Why industrial draws the tightest spreads
Cold storage and last-mile logistics are specialized sub-sectors with their own lender pools. Cold storage in particular requires lenders who understand the energy economics and tenant credit dynamics.
Single-tenant net lease
STNL industrial deals, long-dated leases to creditworthy tenants, get aggressive treatment from life companies and CMBS desks. Lease structure, rent escalations, and tenant credit dominate the underwriting; the building economics are secondary.
Typical industrial loan terms
| Loan type | Potential fit |
|---|---|
| Life company permanent | Stabilized, credit-tenanted warehouses |
| CMBS conduit | Non-recourse, multi-tenant parks |
| Bank permanent | Owner-users and local investors |
| Bridge (debt fund or bank) | Vacant buildings and lease-up |
| Construction (bank) | Build-to-suit and speculative construction |
Loan proceeds, pricing and terms depend on the property and lender underwriting. Send the property details to discuss financing.
What lenders underwrite on industrial
- Functionality. Clear height, loading, truck court depth and power decide how easily a building re-leases.
- Tenant credit and term. Remaining lease term and the tenant’s financial strength carry more weight than in most asset classes.
- Mark-to-market. Below-market leases near expiration are upside lenders will partly credit.
- Location. Access to highways, ports and population drives lender appetite for multi-tenant product.
What to have ready
- Rent roll with lease terms, options and rent steps.
- Building specifications: clear height, docks, drive-ins, power and parking.
- Operating statements and recent capital work on roofs and paving.
- Environmental history, especially for older or manufacturing sites.
Frequently asked questions
Why is industrial real estate favored by lenders?
Strong tenant demand, low capex burden, high occupancy, and a long history of stable performance. The result is the tightest spreads of any major asset class.
Can you finance specialized industrial facilities?
Yes. Cold storage, manufacturing, and single-tenant net leased industrial all have specific lender pools we work with.
What loan types are most common for industrial properties?
Life company, bank perm, and CMBS for stabilized. Bridge debt funds for value-add, lease-up, and multi-tenant repositioning.