Why many investors don’t buy manufacturing sites

Investors are hesitant to engage in heavy manufacturing real estate due to the highly specialized nature of such facilities. The purpose-built characteristics of manufacturing sites limit their adaptability and reusability if the current occupant vacates. This concern makes heavy manufacturing less appealing as a long-term investment. In contrast, assembly operations attract more interest since they fit within a broader definition of industrial real estate, combining some flexibility with established market demand. Consequently, heavy manufacturing properties are predominantly owned by the companies that utilize them, reflecting the risk-averse nature of traditional industrial investors.