Real Estate Investment Trusts (REITs) that specialize in industrial land and development assets focus on acquiring, managing, and developing properties used for logistics, manufacturing, distribution, and storage. These REITs cater to demand driven by e-commerce growth, supply chain expansion, and light industrial production. They vary in strategy, with some holding income-generating assets, while others invest in land development or build-to-suit industrial projects. Below are five main types of REITs that concentrate on industrial real estate.
1. Logistics and Distribution REITs
- Focus on warehouses, fulfillment centers, and last-mile delivery hubs.
- Typically acquire land near major transportation corridors, ports, and airports.
- Invest in both large-scale logistics parks and urban infill sites.
- May develop or acquire facilities leased to e-commerce, retail, and 3PL tenants.
- Often involved in build-to-suit developments for specific logistics users.
2. Light Manufacturing and Flex Industrial REITs
- Own properties used for assembly, fabrication, and small-scale production.
- Invest in multi-tenant facilities or subdivided industrial condominiums.
- Assets often feature a mix of warehouse and office space with flexible layouts.
- Focus on regional industrial zones that support small to mid-sized enterprises.
- May engage in adaptive reuse or land redevelopment for modern industrial use.
3. Industrial Development REITs
- Specialize in ground-up development of industrial parks and facilities.
- Acquire raw or entitled land, manage infrastructure improvements, and build to lease or sell.
- Often form joint ventures with institutional investors or developers.
- Target fast-growing logistics corridors, intermodal zones, or special economic areas.
- Monetize assets through leasing or disposition upon stabilization.
4. Cold Storage and Specialty Industrial REITs
- Invest in temperature-controlled warehouses, pharmaceutical storage, and specialized logistics hubs.
- Require customized buildings and strategic land acquisition to meet infrastructure needs.
- Often serve food processing, biotech, or medical supply chains.
- Development includes high-capital upgrades, energy systems, and location-specific planning.
- These REITs may pursue build-to-suit or sale-leaseback structures.
5. Land-Focused Industrial REITs
- Concentrate on owning and entitling industrial land, especially near high-growth metro areas.
- Generate returns through land value appreciation, rezoning, and phased parcel sales.
- May lease raw land for interim industrial uses such as storage yards or fleet staging.
- Common in markets with land constraints or development bottlenecks.
- Often partner with vertical developers or municipalities to bring land to market.
