Industrial & Logistic Valuation

Industrial & Logistic Valuation

Industrial and logistic valuation evaluates the worth of industrial and logistical properties. These properties include factories, warehouses, and other buildings used for production, distribution, and storage.

The process of industrial and logistic valuation is typically conducted by appraisers who are experienced in this type of property valuation.

Industrial and Logistics Valuation Sector In Dubai

The Industrial and logistics valuation in the real estate sector in Dubai has flourished over the last decade. It is now one of the growing commercial real estate industries, with further growth expected. Many companies like Land Sterling have risen to become the market leaders in industrial and logistic valuation in Dubai.

As labour and transportation barricades continue to fall and global trade expands, new trends will likely alter supply chain management further.

Evolving technologies like artificial intelligence, driverless cars, drones, robotics, and 3D printing all promise to have a massive effect on the geography and type of logistics resources available.

In addition, logistics real estate will continue to undergo a significant transformation, especially in transportation and manufacturing. Consequently, by 2019-2022, industries such as the e-commerce sector rapidly grew by roughly 23%.

Services Offered In the Industrial and Logistics Sector

Property Development
Property development, also known as real estate development, is the process of developing buildings and land to enhance their value. Whether it’s a home or an office building, these properties are easily valued and can be sold thanks to this industrial valuation service quickly.

It’s a valuation process that consists of many different aspects, such as building a property from scratch, remodelling an existing property, and converting properties to serve a different purpose than they did before.

Transaction and Consulting
Transaction and consulting services are third-party assistance from professional or corporate finance firms. They assist you in handling all of the tasks associated with your transaction data from start to finish, acting as your business’s support system, and meeting expansion requirements.

Occupier solutions
Occupier Services incorporates service lines such as Enterprise Clients, Client Experience, Strategic Advisory, Marketing Services, Lease Management, Transaction Management, and Project Management.

Investment Management
Investment management is the ability to handle financial assets and other investments, not just the buying and selling of them. Management entails developing a short- or long-term strategic plan for obtaining and getting rid of portfolio holdings.

It can also include financial planning and tax services, among other duties. In addition, investment management services entail asset allocation, financial analysis, investment strategies, monitoring of existing investments, and portfolio strategy and implementation.

Reasons Why You Should Invest In Industrial Real Estate

Wider Diversity
Industrial property has multiple potential uses, giving it more capability to fluctuate with changing market demand.
Furthermore, a single industrial property can serve multiple functions, allowing it to appeal to various companies. For example, a large warehouse facility can be divided into separate storage, production, and workspace.

Long-Term Income Opportunity
A property that stays inhabited benefits the investor for various reasons, including the promise of consistent, long-term income.

Because of the severity of the consequences and volume of moving an industrial business from one location to another, industrial leases tend to be on the longer side, and leaseholders are significantly more likely to renew their lease when the opportunity arises rather than packing up and moving.

High Demand
Due to their adaptability, industrial properties can sit vacant for far less time than other types of commercial real estate because every product consumers encounter has passed through an industrial property. Hence the demand for these properties remains high.

This does not appear to be changing since the United Arab Emirates government is concentrating on growing the nation’s economy by lessening consumers’ reliance on income from oil and gas.

Approximately 5.5 % of the UAE’s total gross domestic product is produced by real estate activities, necessitating an even greater demand for broader distribution centres.

Less Maintenance and Running Costs
Possessing a commercial property can be both expensive and time-expensive. Throughout ownership, you’re required to do the refurbishment, repairs and renovations.

However, industrial real estate requires far less maintenance than other sectors. Since most industrial properties are large, open spaces with thick concrete floors and high, exposed ceilings, the need for flooring, sound insulation, heavy fixtures, and other extra costs is decreased or eliminated.

Quickly Access Cash
Because of the constant high demand for this type of commercial estate, you’re often less likely to be unable to make an investment or sale.

Industrial properties are often on the market for brief periods. In turn, it makes them a much easier way to liquidate than other sorts of property investment.

Conclusion
The analytical method for assessing the current value of an asset or a firm is known as valuation. Hence, industrial and logistics valuation is a type of project management in which members work to achieve the goal and value of real estate within a specified time frame by utilizing supply chains, transportation, warehousing, consultation, and planning.

Land Sterling prides itself on providing Dubai’s finest industrial and logistics valuation services. Since our early beginnings in 2009, the ISO-certified firm has completed over 10,000 projects that are all RICS & RERA regulated. Contact us today to get a quote for industrial and logistics valuation services.

FAQ

1. Is industrial warehousing the same as logistics?
Warehousing and logistics both serve essential roles in a company’s supply chain. However, warehousing is concerned with the safe storage of merchandise within a building, whereas logistics is concerned with the conceptual approach of storing and delivering goods stored in a warehouse.

2. What is industrial property?
Industrial property includes any real estate used for manufacturing, production, distribution, storage, or research and development of a product.

3. What are some of the types of industrial properties?
There are three main industrial property types: manufacturing, storage/distribution, and flexible space.

4. What are examples of industrial buildings?
Buildings such as warehouses, cold storage buildings, factories, Telecom hosting centres, and flex buildings are all categorised as industrial buildings.

5. Is there a difference between commercial and industrial?
Any company involved in the production of goods is considered industrial. Any business conducted with the sole intention of making a profit is “commercial.”

Author

Gokul Puthiyaveettil

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