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How to Categorize Houston Industrial Real Estate

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You can broadly classify the Houston industrial real estate sector into three main categories, warehouse industrial properties, manufacturing industrial properties, and flex industrial properties. Knowing about the basic features of these categories is crucial for every investor.

Warehouse Properties: Recent data suggests that warehouses make up more than 50% of all industrial properties in Houston. Warehouse distribution properties can be further divided into various categories depending on what percentage of the building gets used as warehouse versus distribution. However, other features of these properties are usually similar. Examples include loading capabilities, ceiling height, general design of the building, etc.

Manufacturing Properties: Manufacturing properties is the second biggest category in the industrial real estate sector, not only in Houston but also in the United States. A property is regarded as a manufacturing property when at least 50% of its area is used for carrying out manufacturing jobs.

These properties tend to feature buildings that have infrastructure to support heavy machinery and power requirements of manufacturing units. Some other features these properties tend to boast include HVAC systems, storage tanks, cranes, etc.

Flex Buildings: These properties have been named so due to the high level of flexibility they offer. They are used for a wide range of purposes. Flex buildings are primarily known to house research & development units, startups, light manufacturing units, etc. Businesses that want to have their office space and manufacturing unit under the same roof usually look for flex building.

Are you planning to invest in any of these segments of industrial real estate? If so, contact the Houston industrial real estate experts at TAG Industrial. They will provide the required guidance and help you to make the most profitable investment.


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How to Categorize Houston Industrial Real Estate

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Updated on December 19, 2020

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