While both terms are sometimes used as synonyms, warehouse space and industrial space are two separate concepts. Follow along to learn more about the differences between these two types of properties.
Warehouse Space vs Industrial Space: What Is the Difference?
In everyday conversation, people sometimes use “warehouse space” and “industrial space” interchangeably. However, there is an important difference between these two terms.
Warehouse space refers to properties dedicated to storing goods, while industrial space refers to real estate assets where a combination of manufacturing and administrative activities can take place.
Warehouse Space: What You Need To Know
Simply put, warehouse space is a property whose main purpose is to house an inventory of items and facilitate its distribution.
While traditionally each company managed their own warehouses, warehouse space constraints have contributed to the creation of innovative solutions such as co-warehousing or flexible warehousing, where companies can lease sections of a larger warehouse according to their needs.
With the explosion of e-commerce, warehouse space has taken on a new importance. Having a series of strategically located warehousing hubs is essential to the success of any company looking to succeed in the e-commerce space.
Industrial Space: What You Need To Know
As the name suggests, industrial space (also known as industrial real estate) is a property where industrial activities can take place. This includes, of course, storage, but also other functions such as:
- Assembling/mounting components
- Woodworking
- Welding
- Packaging
- Painting
- Repairing
- Dismantling
- Finishing
- Administrative/office work
- Among others
Even though there are differences between warehouse space and industrial space, these two categories have something in common: Both are in high demand, even in the face of adverse economic circumstances.
This is especially true for Southern California, where the Inland Empire is the U.S. region with the lowest industrial vacancy rate at just 1.1%.
To learn more about the industrial and warehouse real estate landscape in Southern California, be sure to check out our previous blogs, “L.A.’s Mansion Ta and Its Impact on Commercial Real Estate,” and “US Manufacturers Are Reshoring Their Production Lines.”
Disclaimer: This material is for general information and educational purposes only. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
SoCal CRE Team: The Experts in Southern California Industrial Real Estate
At SoCal CRE Team, we specialize in industrial real estate solutions in the most sought-after Southern California markets such as Los Angeles, Orange County, Riverside, Anaheim, and more.
Interested in learning more? Contact us today by telephone (714) 456-0500 or email at gary@ashwillassociates.com.