Industrial

Warehouse, flex, cold storage, and light manufacturing: clear heights, dock doors, and last-mile logistics.

Property Types

  • Warehouse / distribution centre
  • Flex industrial (office/warehouse hybrid)
  • Manufacturing / heavy industrial
  • Cold storage / refrigerated warehouse
  • Data centre (light industrial classification)
  • Last-mile urban infill facility

Physical Attributes

  • Clear height (32′-40′ modern spec), column spacing, and bay depth
  • Dock-high doors, drive-in doors, and truck court depth (130′+ preferred)
  • Power supply: voltage, amperage, redundancy (critical for data/cold)
  • Floor slab thickness, flatness (F-number), and load capacity
  • Trailer parking count, fire suppression (ESFR vs in-rack), and yard depth

Value-Add

  • Spec-to-build-to-suit conversion for single-tenant credit occupancy
  • Automation retrofit: conveyor, AS/RS, robotic sortation integration
  • Last-mile infill repositioning from obsolete light industrial
  • Cold-chain upgrade: blast freezer addition, multi-temp zone build-out
  • Clear height increase via roof raise on older shallow-bay buildings

Appraisal Approach

  • Income approach with long-term NNN lease analysis and credit tenant premium
  • Cost approach for specialized facilities (cold storage, data centre)
  • Replacement cost analysis: land scarcity premium in constrained submarkets
  • Functional obsolescence deduction for low clear height or shallow bay depth

Management

  • Preventive maintenance: roof, HVAC/refrigeration, dock levellers, fire suppression
  • Minimal tenant improvement scope; landlord focus on shell and site
  • Yard management: trailer staging, truck traffic flow, pavement maintenance
  • Environmental compliance: stormwater management, Phase I baseline

Strategic Concepts

  • Supply chain proximity and transportation node adjacency as rent drivers
  • E-commerce tailwinds: same-day delivery network densification
  • Land supply constraint and entitlement barriers in infill markets
  • Yield compression in institutional-grade logistics portfolios
  • Build-to-suit development spread vs stabilized acquisition pricing

Related topics

Net Operating Income (NOI) in Commercial Real EstateCap Rate Compression in Commercial Real EstateSale-Leaseback Structures in Commercial Real EstateProperty Condition Assessment in CRE Due DiligenceSubstantial Completion in CRE ConstructionCore Strategy in CRE Investing
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