Property Type

Industrial Property Loans Built for Scale.

Warehouses, distribution centers, manufacturing facilities, and flex space. We connect you to lenders who specialize in industrial real estate across all asset sizes.

75%
Max LTV
5.5–9%
Rate Range
5–25 yr
Loan Terms
$500K+
Loan Amounts
No credit impact Advisor-led process Multiple lender options No upfront fees
INDUSTRIAL TYPES

What Type of Industrial Property Are You Financing?

Industrial is the strongest-performing CRE sector. Lender appetite is high across all subtypes.

Warehouse / Distribution
E-commerce and logistics backbone
Large footprint, high clear height (24–36ft), multiple loading docks. Last-mile delivery and 3PL tenants drive demand. Lowest vacancy rates in commercial real estate. Strongest lender demand.
Manufacturing / Production
Heavy power, specialized infrastructure
Purpose-built for production operations. Heavy power requirements, overhead cranes, specialized flooring. Often owner-occupied with SBA financing. Lenders evaluate both the business and the property.
Flex / R&D Space
Office + warehouse hybrid
Combination office-warehouse with flexible layout. Popular with tech, biotech, and light assembly. Typically 30–50% office finish. Growing demand in suburban markets near talent pools.
FINANCING OPTIONS

Loan Options for Industrial Properties

Industrial assets are lender favorites. Multiple financing routes are available.

Conventional Bank
Lowest rates for stabilized assets
Rate5.5–8%
LTV65–75%
Term5–25 years
DSCR1.25x+

Industrial gets premium pricing from banks due to low vacancy and strong tenant demand.

SBA 504 / 7(a)
Owner-occupied manufacturing, 10% down
Rate5.5–7.5%
LTVUp to 90%
Term20–25 years
Occupancy51%+

Ideal for manufacturers, distributors, and logistics companies buying their own facility.

DSCR Loan
No personal income docs
Rate7–9%
LTV65–75%
Term5–30 years
DSCR1.0–1.25x

Portfolio investors scaling industrial holdings. No tax returns needed.

CMBS / Conduit
Large assets, non-recourse
Rate6–8%
LTV65–75%
Term5–10 years
Min Loan$2M+

Non-recourse for large logistics and distribution facilities with creditworthy tenants.

KEY METRICS

What Lenders Evaluate for Industrial Loans

DSCR
1.25x+
Industrial typically exceeds threshold easily
Clear Height
24ft+ preferred
Modern logistics need 32–36ft
Loading Docks
Critical for valuation
Cross-dock = premium pricing
Cap Rate
5–8% typical
Compressed due to high demand
Occupancy
90%+ market avg
Industrial vacancy near historic lows
Down Payment
20–30%
10% with SBA for owner-occupied
THE PROCESS

How Industrial Property Financing Works

01

Share Your Deal

Property address, square footage, clear height, dock count, tenant info, and purchase price or estimated value.

02

Submit to BestLoanUSA

Single application. No credit pull. We evaluate across bank, SBA, DSCR, and CMBS options.

03

Advisor Review with Jason

Jason evaluates your industrial asset’s specifications, tenant strength, and market position to recommend the strongest financing path.

04

Lender Matching

We submit to lenders specializing in industrial. You receive competing term sheets.

05

Underwriting & Appraisal

Industrial-specific appraisal including physical inspection. Provide lease, operating statements, and environmental reports.

06

Close & Fund

Conventional: 30–45 days. SBA: 60–90 days. CMBS: 45–75 days.

Ready to Finance Your Industrial Property?

No credit pull. No commitment. See what industrial financing options are available.

FAQ

Frequently Asked Questions

Why is industrial real estate considered a strong investment?

E-commerce growth has driven unprecedented demand for warehouse and distribution space. Industrial vacancy rates are near historic lows nationally. Long-term NNN leases with logistics companies provide stable, predictable cash flow that lenders and investors favor.

What makes industrial properties easier to finance?

Low vacancy, strong tenant demand, and simpler maintenance compared to office or retail. Industrial assets typically have higher DSCR, making them lower risk for lenders. Many banks offer their best CRE rates for industrial.

Can I buy a warehouse for my own business?

Yes. SBA 504 and 7(a) are ideal for manufacturers, distributors, and logistics operators buying their own facility. 10% down with SBA 504 for an existing building.

Do environmental concerns affect industrial lending?

Yes. Most lenders require a Phase I Environmental Site Assessment for industrial properties. Properties with contamination history may need Phase II testing. Clean environmental reports are typically required before closing.

What clear height do lenders look for?

Modern logistics tenants want 32–36ft clear height. Buildings with 24ft+ are financeable but older buildings under 20ft may face limited lender appetite and higher vacancy risk. Clear height directly impacts property value and rent rates.

What is the minimum loan amount for industrial?

Most lenders start at $500K. CMBS requires $2M+. SBA loans accommodate smaller industrial purchases. Mini-warehouses and flex spaces in the $300K–$500K range are available through select portfolio lenders.