Investors searching warehouse financing, industrial property loans, and flex space loans benefit from strong logistics demand — industrial bridge often prices better than office or retail in 2026.
Jaken Finance Group finances industrial and warehouse bridge nationwide — all 50 states. Rates: 8.99%–13.5% interest-only.
Hub: commercial property loans by asset class · Compare: bridge loans
Industrial subtypes
| Type | Typical use | Bridge fit |
|---|---|---|
| Warehouse / distribution | Last-mile, 3PL | Strong — lease-up or NNN stabilized |
| Flex / R&D | Office + warehouse mix | Moderate — tenant credit matters |
| Manufacturing | Production | Environmental Phase I required |
| Cold storage | Food, pharma | Specialized — higher spread |
| Last-mile urban | E-commerce fulfillment | Premium basis — strong rents |
Purchase vs. value-add underwriting
| Scenario | Underwriting basis | Typical LTV |
|---|---|---|
| Stabilized NNN | In-place rent, credit tenant | 70%–75% |
| Vacancy lease-up | Pro forma rent + TI budget | 65%–70% |
| Light rehab | Dock, roof, HVAC scope | LTC-based |
| Office-to-industrial conversion | Business plan + permits | 60%–65% |
NNN vs. gross lease — NOI impact
| Lease type | Owner opex | Lender preference |
|---|---|---|
| NNN (triple net) | Minimal — tenant pays tax, ins, CAM | Preferred on stabilized |
| Modified gross | Owner pays some CAM | Model carefully |
| Full gross | Owner pays all opex | Higher haircut on NOI |
Worked example — vacancy lease-up, Chicagoland flex
28,000 sf flex — DuPage County exurban
| Line | Detail |
|---|---|
| Acquisition | $1,400,000 — 40% occupied |
| TI budget | $120,000 — demising walls, dock leveler, office build-out |
| Bridge | 68% LTC — acquisition + TI holdback |
| Lease-up | 3 new tenants over 10 months → 88% occupied |
| In-place NOI at refi | $118K annual |
| Exit | Community bank at 70% LTV, 7.25%, 25-year am |
| DSCR at refi | 1.29x |
Environmental and physical diligence
| Item | Why it matters |
|---|---|
| Phase I ESA | Prior industrial use — dry cleaner, auto repair |
| Clear height | Modern logistics needs 24’–32’+ |
| Dock count / drive-in doors | Tenant requirement mismatch kills lease-up |
| Roof age | CapEx reserve in pro forma — $4–$8/sf replacement |
| Zoning | Industrial permitted — verify no residential adjacency conflict |
| Remaining WALT | Weighted average lease term — short WALT = refi risk |
2026 industrial market context
E-commerce fulfillment and reshoring continue to support last-mile and infill industrial demand. Obsolete 1980s–1990s office-flex in suburban markets offers value-add basis when repositioned to modern logistics specs — but clear-height and dock retrofit costs must appear in the bridge scope before close.
Jaken Finance Group bridge terms (industrial)
| Parameter | Range |
|---|---|
| Rates | 8.99%–13.5% IO |
| LTV / LTC | Up to 90% of purchase; lower when income is thin |
| Term | 12–24 months |
| Close | 7–10 business days |
Warehouse bridge — worked example
$1.4M acquisition · NNN tenant at 85% occupancy · value-add to 95%
| Phase | Financing | Amount |
|---|---|---|
| Close | Bridge 8.99%–13.5% IO at 68% LTV | ~$952K |
| TI / rollover reserve | Holdback draws | $180K |
| Stabilize month 14 | Bank or SBA refi at 70% on $1.85M | ~$1.30M |
Underwrite tenant credit, remaining term, and market rent vs. in-place — not residential ARV. Owner-occupied warehouse · commercial CRE hub · SBA 504 vs 7(a).
Related programs
- Retail strip center loans
- Hotel & motel financing
- Office building bridge loans
- Special-use commercial property loans
- Commercial rehab loans guide
Get approved · Commercial property calculator
Industrial diligence checklist
- Clear height and column spacing vs tenant requirement
- Dock doors — count, levelers, apron condition
- Roof age and warranty transferability
- Environmental Phase I — prior industrial use
- Truck court circulation and zoning for logistics
- Single-tenant lease — remaining term, options, guarantor
Light industrial vs bulk warehouse
| Light industrial / flex | Bulk warehouse | |
|---|---|---|
| Tenant | SMB, contractor | Logistics, 3PL |
| CapEx | Office buildout, HVAC | Dock, floor load |
| Lease term | 3–5 years | 5–10+ years |
| Bridge thesis | Re-tenant, TI | Often stabilized |
Underwriting mistakes sponsors make
- Underwriting office % of flex without separate TI budget
- Ignoring roof near end of life on 10+ year NNN
- Environmental skipped on former manufacturing
E-commerce tailwind for industrial bridge
Last-mile and 3PL demand supports industrial bridge pricing relative to office and retail in 2026. Stabilized NNN warehouse at 70%–75% LTV on bridge transitions to bank or CMBS permanent at lower rates once lease term and tenant credit are documented.
Pre-qualify industrial bridge · bridge loans for investors · (833) 264-7776
NNN vs. gross lease — underwriting difference
| Lease type | Investor opex | Lender view |
|---|---|---|
| NNN | Tenant pays tax/ins/CAM | Preferred — stable NOI |
| Modified gross | Shared | Haircut 5%–10% on NOI |
| Gross | Landlord pays all | Higher reserve requirement |
Bridge 8.99%–13.5% on value-add shell · retail strip loans · owner-occupied warehouse · commercial calculator.
Construction spending and warehouse jobs in 2026
National headlines still treat every warehouse as a shortage asset. The monthly data is more mixed, and the lease is what the bridge has to survive.
Total manufacturing construction spending was $170.7 billion at a seasonally adjusted annual rate in August 2026. That is $170,701 million on FRED series TLMFGCONS, updated from the Census construction-spending release. Total commercial construction spending was $122.8 billion on the same basis. That reading is $122,810 million on FRED series TLCOMCONS. Both figures are August 2026. They describe the country, not your submarket.
Industrial production, the Federal Reserve index of real output, was 103.07 in August 2026 on a 2017 base of 100. See FRED series INDPRO. Output is a little above the 2017 benchmark. It is not a vertical boom. A manufacturing tenant’s rent still has to be earned from orders, not from the index.
Warehousing and storage employment was 1,831,800 in September 2026, seasonally adjusted. A year earlier it was 1,853,400. Both figures are thousands of persons on FRED series CES4349300001, converted from 1,831.8 and 1,853.4 thousand. The sector shed about 21,600 jobs over that year. Last-mile demand did not vanish. Hiring cooled. Underwrite the tenant and the remaining lease term. Do not underwrite a job-growth slogan.
Phase I is a liability screen, not a stamp
EPA’s all-appropriate-inquiries rule is 40 CFR Part 312. The agency states that ASTM E1527-21, the Phase I standard, is consistent with that rule. So is ASTM E2247-23 for forestland or rural property. A Phase I done to those standards can support statutory defenses under CERCLA: innocent landowner, contiguous property owner, or bona fide prospective purchaser. The source is EPA’s All Appropriate Inquiries page.
Order the Phase I before you waive environmental review, not after the bridge is funded. Former dry cleaners, plating shops, and underground tanks are common on older industrial land. A recognized environmental condition does not always kill the loan. It does change reserves, guaranties, and whether a permanent lender will take the exit. If the report recommends a Phase II, put that cost in the bridge budget before you close.
Clear height, dock count, and truck-court depth still decide lease-up speed. A Phase I does not measure those. Walk the building with the tenant’s spec sheet in hand. If the prospect needs 32-foot clear and the steel stops at 18 feet, the retrofit belongs in the holdback, or the rent pro forma comes down.
Illustration: a dock retrofit that has to earn its keep
Illustration only.
A sponsor buys a 40,000-square-foot suburban warehouse for $3,200,000. In-place occupancy is 70% on short leases. The plan adds two dock positions and a leveler package for $180,000, then leases the dark bay at $8.50 per square foot triple net.
| Line | Figure |
|---|---|
| Dark bay | 12,000 square feet |
| New rent if leased | $102,000 a year |
| Dock budget | $180,000 |
| Simple payback if rent holds | about 1.8 years |
That payback ignores downtime, free rent, and taxes during vacancy. It is a screen, not an appraisal. If lease-up slips two quarters, bridge carry on a $2,300,000 interest-only balance at 11% is about $21,083 a month. That is the balance times 0.11, divided by 12. Two extra quarters cost about $126,500 before the new rent starts. Put that slip in the interest reserve. Jaken Finance Group industrial bridge prices at 8.99%–13.5% interest-only, for 12–24 months, and a complete file closes in 7–10 business days.
Owner-user warehouse versus a leased investment
Most warehouse loans are leased investments. An operating company that will occupy the building is a different exit. Residential investment loans stay non-owner-occupied. An owner-user warehouse can still be a bridge into SBA or conventional permanent debt. Compare SBA 504 and 7(a) with the owner-occupied commercial path before you pick the note.
Bring the rent roll, the Phase I proposal, the dock scope, and the exit lender’s term sheet to the first call. Call (833) 264-7776 or pre-qualify the warehouse.
The lease term is the refinance
Rent per square foot does not close a permanent loan. Remaining term does. A building at 95% occupied with every lease ending in fourteen months is a bridge story, not a bank story. Weighted average lease term is the clock. Add each tenant’s remaining months, weighted by that tenant’s rent, and divide by total rent.
Illustration. Three tenants:
| Tenant | Annual rent | Months left |
|---|---|---|
| A | $80,000 | 36 |
| B | $50,000 | 18 |
| C | $20,000 | 8 |
Weighted months are (80,000 times 36) plus (50,000 times 18) plus (20,000 times 8), divided by $150,000 of rent. That is 3,940,000 divided by 150,000, or about 26 months. A lender who wanted five years of term will still haircut this file. The bridge has to cover the rollover, the downtime, and the tenant-improvement check for tenant C.
Bridge purchase leverage at Jaken Finance Group is up to 90% on a qualified file. The lease-up examples above used the high 60% range because vacancy and tenant work reduced the advance. Those figures are not a separate, lower program. Thin income simply fails the higher test. Term is 12–24 months. A complete file closes in 7–10 business days.
If the permanent lender wants a year of operating history after lease-up, do not set the bridge maturity for the month the last suite is signed. Set it for the month the trailing statement will exist. Extending because that date was never written down is more expensive than sizing the term correctly at the term sheet.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting for loan approvals. Residential investment loans are non-owner-occupied. Owner-user commercial files are underwritten on a separate path.