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What to Check Before Buying Industrial Property.

A clear checklist of what to check before buying industrial property — from clear height and loading to environmental and power.

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Building Specifications

What the building
actually needs to do.

Clear Height
The usable clear height from the finished floor to the lowest structural obstruction. Modern logistics requires 32–40 ft clear. Sub-24 ft buildings are limited to light industrial and manufacturing uses and command a significant discount.
Loading Configuration
Dock-level loading (for truck trailers) vs grade-level (drive-in). Number of dock doors relative to building size. Dock levellers, seals, and locks. Truck court depth — minimum 130 ft for standard trailers, 185 ft for cross-dock.
Power Supply
Total available amps and voltage configuration. Manufacturing and data-adjacent uses require 800–2,000+ amps. Confirm with the local utility — upgrade timelines and costs can be material.
Column Spacing
Wide-bay (50 × 50 ft or larger) is preferred for racking and logistics. Narrow-bay buildings are suited to manufacturing but restrict future flexibility and limit the buyer pool at resale.
Yard & Secured Area
Fenced and secured trailer storage, outside storage zoning, and paved vs gravel surfaces. Logistics users in particular pay a significant premium for functional secured yards.
HVAC & Heating
Age and type of rooftop HVAC units, heating system (gas-fired unit heaters vs HVAC), condition of the roof membrane. Roof replacement and HVAC overhaul are the most common capital expenditure items at acquisition.

Environmental & Lease Considerations

The two areas that
most buyers underestimate.

Environmental: A Phase I Environmental Site Assessment is standard for any industrial acquisition. Former automotive, dry cleaning, fuel storage, or manufacturing uses trigger Phase II (soil/groundwater sampling). Environmental remediation can be six or seven figures — do not waive this condition.

Lease review (if tenanted): Confirm the existing net rent against market, remaining term and renewal options, tenant's repair obligations, and any demolition or relocation clauses. A long-term lease at below-market rent in a rising market is an asset; the same lease in a falling market is a liability that transfers to the buyer.

$50M+
Transactions Closed
10+
Years Experience
2
Provinces Licensed
RECO · RECA
Dual-Province

Insights · Buy

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