Industrial Real Estate Investment Pros and Cons

I love the industrial market right now because it's super hot. Occupancies are high and rents are climbing like they haven't for nearly five decades. You can make a tremendous amount of money and demand is unbelievable.

Brokers are literally kicking down landlords doors. And so that's what's made it attractive. In addition to this, you've got pass through expenses where your tenants are literally picking up almost 100 percent of what it costs to operate that property.

But some of the cons of this category are old facilities are not equal to the new facilities.

Whether you're talking about the clear roof height, whether you're talking about column spacing, the depth of concrete or the infrastructure of the electrical service. These things can be mitigating factors, and some of those facilities may never rent at all.

In addition to that, you could have environmental concerns, and those environmental concerns can put you on the hook for millions of dollars in losses. Don't get exposed. If you like this category, you want to be careful.