) BUT there is different of risk level, achievable yields, market condition within the sector economy that can influence the Deal.

[mattinvestor]

OK. I understand that industrial is a subsector of commercial.
But what is involved with industrial - is it mainly factories, warehouses?

[JonnoM]

Industrial can be factories, warehouses and industrially zoned land.
Commercial is generally office and retail buildings.

You need to be very wary of what you are doing when investing in Commercial property as there are a lot more things to think about. If you buy a property in the wrong spot, it can sit vacant for 6-12 months very easily. In saying this, if you buy a property in the right spot, it is not uncommon for tenants to stay for 5, 10, 20 or 30 years at the one place with annual rental increases.

Also keep in mind that finance is more difficult to obtain for commercial and industrial properties.

I hope this helps somewhat!

[bruynjustin]

Dont pay too much

the main differences between industrial and commercial real estate?How about the differences with regards to investing in them? vacancy rates? fees?

The tips you provided are really good for an investor and he should always keep it in mind while investing in the property. You must also take care of this beautiful tip that Do not Pay too much money for your property.

[vrahul1984]

Industrial can be factories, warehouses and industrially zoned land.
Commercial is generally office and retail buildings.

You need to be very wary of what you are doing when investing in Commercial property as there are a lot more things to think about. If you buy a property in the wrong spot, it can sit vacant for 6-12 months very easily. In saying this, if you buy a property in the right spot, it is not uncommon for tenants to stay for 5, 10, 20 or 30 years at the one place with annual rental increases.

Also keep in mind that finance is more difficult to obtain for commercial and industrial properties.

I hope this helps somewhat!

very rightly said ! you can have more information at - nationmaster(dot)com/n/

[saratiku]

Industrial is not a sub sector of commercial. It means, it include 'Industrial Development Area', land allotted only for companies, production of any substances, warehouses, industries, etc.
In commercial means, it includes land for shopes, offices, stores, small warehouses, etc.
Now you can differentiate it.

[John the builder]

industrial also implies a heavy use

so wear and tear may be extreme, think heavy vehicles on that carpark and impact damage from lifing and dropping heavy mainteance can be a big issue

[Wayne]

industrial also implies a heavy use

so wear and tear may be extreme, think heavy vehicles on that carpark and impact damage from lifing and dropping heavy mainteance can be a big issue

Tenants responsibility if the lease says so - so not your problem.

[John the builder]

if the lease says so .................
most leases (10.1 (a)ADLS standard lease agreements?) do not require tenants to cover "reasonable use and normal wear and tear" and what is normal will be different for industrial and commercial

[Wayne]

Fair point

[Beano]

industrial also implies a heavy use

so wear and tear may be extreme, think heavy vehicles on that carpark and impact damage from lifing and dropping heavy mainteance can be a big issue

Generally its not the heavy vehicles that cause the asphalt and chip seal damage but the
1 turning of vehicles on the surface (hence drive through sites have less wear)
2 forklifts have a lot of pressure on the small wheels cause a lot damage