Industrial and warehouse property loans

Warehouse and industrial buildings in Phoenix are financed on the tenant, the building specs, and whether you occupy the space yourself. Kelly Dutton at OneClick Commercial Funding reviews these files as commercial loans, not as a residential product with a bigger price tag.

Tenant and lease, or your own operation

A single tenant on a long lease is a different loan from a vacant bay you plan to fill. Lenders want the lease, the remaining term, and any renewal options. If you will use the building for your own distribution or light manufacturing, it may fit an SBA loan as owner-occupied commercial real estate.

A vacant building is still financeable in some cases. It is not financeable on a made-up rent. Bring asking rents you can defend, or expect the loan amount to be based on a lower figure.

Building facts that change the lender pool

Clear height, dock doors, power, truck court, and office build-out decide which occupants can use the box. A low-clear older building in central Phoenix is not the same collateral as a new big-box on the loop. Photos and a spec sheet belong with the document checklist.

Environmental history matters more here than on a garden apartment. Prior users, floor drains, and underground tanks should be disclosed early. A Phase I usually comes after a lender is chosen, but a known issue should not be a surprise at commitment.

Where these deals sit in the Valley

Kelly works industrial files in Phoenix and the surrounding cities on the areas we serve pages, and she also places deals outside Arizona. The City of Phoenix site is a starting point for local zoning questions. Zoning compliance is the borrower’s issue to confirm. It is not something a term sheet can waive.

If the building is mid-renovation or the purchase has to close before a permanent lender is ready, look at when a commercial bridge loan fits. Stabilized, leased product should go permanent.

What this is not

This is not a commitment to lend. Loan terms, amounts, and rates are not guaranteed. Every file still goes through lender approval, credit review, and underwriting.

About the author

Kelly Dutton is a senior commercial mortgage broker at OneClick Commercial Funding in Phoenix. She arranges financing for business owners and real estate investors. She is a broker, not a lender. Read more on the About Kelly Dutton page.

Next step

Call (480) 363-1412 or visit kelly-dutton.com to request a financing call with Kelly Dutton at OneClick Commercial Funding.