22 Types of Industrial Properties

Although the overall vacancy rate of industrial property increased to 7.5% in 2025, leasing activity increased 8.5%, according to JLL, which attributes much of the new growth to data centers. 

Commercial real estate is divided into 3 classes — A, B, and C; however, those classes refer to the amenities, age, and overall quality of the buildings, not the intended uses. Here, we look at the types of industrial CRE designed for manufacturing, storing, and distributing goods. 

What is an industrial building? Industrial building definition encompasses a type of commercial real estate that companies use to manufacture, distribute, assemble or store large scale goods.

Production & Assembly CRE

Manufacturing

Manufacturing properties include factories where goods are produced or assembled. According to the NAIOP, the Commercial Real Estate Development Association, a manufacturing building has a clear height of 18+ feet (how high a product can be safely stored on racking or from the floor to the lowest hanging object on the ceiling, such as a light or sprinkler). Other manufacturing property features include industrial office space (less than 20%) and loading docks. Two subtypes under this type of industrial property are heavy and light assembly.

Example: Boeing's Everett, Washington, manufacturing plant, which makes 747, 767, 777 and 787 airplanes.

Heavy assembly 

Heavy manufacturing factories require extra-large production areas that can accommodate heavy-duty equipment. This type of industrial property is often customized according to tenant/owner needs and may have multiple stories with elevators or freight lifts. Other features include heavy-duty floors (able to withstand heavy equipment) and multiple large loading docks. Examples of companies that use this type of industrial property include automotive, aerospace, farming, or construction equipment manufacturers.

Example: GM's Spring Hill Manufacturing in Spring Hill, Tennessee, which builds Cadillac XT5 and XT6 SUVs.

Light assembly

Light assembly facilities typically require less overall square footage and production space, a lower ceiling height, and fewer loading docks. Office space may take up a larger percentage of square footage in this subtype of manufacturing property. Businesses that use light assembly include furniture, toy, and electronics companies. 

Example: Geiger Furniture, which has been making modular office furniture and chairs in Atlanta since the 1970s.

High-tech assembly facilities

High-tech assembly takes place in facilities with tight controls and requirements in order to meet the strict needs of certain industry standards and regulations. High-tech manufacturing has high upfront costs due to the unique nature of the facility. Some high-tech facilities include design spaces, while others require high-volume production. The size and nature of these facilities depend on the industry, which includes medical, automotive, electronics (including semiconductors, software, etc.), and aerospace. 

Example: Onsemi, which has manufacturing facilities in Tampa, Fla., Gresham, Ore., and Mountain Top, Pa. 

Clean rooms

Clean rooms are used by industries that need strictly controlled environments that won’t have bacteria, dust particles, chemicals, or other potential contaminants. They’re usually small and comply with the regulations of an industry, such as FDA or ISO regulations. They require high-efficiency particulate air filters, anti-static floors, and other specifications to be as controlled as possible. Electronics manufacturers, food manufacturing, biotechnology, and life sciences are all examples of industries that require clean rooms.

Example: CGMP & Biotech cleanroom for stem cell manufacturing, a 300-sq-ft cleanroom in Wisconsin designed to meet compliance requirements for biomanufacturing. 

R&D facilities (non-life sciences)

Although broad, research and development are involved in almost every product or service on the market. R&D doesn’t typically directly generate revenue, so not every industry will have its own R&D facility (some may contract it out), but companies that do, typically give it its own dedicated space. The nature of that space will range, as some industries require specific testing, resources, or space to conduct R&D. These dedicated facilities have collaboration spaces, testing areas, and other infrastructure designed to support innovation. Automotive, B2B technology, consumer products, and entertainment are just some examples of industries with R&D facilities. 

Example: TRC California in Atwater is a 225-acre area that includes an oval test track, intersections, and a 17 and 22-acre vehicle dynamics area. 

Incubator or startup industrial spaces

Startup spaces are short-term rentable spaces aimed to support startup businesses. Yes, this includes office amenities, and in the case of industrial startup spaces, flexible room for activities like manufacturing or storage. However, a lot of successful incubation spaces for startups are located in prime downtown locations where there are opportunities for networking, nearby training, and meeting potential investors. 

Example: FirstBuild CoCreate is a microfactory/maker space (founded by GE) where startups can rent space in a facility and have access to equipment to build or create products. The submission process for qualifying for a space includes potential awards for the concept and a royalty on future sales. 

Storage & Warehouses

Commercial storage

Commercial storage buildings are used to store and/or ship materials or goods. While this type of industrial property varies in size, it typically has a clear height of 16+ feet, a minimum of one loading dock, and office space that takes up no more than 20% of the building. The three subtypes under this industrial property include bulk, office, and refrigeration/cold storage. 

Example: B&E Storage and Transfer is a warehousing and transportation company in Port of Baltimore, Maryland

Bulk warehouses

Bulk warehouses, or general-purpose warehouses, vary in size, from under 15,000 square feet to over 100,000 square feet. Other features include tall ceilings with a clear height of 32+ feet, a minimum of one loading dock, and little office space, less than 5% of total square footage. You may find this subtype of commercial storage in industrial parks or near highways or ports. Businesses that may use a bulk warehouse include e-commerce, retailers, and wholesalers.

Example: Amazon has over 100 active fulfillment warehouses across the United States.

Office warehouses

An office warehouse is a combination of an office and a warehouse. Opting for this joint space property rather than separate buildings may help businesses lower expenses. This type of commercial storage will have more square footage dedicated to office space than bulk warehouses and is often found in an industrial park. Companies that may select an office warehouse as a storage, distribution, and office solution include retailers, e-commerce, and food companies (non-perishable goods).

Example: Irvine Corporate Park in Irvine, California, has 12 buildings with 112,272 square feet of office/flexible warehouse building space.

Refrigeration/cold storage

Refrigeration/cold storage facilities store and distribute sensitive items at specific temperatures to protect their integrity, quality, and shelf life. Office space is limited to under 5% of overall square footage, while ceilings tend to be very high, with a clear height of 50+ ft. Businesses that use this type of storage include food (perishables), pharmaceuticals, or craft goods (candles).

Example: Interstate Cold Storage has five locations in Ohio and Indiana, including a 4.2 million square foot facility in Columbus, Ohio, that includes quick-freeze facilities, convertible storage, and refrigerated docks.

Distribution and fulfillment centers

Distribution and fulfillment centers encompass B2B and B2C commerce, respectively. They’re usually large facilities that have multiple truck bays and interior storage space. A key aspect of both types of centers is the capacity to pick and move goods for delivery. The difference is that fulfillment centers handle smaller orders and distribution centers deal with wholesale or bulk sales. These facilities are common in e-commerce, such as Amazon, or grocery stores, which usually have large distribution centers that handle shipping food to local stores. 

Example: Distribution International, an organization with facilities across the U.S. that supplies contractors for industries like residential or CRE. 

Cross-dock facilities

Similar to distribution and fulfillment centers, cross-docking facilities handle moving goods for distribution. The difference is that a cross-dock facility has little to no long-term storage capacity, making it, on average, smaller than a distribution center. A cross dock is usually long or L-shaped with unloading on one side and onloading on the other. Cross-dock facilities are typically located in high-traffic areas, speeding up delivery and keeping inventory moving. Large retailers will set up cross-docking for incoming products to be distributed to each store. 

Example: Cross Dock America, which has cross-docking locations across the U.S. and additional short-term storage solutions. 

Container freight stations

A container freight station, or CFS, is a facility that handles consolidating or deconsolidating goods for pickup and distribution. A CFS may be located near a port of entry (like a seaport or airport), so that they can offload large quantities of goods for deconsolidation into smaller parcel sizes. Conversely, a CFS may also be used to drop off lots of smaller goods for consolidation into a single cargo container. CFSes can be very large and used to optimize the supply chain in all shipping, particularly when a container is less than a full container load (LCL). 

Example: DHL Chittagong, a 70,000 sqft CFS that handles billions of dollars of exports, especially clothing and garments. 

Truck terminals

Truck terminals are similar to cross-docking facilities in that they handle quick unloading of products onto other outbound trucks with very little long-term storage or warehousing capability. They can be long, narrow and as large as over 15,000 sq. ft.; they can also be much smaller, especially in regional or last-mile networks. They’re used for LTL (less than truckload) freight and are typically part of the mid-mile shipping. A truck terminal can have specialized services for trucks, such as fueling and maintenance. 

Example: Truck Terminal in Ontario, Canada, which is 24,000+ sqft located near major distribution and fulfillment centers. 

Rail-served warehouses

Located along a rail line, rail-served warehouses have direct access to railroad transit with unloading/loading capability and storage space for goods transported over rail. Rail-served warehouses are essential for railroad logistics, as they’re also used for crossloading between railcars and trucks. Most rail-served warehouses have storage and consolidating capability for inbound and outbound goods. They’re often located at or near railroad hubs, so design and size are dependent on the layout of the hubs. 

Example: Venture Logistics Indianapolis rail-served warehouse is a 406,000-sq.-ft. warehouse certified for food storage and shipping. It’s partnered with the Indiana Rail Road and has 15 indoor rail car spots. 

Hazardous material storage

Intended for potentially dangerous materials that have specific storage requirements, hazardous materials storage is a specialized type of industrial real estate asset that considers the state of the material (gas, liquid, solid, etc.) and the regulatory body (including OSHA, USDOT, and EPA) that governs the requirements for storage. For example, flammable liquids for the oil and gasoline industry have a set of requirements for constructing storage facilities that include specialized containers, storing liquids indoors, and not storing liquids in exit or passage areas. A hazardous material storage design will depend on the nature of the substance. 

Example: U.S. Chemical storage building, which is a small, customizable steel building EPA-compliant for chemical storage and modular for larger or smaller storage solutions.

Flex Warehouses/Industrial

Flexible warehouses

Flex warehouses offer a cost-effective mixed-use space that is adaptable to the tenant’s needs. This type of industrial property may be near other industrial properties or urban areas. At greater than 30%, office space is considerably more significant than other industrial properties. One subtype flex warehouse is the industrial showroom.

Example: Luke Field in Glendale, Arizona, includes three buildings with flexibility for industrial, warehousing or distribution.

Industrial showrooms

An industrial showroom features a warehouse, office space, and retail area. This combination allows businesses to store goods, perform office duties, and demonstrate or sell products in one building. Companies that use this subtype of warehouse industrial property include breweries or car dealerships.

Example: Luxe Luxury Fifth Wheels' showroom in Elkhart, Indiana, which makes toy haulers and "fifth wheel," towable recreational vehicles.  

Industrial Parks

Industrial parks are unique to industrial real estate because they combine production, transportation, and storage facilities in the same area. Instead of a single-purpose use building, industrial parks may have businesses that provide goods and services that complement each other or companies that provide similar goods or services, such as beverage manufacturers. Variations of industrial parks are office or business parks. Businesses that you may find in an industrial park include food and beverage processors, plastics manufacturers, research and development.

Example: MidAmerica Industrial Park, which covers 9,000 acres in Oklahoma and includes a regional business airport. 

Refineries

A refinery is a manufacturing facility that uses a series of chemical engineering processes and operations to refine specific materials or transform raw materials such as sugar, metal, or oil into valuable products. This type of industrial property is typically located near waterways for shipping accessibility.

Examples: C&H Sugar, United Precious Metals Refining, ExxonMobil, and Marathon all use refineries to manufacture their products.

Specialty Industrial

Controlled-environment grow facilities

A CEA facility is an enclosed, controlled-environment agriculture facility designed to provide optimal conditions for growing a certain crop. Specifications of the controlled environment depend on the crop, but they achieve optimal conditions through controlled temperatures, humidity, light, and soil with technology to support growth. Industries include:

• Cannabis grow facilities: Facilities intended for growing and harvesting cannabis. C4USA houses California’s largest 150,000-sq.-ft. indoor grow center, which produces medical cannabis. 

• Vertical farming: Farms that use the vertical space of an enclosed facility with multiple tiers of crops. Cal Poly Pomona has a high-tech vertical farming facility within a 40-foot-high shipping container that holds over 8,000 plants. 

• Hydroponic facility: A space designed to grow crops in water solutions filled with nutrients, rather than soil. Freight Farms sells modular hydroponic containers designed for commercial use at scale. 

• Aquaponic facilities: A facility that supports both a plant and fish ecosystem, designed to encourage plant growth by utilizing the nutrient-rich waste that fish produce. Oroboros Farms in California is one of the largest aguaponic farms in the country, designed to replicate river and lake ecosystems.