While the increase in property prices for industrial real estate makes it increasingly difficult to find a small factory or warehouse below half a million dollars, that same shortage is now raising rents and lengthening lease periods.
As the editorial in the latest Industrial Property News shows, rent free periods fell from 2016 and are continuing to fall.
Rent free periods are offered as an enticement to tenants to lease your property when available buildings are plentiful and competition for tenants is high. If stock is low and tenant demand is high, this enticement is not necessary. The flow on factor means rents are higher for the tenant and they typically lock in a longer lease period – meaning a stable income for the investor and a better return on your investment.
It’s not too late to purchase a small factory or warehouse and earn net passive income for your future. Come to my next workshop and learn how.