Industrial, warehouse and flex bridge loans

What lenders look at

Clear height

Usable interior height, which drives what tenants can use the building. Lower clear heights narrow the tenant pool for modern distribution users.

Loading docks and truck access

Dock-high doors, grade-level doors, truck court depth and trailer parking.

Single vs multi-tenant

A single-tenant building is all or nothing on occupancy. Multi-tenant and flex buildings spread risk but carry more management and turnover.

Functional obsolescence

Column spacing, floor load, power, sprinklers and office-to-warehouse ratio compared with what tenants in the submarket need.

Environmental

Prior manufacturing or chemical uses, storage tanks and contamination history. Industrial loans get the closest environmental review of any property type.

Tenant use and credit

What the tenant does in the building, their financial strength and whether the use creates environmental or wear risk.

How leverage works

Many asset-based bridge lenders lend around 60–75% of as-is value on industrial, with lower leverage for vacant single-tenant buildings, functionally obsolete space or properties with environmental concerns. When there is a plan to add docks, power or other improvements, some lenders fund it on a loan-to-cost basis from a holdback. Lenders may require a Phase II environmental before closing if the Phase I raises concerns, which can also reduce proceeds.

Use the commercial bridge loan sizer to see whether LTV or LTC decides your loan. The deal form asks for square feet, occupancy today and current NOI, so lenders see the numbers they size on.

Documents lenders ask for

• Rent roll with lease dates, options and expense recoveries
• All leases and amendments
• Tenant estoppel certificates
• Trailing 12-month operating statement
• Building specifications: clear height, docks, power, sprinklers, square footage
• Prior environmental reports, if any
• Capital or improvement budget
• Purchase contract or current loan payoff statement
• Site plan and survey
• Entity documents and sponsor real estate schedule

How fast it closes

Industrial bridge loans commonly close in about 14–30 days. The Phase I environmental is the biggest variable: if it finds recognized environmental conditions, the lender may require a Phase II with soil or groundwater testing, which can add weeks. A property condition report and survey are typical. Vacant single-tenant buildings with a clean environmental history tend to move quickly.

Common bridge scenarios

Vacant building acquisition

Buy a vacant warehouse or flex building and lease it to a new tenant.

Functional upgrades

Fund added docks, power, lighting or sprinkler upgrades to compete for modern tenants.

Maturing loan payoff

Pay off a loan coming due after a tenant has left or given notice.

Owner-user bridge

A business buys its own building on bridge debt and later moves to SBA 504 or bank financing.

Typical exit

Stabilized industrial typically refinances with a bank, CMBS or life company, owner-users often use SBA 504, or the building is sold to industrial investors.