Warehouse & Industrial Financing
Industrial is the asset class everyone wants — until the building is older, single-tenant, or in a secondary market. Then lender selection becomes the deal.
Why industrial deals still miss at the bank
Industrial real estate — warehouses, distribution centers, flex space, and light manufacturing — has been the strongest-performing commercial property sector for years, driven by e-commerce logistics and reshoring. That reputation means big institutions compete for big, new, leased industrial boxes. It does not mean your 1985 warehouse with a month-to-month tenant, your contractor's yard, or your owner-occupied machine shop gets an easy yes.
The deals that stall share a profile: older functional buildings with lower clear heights, single-tenant properties where one vacancy means zero income, specialized improvements like heavy power or cranes that appraisers struggle to value, outdoor storage yards banks don't know how to collateralize, and owner-occupied industrial where the operating business and the real estate are intertwined. Industrial-specialized lenders underwrite all of this as routine — the question is getting your file in front of them instead of a generalist.
Why warehouse and industrial deals get stuck
What industrial lenders look for
How Denali approaches industrial deals
Denali Commercial Mortgage was founded in 2012 in Happy Valley, Oregon, in the Portland metro — a market where industrial runs from last-mile distribution to rural contractor yards. Our team's 40+ years of combined commercial lending and finance experience spans both the institutional-grade boxes and the functional older buildings that actually make up most of the market.
Owner-occupied industrial routes to SBA and conventional owner-user programs with leverage up to 90% — often the strongest execution in all of commercial lending. Investment industrial routes to small balance, bridge, or conduit depending on tenancy and scale, with private money covering the fast or complicated files. Every transaction receives individual review, and terms are quoted per deal — request current terms for your scenario.
How It Works
- 1
Get Qualified
- 2
Consultation
- 3
Documents
- 4
Review
- 5
Term Sheet
- 6
Underwriting
- 7
Conditions
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Closing
Common Questions
My building is older with low clear height. Is it still financeable?
Yes. Functional older industrial serves a real tenant base — local distributors, contractors, and light manufacturers who don't need 36-foot clear. Lenders who know industrial underwrite the building for the user pool it actually serves, at leverage that reflects its liquidity. These buildings are the bulk of the market, whatever the headlines say.
I run my business out of the building I want to buy. What's the best structure?
Owner-occupied industrial is one of the strongest profiles in commercial lending. SBA and conventional owner-user programs finance up to 90% of the purchase, with the business's cash flow qualifying the debt. You'll typically hold the real estate in a separate entity that leases to your operating company — your accountant structures that, we finance it.
The tenant's lease expires in a year. Does that kill a refinance?
It narrows the field, not kills it. Some lenders will underwrite with a short lease if market rents support quick re-leasing; others require a renewal first. If the tenant might leave, bridge capital can carry the property through re-leasing, then permanent debt takes out the bridge once a new lease is signed.
Can outdoor storage yard space be financed?
Yes, with lenders who understand industrial outdoor storage — a genuinely hot sub-sector. The yard's value is underwritten against market land rents for similar uses. Generalist banks often decline these outright; specialized lenders actively seek them.
Tell us about your deal. We will tell you what fits.