Investing in industrial real estate, like any investment, comes with risks. Some of the key risks include: Market Risk: The industrial real estate market can be influenced by economic downturns, changes in trade policies, and fluctuations in demand for industrial space. Tenant Risk: Industrial properties often have single or a few tenants with long-term leases. If a major tenant defaults or vacates, it can significantly impact your rental income. Location Risk: The value and demand for industrial properties are closely tied to their location. Investing in a less desirable area may result in lower returns and higher vacancy rates. Maintenance and Operational Costs: While industrial properties generally have lower maintenance costs compared to other real estate sectors, unexpected repairs or operational issues can still arise and affect profitability. Regulatory Risk: Changes in zoning laws, environmental regulations, or property taxes can impact the profitability of industrial real estate investments.