What $1 Million Can Buy in Industrial Real Estate
Industrial real estate remains one of the strongest investment opportunities following years of dramatic growth in e-commerce.
E-commerce drives a lot of need for distribution and warehouse space. Rents continue to rise while vacancy stays around historic lows. And that includes older, smaller industrial properties.
But buying such a property may require creativity and patience if you decide on an empty one. Or you may see one that works for a use other than industrial because of its location.
Here’s a sample of what you can buy for about $1 million:
319 N. Kedzie Ave., Chicago – $1 million
The empty 20,000-square-foot building is in East Garfield Park area of Chicago’s West Side and several blocks from Garfield Park, a 172-acre historic park.
There are six additional lots near the building priced at $110,000 per lot. The 1950s-era building also is close to a stop on Chicago’s elevated train, known as the “L”, as well as a Metra commuter train stop.
East Garfield Park has started to see some revitalization arrive as Chicagoans look for affordable places to live on the West Side.
2002 E. 10th St., Jeffersonville, Indiana – $975,000
This 11,816-square-foot building is fully leased. Jeffersonville is across the Ohio River from Louisville, Kentucky.
It’s along the city’s primary corridor. Last year, city planners created an investment plan to invigorate development along 10th Street that matches downtown's revitalization. Now there is new retail, single-family and multifamily homes, office and hotel development underway.
The 41-year-old building is listed with a 6.55% cap rate, the annual return an investor can get by buying the property.
1980 Grant St., Hollywood, Florida – $980,000
The building was constructed in 1961 and sits empty in an industrial area near downtown Hollywood, 20 miles north of Miami. A dental equipment manufacturer previously filled the space.
Rental space measures about 8,640 square feet but it also has a 2,440-square foot mezzanine.
According to CoStar data, vacancy in that area sits at 3.9% and rents have been on the upswing.
