Asset Class
Industrial properties span the logistics, warehouse, and light manufacturing spectrum. Bridge capital supports acquisitions, lease-up, and repositioning of industrial assets in markets driven by e-commerce and supply chain demand.
Market Overview
Industrial real estate remains one of the most resilient CRE asset classes heading into 2026. Cap rates have stabilized, with Class A, B, and C industrial averaging approximately 5.28%, 6.02%, and 7.38% respectively. Investors anticipate gradual interest rate decreases in the second half of 2026, which could compress cap rates further in core distribution markets.
Leasing activity recovered in late 2025, driven by large-scale logistics occupiers taking buildings over 500,000 square feet. Occupiers are consolidating into larger, more efficient Class A facilities and shifting toward lower-cost interior markets over expensive coastal locations. Build-to-suit development remains active for credit tenants.
Long-term demand fundamentals are strong: limited new supply, increasing occupancy, and continued growth in e-commerce, onshoring, and AI-driven supply chain optimization all support the industrial thesis. Value-add investors are targeting shorter lease terms and below-market rents for mark-to-market upside, while core capital pursues premium logistics assets in major distribution hubs.
Our Approach
H Equities evaluates industrial deals based on location, tenant quality, lease structure, and logistics demand fundamentals. Our platform is built to move quickly on transitional industrial assets that need bridge capital for acquisitions, lease-up, or repositioning.
Financing Options
Senior bridge loans for industrial acquisitions, lease-up, and repositioning. We underwrite to location fundamentals, tenant credit, and logistics demand drivers.
Learn more →Subordinate debt for industrial transactions requiring leverage beyond senior mortgage proceeds.
Learn more →Key Considerations
Clear height, column spacing, truck court depth, and dock configuration directly impact tenant demand and achievable rents.
Proximity to transportation infrastructure -- interstate access, ports, rail, and airports -- is a primary value driver for logistics tenants.
Evaluate environmental risk carefully; industrial properties carry higher Phase I/II due diligence requirements than other asset classes.
Tenant credit quality varies widely in industrial; understand the difference between investment-grade logistics tenants and small manufacturing operators.
New supply pipelines in major distribution markets can impact occupancy and rent growth projections -- model absorption carefully.
FAQ
Industrial properties in transition -- lease-up, value-add repositioning, or tenant turnover -- are the primary use case for bridge loans. Stabilized industrial with long-term credit tenants typically qualifies for permanent financing directly.
Warehouse, distribution, light manufacturing, and flex industrial are all financeable. The focus is on properties in markets with strong logistics demand, transportation access, and employment growth.
Bridge lenders are typically active on industrial transactions from $5M to $50M for senior bridge loans. Mezzanine and additional leverage products are available on a case-by-case basis.
Underwriting focuses on the business plan, renovation scope, lease-up timeline, and comparable rent achievability. Below-market rents with mark-to-market potential and strong location fundamentals are key criteria.
Tell us the basics -- asset class, size, market, and business plan. We'll come back with a real answer.