If you are new to investing in the industrial real estate market in Denver, you may be surprised at how diverse the different property types can be. While the overall industrial market in Denver has appreciated by nearly 25 percent annually (Source), not all property types carry the same risk and generate the same return. A professional industrial real estate agent in Denver can help guide you with the right advice to  make an informed investment decision. Typically, most industrial  properties fall into one of three subtypes: manufacturing facilities, warehouses, and flex space.


Manufacturing facilities are used to produce and assemble a variety of goods. These types of industrial buildings usually comprise less than 20% of office space and include multiple loading docks. In most cases, manufacturing plants require at least 10 feet of clearance.

Manufacturing plants can be of two types, light industrial or heavy manufacturing. The former involves the assembly, storage, and shipment of products, often directly to customers. Heavy manufacturing facilities are usually larger properties equipped with more capital-intensive machinery that requires additional power and loading dock space.

These types of industrial properties usually require a significant amount of tenant improvements and will need to be renovated prior to releasing. To understand if manufacturing facilities are a good  investment option for you, seek industrial brokerage services in Denver.


Perhaps one of the most popular types of industrial real estate investments are warehouses. Warehouses facilitate  the storage, logistics, and distribution of products to wholesale and retail customers. Depending on the type and amount of goods stocked, warehouses can be as small as 5,000 square feet and as large as 2 million square feet, however typically consist of a small amount of office space.

There are generally two types of storage and distribution spaces:

General purpose warehouse: This type of industrial facility is much smaller in size and is geared towards the storage of goods. These warehouses are mainly used to store products that are then shipped to another location to facilitate distribution or production. An example is a cold storage facility.

Distribution warehouse: These types of industrial properties are primarily used for logistics and the shipment of goods. Since shipping plays an integral function of distribution warehouses, location plays an important role here. Therefore, these are located near major transportation hubs or city centers. Amazon fulfillment centers have come to exemplify today’s distribution warehouses.

Flex Space

Flex spaces are industrial properties that give their tenants flexibility in the way they can utilize the building. These comprise a mix of warehousing, office space, and areas to feature or test products. Some common examples are data centers, research & development, and showrooms.


Industrial real estate is a diverse market, largely consisting of manufacturing facilities, warehouses, and flex spaces. Deciding which property type to invest in can depend a number of factors, such as your time-horizon and expected return on your investments. An experienced industrial real estate agent in Denver can help you choose the best option based on your long-term investment goals.

Source URL: https://ibusinessday.com/more-than-four-walls-and-a-ceiling/

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