Spec Industrial Financing · Small Bay Industrial Basecamp

Spec Industrial Financing

Industrial construction is picking back up, but it's a different kind of pipeline than 2022.

Lenders pulled back hard on spec industrial after 2022, and they're increasingly underwriting committed tenancy instead of a pro forma rent growth story. Build to suits and partially preleased projects are absorbing a growing share of new starts in a lot of markets, while pure spec still gets built but usually needs a stronger sponsor or more equity in the stack to get a lender comfortable.

Curious how others here are seeing this play out. Is preleasing becoming the real gatekeeper for industrial financing in your markets, or are lenders still funding spec where the fundamentals are strong enough?

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Spec Industrial Financing