Florida real estate investors may turn to industrial properties

On Behalf of | Mar 29, 2021 | Real Estate Transactions | 0 comments

Commercial real estate investors appear to have moved on from vacant shopping malls, hotels and office spaces. Industrial buildings may offer a safer return on investment as major retailers shift from in-store to online shopping portals. 

As reported by the Tampa Bay Times, leasing properties to large corporations or research centers may offer a more favorable income source. Mixed-use commercial buildings may no longer produce the same returns they once brought their owners. 

Developers may prefer investing in urban business parks

Developers buying and building industrial spaces may find themselves eligible for tax incentives. As noted by the Miami Herald, warehouse, research and manufacturing properties attract large corporations that also provide high-paying job growth. 

An industrial business park situated in a growing urban area may command higher rental rates. Offering a mixed-use framework of work and living spaces may prove even more attractive. Developers, however, may need to take into account the possibility of creating potentially harmful spaces. For example, by combining residential condominiums with a research lab that may use hazardous chemicals. 

Property owners may stand to gain by converting from commercial to industrial zoning

As a greater number of investors turn toward industrial properties, they may seek ways to convert an existing building into warehouse or storage units. Land originally designated for commercial use, however, may require a property owner to first submit an application for rezoning. 

Lease or purchase agreements involving warehouse, research and distribution centers may serve as a more practical approach for generating income and provide unrealized potential. It may, however, require some careful planning or rezoning for real estate investors to move forward.