In recent years, the demand for industrial real estate has skyrocketed in response to a burgeoning e-commerce market. Many corporate entities have responded to the pandemic by investing in commercial warehouse and industrial space to account for a spike in online shopping. As such, industrial real estate (or IRE for short) and warehouse construction are both in unprecedented demand.
This is especially true in coastal markets, such as Southeast Volusia. In such markets, vacancy rates for IRE have dropped below 1%. When investing in industrial space, the question quickly transitions from “how do I acquire IRE?” to “how can I expand my IRE?” While acquiring industrial space for your company can prove costly and arduous in this market, the benefits more than justify the effort. In this article, we break down the benefits of finding your industrial real estate right here in Southeast Volusia.
Appreciation Rates Trending Upwards
In the two years prior to the onset of the COVID-19 pandemic, investments in IRE from the institutional investment community increased by 95%. Then, as the pandemic set in, demand for e-commerce grew exponentially and this trend continued to accelerate upwards. IRE investment allocations increased another 10.6% in 2020 and 10.9% more still in the first half of 2021.
What this means for the immediate future is that the value of IRE shows no signs of slowing down. Demand is still trending upwards, which is also driving up land and building prices. Purchasing IRE means more than just acquiring invaluable production space now – it also means having property on hand that will appreciate in value over the coming years.
Proximity to Cities and Transportation Hubs
Higher demand for e-commerce and direct-to-consumer business has placed a greater emphasis on the need for proximity to densely populated areas, as well as talented workforces, accessible transportation, and scale. These factors drive not only the success of a business, but also the value of its IRE. In Southeast Volusia, all these things are plentiful, making our region of the country a desirable location for manufacturing and technology. This includes proximity to the ”crossroads of Central Florida” – Interstates 95 and 4 – as well as significant railroads, ports, and airports.
Stable Income Generation
Relative to residential leases, industrial leases often have much longer durations. In some cases, they can be anywhere between three to 10 years. In other cases, they can extend up to 25 years. For this reason, IRE is sure to produce a reliable avenue of income for years to come. Plus, with growing demand for expansion of industrial centers, owning a property may entice investors to funnel capital into your business.
For these reasons and many more, industrial real estate has never been a more precious commodity in Southeast Volusia. Finding your industrial site in this market could amount to long-term success and profitable business ventures, even despite the difficulties you may encounter to get here. Partner with Southeast Volusia Manufacturing and Technology Coalition for assistance finding the perfect industrial real estate for your business – we are here to streamline the process and assist you with your move to our region of Florida.