The Denver industrial property sector is poised to grow at a steady pace, giving investors a lucrative opportunity to make the most of this market boom. The long-term lease period, increased appreciation and high-value rental yields are the primary factors keeping the industrial real estate market afloat. Although this market lacks the so-called glamor, it assures numerous advantages when you buy property in Denver.
Let’s understand if Denver’s industrial real estate is a good investment option.
One of the topmost reasons why you should consider investing in industrial real estate is its potential to generate higher rental yields. The current asking rent has steadily increased in the past 12 months, influencing the average rental yield.
The reason for higher yield is that industrial property is leased on the triple net, i.e., the tenant pays for the monthly rent, maintenance, insurance, taxes, and more. The property owner is responsible only for the mortgage amount and other common maintenance fees. This enables you to drive a higher yield on your investment.
More Flexibility or Variety
Non-industrial properties are typically built for a particular purpose. For instance, an office building can be used for office purposes only. On the other hand, industrial spaces can easily be adapted to a wide range of uses. Additionally, there are varieties of industrial properties, which you can consider for investment.
This flexibility and a broad range of industrial property list in Denver make it an attractive investment option.
Low Cost of Maintenance
All types of properties need a certain level of upkeep; however, industrial buildings are low-maintenance for the property owner. Since the spaces are leased out on a triple net, the responsibility for repairs and maintenance lies with the tenant. Long-term leases and less tenant turnover further mean that the property owner does not require renovating the space too often.
Another advantage of investing in industrial properties is they come with long-term leases, typically around 3-10 years or even as long as 25 years. Additionally, the tenant turnover rate is also lower. Hence, you can be assured of a steady flow of income in the long term.
The Bottom Line
There are several reasons why it is worthwhile to buy property in Denver, especially industrial spaces. The market is less vulnerable to market fluctuations, provides long-term cash flow, and will typically appreciate. TAG Industrial is a top real estate agent that provides a comprehensive industrial property list in Denver. We assist you in selecting a suitable investment option based on its type, location and long-term value-earning potential.