Investing in Industrial Real Estate: The Onshoring Opportunity and The Role of Commercial Industrial Properties
The trend of onshoring is causing ripples in the investment waters, particularly in the industrial real estate sector in the State of Texas. As companies increasingly bring their operations closer to home, the demand for domestic industrial spaces like warehouses and manufacturing facilities rises. This presents a golden chance for investors to diversify their portfolios, and where better to start than with the expertise of Commercial Industrial Properties (CIP)?
Robby Eaves, CCIM, Principal at CIP states that “for the past year our firm has been actively engaged in acquiring land for an industrial park for suppliers to a large semiconductor project in the Central Texas region and are experiencing firsthand the activity level and economic impact of the ‘onshoring’ movement.”
Onshoring: Navigating the Industrial Revolution 2.0
The return of previously outsourced operations to a company's home country, or onshoring, has been spurred by a variety of factors, the largest of which are global trade tensions with China and the weaknesses in the global supply chain that the Covid-19 pandemic exposed. Other factors driving this trend include reduced transportation costs as well as a heightened emphasis on quality control by manufactures. These developments directly lead to an increased demand for local industrial facilities.
Harnessing the Power of Commercial Industrial Properties
As the shift towards onshoring becomes pronounced, partnering with experts in industrial real estate can be a game-changer. This is where Commercial Industrial Properties shines.
Industry Expertise: CIP brings with it years of experience in the industrial real estate sector. They understand the nuances, the shifting demands, and the best regions poised for growth.
Tailored Solutions: Every investor has unique needs and goals. CIP offers bespoke solutions to ensure that your investment aligns perfectly with your portfolio's diversification strategy.
Market Insights: With their finger on the pulse of the market, CIP can provide valuable insights on emerging domestic manufacturing hubs, supply of new construction coming on line, market lease rate trends, and more.
Network: CIP's vast network of contacts—from local economic bodies to infrastructure experts—can be invaluable for investors looking to capitalize on the onshoring trend.
Facility Modernization and Management: Beyond just identifying the right properties, CIP can guide investors on modernizing older facilities or repurposing them to meet current industry standards. Their management expertise ensures that these properties remain prime assets in an investor's portfolio.
“Our relationships with local Economic Development contacts, as well as knowing who the best civil engineers and architects are, have proven invaluable to our client who has tasked us with site selection for their datacenter project coming to Central Texas,” according to Brian Smith, CCIM, and Associate at CIP.
Reaping the Rewards
By integrating the expertise of Commercial Industrial Properties into your diversification strategy, you stand to benefit in numerous ways:
Seamless Diversification: The transition to industrial real estate becomes smoother, reducing potential pitfalls.
Optimized Returns: Leveraging CIP's insights can lead to better property selections, translating to higher returns.
Future Growth: With CIP's guidance, you can position your commercial real estate investments for potential growth, ensuring your investments are not just timely but also future-proof.
Conclusion
The onshoring wave is an opportune moment for investors to diversify into industrial real estate. Commercial Industrial Properties, with its unmatched expertise and resources, can be the trusted team for those looking to become more active in this space. As the world of industry transforms, ensure you're not just a spectator but an active player reaping the rewards.