The Environment and Performance of Industrial Real Estate

Authors: John D. Benjamin, Emily N. Zietz and G. Stacy Sirmans

Start Page: 279
End Page:324
Volume: 11
Issue Number: 3
Year: 2003
Publication: Journal of Real Estate Literature

Abstract: This study examined over seventy industrial real estate research papers and
categorized them according to: 1) property characteristics, 2) demand determinants,
3) rent and income determinants, 4) return and valuation issues, 5) environmental
concerns, 6) international issues, and 7) management and financing concerns. The
findings indicate that industrial properties tend to be segmented and clustered by use
with greater demand for flexibility and smaller size, yet with reduced demand for
warehouse space. Employment, age, and percentage of office space affect industrial
rents while industrial land values indicate future rental rates. In addition, local market
factors, physical characteristics and location affect industrial property values, but
environmental contamination has an adverse effect.