Types of Industrialization

Its importance withinside the real estate marketplace isn’t to be understated. Julie Satow of the New York Times even states that Industrial Real Estate is the main indicator of achievement for the relaxation of industrial real estate. Put simply, while clients have a call for positive items, manufacturing and stock garage ought to observe that is a precursor to hiring a greater group of workers and commencing places of work to develop the enterprise commercially.

In many elements of Asia, commercial assets are a section with large potential. This is in particular genuine in Vietnam, wherein the USA has visible a huge inflow of overseas funding withinside the commercial area because of:

  • Low labor costs (nearly 1/2 of China)
  • Affordable value of funding: land price, sea freight
  • Favorable company profits tax
  • Pro-energetic in change agreements: AEC, FTA with EU, Korea

Whether making an investment or trying to get worried in commercial real estate for different functions, it’s vital to decide the variations among the diverse forms of assets in this field. Let’s have a more in-depth look:


Factories wherein items are assembled and produced are possibly the maximum not unusual place idea with regards to commercial assets. Some factories are of substantial length with heavy manufacturing and a few are small and used specifically for assembly. Some are exertions heavy to make items, a few use greater robotics and automation to make the products and a few use the stability of each. Both huge and small factories usually encompass much less than 20% workplace area.

When it involves production plants, groups nevertheless ought to determine precisely what kind of operation they want to run. For example:

Ready-Built-Factories: RBFs can offer tenants flexibility on funding and financing, in addition, to increase possibilities to organized land as their enterprise expands. They additionally advantage groups who need to go into the marketplace speedy and begin operations as quickly as possible.

Built-to-Suit Factories: These are usually large homes, and are designed for the tenants’ unique desires. The method is lengthier and greater commitments are required with the aid of using each event in phrases of capital, time, and effort. The tenant advantages from a greater tailor-made answer however rentals are longer, commonly 10 to fifteen years, which allows you to allow the owner to recoup its funding over the length of the hire time period.


These are homes wherein objects for distribution are stored. It serves as a garage for merchandise from the producer to the distributor earlier than they may be despatched to their diverse retail destinations. Therefore, the place is of maximum significance here – how near is the power to surrounding air and seaports? Manufacturing groups, third-celebration vendors, and retail shops use distribution warehouses because the advantages of time-saving, money-saving, and peace of thought convey ease.


Private warehouses are used greater for garage functions than distribution e.g. bloodless garages for perishable objects. They are owned and controlled with the aid of using producers and constructed close to their manufacturing units. They are usually smaller in length than their distribution counterparts. Users of those centers advantage from a diploma of manage however it is able to be pricey withinside a short time period because of its constant length and value.


Flex commercial homes are designed to meet a couple of desires of the constructing tenant. Often cited as ‘hybrid’ area, those homes can comprise a few or all areas from workplace area, retail showrooms, warehouse and distribution, and R&D. Many R&D homes are occupied with the aid of using tenants in hi-tech, electronics, or biotechnology, therefore ‘flex’ area is attractive because it gives a much wider variety of makes use of in a single place. Typically flex areas could have decrease ceiling heights and a better percentage of workplace area than in natural production and warehouse homes, ranging everywhere above 40%.


Used for groups withinside the Hi-Tech industry, those areas ought to have electric switching, uninterruptable energy supplies, backup generators, airflow, and cooling systems. They are near main energy delivery and communique strains to aid considerable servers and the homes have a strict emphasis on safety to save you unauthorized get admission to information. With regard to ceiling height, the better the higher in information facilities. The area above the shelves accumulates growing warmness and minimizes it with the aid of using blending with bloodless air. In Vietnam, we additionally see information facilities discover their domestic in commercial areas, including the case with FPT Data Center in Tan Thuan Industrial Parks ‘e-workplace’ section of the economic zone.

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