Commercial Industrial Loans

Industrial real estate — warehouse, flex space, light industrial, last-mile logistics, and distribution — has been one of the best-performing commercial asset classes of the last decade. E-commerce, onshoring, and supply-chain restructuring keep demand high in most markets.

Lenders reflect this: industrial typically gets better LTV, tighter DSCR, and longer terms than general office or retail. If your deal is stabilized industrial with credit tenants, this is one of the most favorable commercial financing categories.

Check Industrial Loan Eligibility Talk to an Industrial Specialist — (833) 350-9185

Program Highlights

Feature	Typical Range
Loan amounts	$500,000 – $15,000,000+
LTV	Up to 75% (stabilized); 70% value-add
DSCR minimum	1.20–1.25
Amortization	25 years
Term	5, 7, 10-year balloon
Minimum occupancy	85% stabilized
Ceiling height	22-32’ is modern; older 16-22’ prices tighter
Recourse	Recourse under $2M; non-recourse above typical

Industrial Sub-Types

Bulk Warehouse / Distribution

200,000+ SF, 32’+ clear height, dock-high loading. Used for regional distribution. Tenants tend to be large corporate (Amazon, FedEx, Walmart DC, national 3PLs). Institutional asset class.

Last-Mile Logistics

Smaller urban warehouse (50,000–150,000 SF) positioned for same-day delivery. In-demand due to e-commerce growth. Typically tighter cap rates than traditional industrial.

Light Industrial / Flex

Smaller footprint (10,000–80,000 SF), lower clear height (16-22’), flexible build-out (partial office, partial warehouse). Tenants: small manufacturers, contractors, supply companies, distribution arms of regional businesses. Strong small-investor category.

Single-Tenant Industrial NNN

Credit tenant on long lease (10–20 years) — essentially a corporate bond wrapped in real estate. Priced aggressively.

Who Buys Industrial

Small-to-mid-cap investors in light industrial and flex
Institutional buyers in bulk warehouse and last-mile
Owner-users where the business is a manufacturer, distributor, or contractor needing warehouse + office (often SBA 504)
1031 exchange buyers moving into industrial for its favorable pricing and passive cash flow
Value-add industrial investors buying older buildings to renovate or re-tenant

Sample Scenario: Light Industrial Flex Building

40,000 SF Flex Building, Houston TX

Property: Single-tenant flex (25% office / 75% warehouse), 24’ clear height, 4 dock doors, built 1998
Tenant: Regional electrical supply distributor, 10-year lease with 5-year option
Purchase price: $3,600,000
Down payment: $900,000 (25%)
Loan amount: $2,700,000
NNN rent: $28,000/month ($336,000/yr)
NOI: $325,000 (small landlord reserve)
Debt service (6.5%, 25-yr): $218,000/yr
DSCR: $325,000 ÷ $218,000 = 1.49
Result: Approved. Single-tenant credit, long lease, favorable pricing.

What Makes Industrial Underwrite Well

Clear height — 32’+ is modern institutional; 24’+ is solid; below 22’ is older-generation
Dock doors per SF — more docks = more usability for logistics
Column spacing — wider spacing is more flexible
Truck court depth — 130’+ is standard for modern logistics
Power — heavy industrial needs 3-phase, amp capacity
Tenant quality and lease term — usual commercial considerations
Location — highway access, proximity to population centers and ports

Frequently Asked Questions

Several reasons: stronger structural demand (e-commerce, onshoring), longer typical lease terms, less tenant turnover, lower tenant improvement costs, and historically lower vacancy. Lenders reflect this with higher LTV and tighter DSCR requirements than on general office or retail.

Yes — owner-user industrial is often the highest-LTV commercial financing available through SBA 504 (up to 90% LTV on qualified owner-occupied deals). This is a common path for manufacturers, distributors, and contractors who want to stop leasing.

Yes, with appropriate adjustments. Older industrial (16-22’ clear) serves local tenants well but doesn’t compete for large logistics users. Expect lower LTV (65-70%) and tighter underwriting than modern Class A industrial. Pricing is still often better than equivalent older office.

One of the most favorably priced commercial deals available. A credit tenant on a 15-year absolute NNN with rent escalations is treated almost like a corporate bond. Expect aggressive LTV (up to 75%) and tight cap rate pricing.

Yes, typically via bridge loan first (12-36 months interest-only) to execute the business plan — re-tenant, renovate, expand — then refinance into permanent debt once stabilized. Bridge-to-perm is a common structure for industrial value-add.

Commercial Loans Hub — Full overview
Self-Storage — Specialized industrial-adjacent asset
Office — Flex-office combinations
Hard Money — Bridge for value-add industrial

Check Industrial Loan Eligibility Talk to an Industrial Specialist — (833) 350-9185

1st Nationwide Mortgage, NMLS 1281. Commercial industrial loans subject to property, tenant, and sponsor underwriting. Loan terms vary by building quality, tenant credit, and loan size. Not all applicants or properties will qualify.

Commercial Industrial Loans | Warehouse, Flex, Light Industrial Financing