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Mortgage Squad Advisors
Industrial / Warehouse

Industrial mortgages — the most lender-favoured asset class in Canada.

Single-tenant industrial, multi-tenant flex, distribution, last-mile, cold storage, R&D, manufacturing. Industrial vacancy in major Canadian markets remains under 3% — lenders compete hard for these assets, and we know which ones price most aggressively for your specific use case.

Term sheets in 5–10 days35+ industrial-active lenders Environmental coordination in-house
5-star rated| FSRA #13737| 5-min pre-qualification
Warehouse, distribution, light industrial
Borrow up to 75% of the property's value
Industrial is the most lender-favoured commercial asset class right now. Clean files close in 45–75 days.
65–75%
Conventional LTV
20–25y
Amortization
45–75d
To funding
A-bank
Senior debt fit
Industrial deal size
Loan amount$8.0M
Senior + bridge layered for value-add plays.
Get pre-approved DSCR math
Maya · AI · 24/7
Best lender for an industrial warehouse?
5-star rated| FSRA #13737| 50+ langs
Up to 90%
LTV (owner-occ)
<3%
Vacancy in major markets
5-10d
Term sheet turn
35+
Industrial lender partners

Industrial is the strongest pricing in Canadian commercial right now — but banks underwrite to a single asset-class rate sheet that doesn't differentiate between a last-mile distribution facility with an investment-grade 3PL and a 1980s manufacturing conversion to flex space. Owner-occupied SBA-style programs sit at the same bank but on a different desk that the commercial team rarely calls. Environmental Phase 1 risk gets surfaced after the term sheet — too late to pivot. We pre-screen environmental and use-case before submission, route to the right lender desk from day one, and have placed enough industrial across 35+ lenders to know who actually competes for distribution vs cold storage vs heavy manufacturing.

Financing options

Five financing structures for industrial real estate.

Owner-occupied vs investment. Single-tenant vs multi-tenant. Distribution vs manufacturing. Each profile has its own preferred lender list — and pricing varies by 50–100bps across them.

Owner-Occupied SBA-style

For business owners buying their own building. Up to 90% LTV. Effective cost of capital often beats leasing.

$500k – $10M45-75 days

Investment Industrial

Single-tenant or multi-tenant investment property. 65–75% LTV, conventional A-bank or monoline. Long leases price tightest.

$1M – $25M45-75 days

Bridge / Reposition

Vacant lease-up, manufacturing-to-distribution conversion, environmental remediation. 65–75% LTV, 1–3 yr term.

$1M – $20M21-35 days

Build-to-Suit Construction

Pre-leased construction with single-tenant credit. Construction draws + permanent takeout structured together.

$2M – $50M+60-120 days

Refinance / Equity Take-Out

Pull equity from stabilized industrial at lower rate or longer am. Industrial cap rates have compressed — equity is sitting there.

$1M – $25M45-90 days
What we finance

Industrial sub-classes we finance.

Last-mile distribution prices differently from heavy manufacturing. Cold storage prices differently from flex. Environmental risk profile is the second factor; the first is appetite.

🚚
Distribution / Last-Mile
E-commerce, 3PL, courier
🏭
Manufacturing
Light, heavy, food-grade
❄️
Cold Storage
Refrigerated + frozen
🔬
R&D / Lab
Life sciences, biotech
📦
Flex Space
Office + warehouse mix
🏗️
Heavy Industrial
Yard, crane, rail-served
💻
Data Centres
Tier I-III, colocation
🛠️
Owner-Occupied
Self-use SBA-style
What you get

Why sponsors choose Mortgage Squad Advisors.

Up to 75% LTV conventional, up to 90% LTV owner-occupied via SBA-style programs
Distribution vs cold storage vs flex modelled with separate lender shortlists (50-100bps swing)
Environmental Phase 1 / Phase 2 coordination handled by our team — no surprises
Investment-grade tenant credit overlay applied — long-WALT files price tightest
Build-to-suit construction + permanent takeout structured as one transaction
Bridge financing for lease-up, manufacturing-to-distribution conversion, or remediation
Tenant estoppels + ALTA + structural orchestrated end-to-end
$0 placement fee on most senior debt — lender pays our compensation
Term sheets in 5–10 business days from sponsor + building submission
9-week median close on clean industrial files
Maya · 24/7 AI advisor

Have a question right now? Maya answers instantly in 50+ languages.

Chat Call
How it works

From offer to funded — six to ten weeks.

Industrial closes faster than CMHC multi-family. The pacing item on most files is the environmental Phase 1 (and Phase 2 if triggered) — we coordinate that workstream alongside underwriting.

1

Asset + sponsor intake

Building specs, tenant or use, T12 if investment, sponsor profile. We assess ceiling height, dock count, power, environmental flags.

2

Lender shortlist

3-5 lenders sized to use case (distribution vs manufacturing vs cold). Indicative pricing in 5-10 days.

3

Environmental

Phase 1 ESA ordered. If triggers, Phase 2 follow-up. We pre-flag environmental risk so the lender list is realistic from day 1.

4

Conditions

Appraisal, structural, insurance, ALTA, lawyer's opinion, tenant estoppels (investment files).

5

Funding

Lawyer closes. Funds disburse to vendor (acquisition), existing lender (refinance), or per draws (construction).

Run the math first
Why a broker beats your bank

Industrial gets won by the lender who actually wants the deal.

Last-mile distribution to a 3PL prices differently than a 1980s-era manufacturing converted to flex. We know which lenders price aggressively on which use cases.

Capability
Mortgage Squad Advisors
Your bank
Lenders shopped
35+ industrial-active lenders
1
Use-case-specific pricing
Distribution vs cold vs flex modelled separately
One blanket rate
Environmental risk underwriting
Phase 1/2 coordinated by our team
Sponsor's responsibility
Owner-occupied SBA-style
Pre-vetted relationships
Rare or referred out
Build-to-suit construction
Construction + permanent as one transaction
Often two separate processes
Time to first quote
5-10 days
3-6 weeks
Tenant credit overlay
Investment-grade pricing tier
Generic asset-class rate

“We were buying a 110,000 sq ft last-mile distribution facility in Mississauga with a 7-year lease to a publicly-traded 3PL. Our existing banker quoted 70% LTV at GoC + 235. Mortgage Squad Advisors shopped six lenders, and we closed at 75% LTV at GoC + 195 — saved us about $4M of equity and $310k a year in interest. The whole thing took 9 weeks from intake.”

— Sundeep K., Managing Partner, Peel Industrial Holdings
By market

Industrial / Warehouse across major Canadian markets

We place commercial files coast to coast. Pick your market for local context and start a pre-qualification with your deal in mind.

Toronto
GTA
Vaughan
GTA
Mississauga
GTA
Brampton
GTA
Markham
GTA
Oakville
GTA
Richmond Hill
GTA
Burlington
GTA / Halton

Don’t see your city? Browse all Canadian markets — commercial coverage is national.

How are industrial and warehouse mortgages underwritten in Canada?

Industrial financing is underwritten on the building's cash flow, not its sticker price. Lenders start with net operating income (NOI) — gross rent less vacancy, taxes, insurance, management and reserves — then divide it by annual debt service to get the debt-service coverage ratio (DSCR). Most A-lenders and monolines want a DSCR around 1.20–1.25x or higher on stabilized industrial, leaving a cushion if a tenant rolls or rates reset at renewal.

Leverage typically lands at 65–75% loan-to-value (LTV) for conventional investment files, with the takeout sized to the lower of LTV and what DSCR will support. Industrial — warehouse, logistics, last-mile distribution and light manufacturing — has been one of the strongest commercial asset classes in Canada, with sub-3% vacancy in major markets driving deeper lender appetite, firmer values and competitive pricing. We model NOI, DSCR and LTV before submission so the term sheet you sign is the one that actually funds.

What property specifics do industrial lenders scrutinize?

Beyond the numbers, lenders and appraisers underwrite the building's functional specs — because those drive re-leasability if the current tenant leaves. Clear ceiling height is the headline metric: modern distribution wants 32–40 ft clear, while older stock at 18–24 ft limits the tenant pool and can soften value. Loading is next — dock-high doors, drive-in ramps, trailer parking and truck-court depth all matter for logistics use.

Lenders also confirm zoning permits the actual use (and that the use is legal-conforming), assess power supply including whether adequate three-phase service is in place for manufacturing or refrigeration, and weigh location and highway or intermodal access. Tenancy structure is a major factor: a single-tenant building on a long lease to a strong covenant prices tightest but carries binary rollover risk, while multi-tenant flex diversifies income across several smaller bays. We pre-flag any spec that narrows the lender list so your shortlist is realistic from day one.

Owner-occupied vs leased investment — how does each get financed?

How your industrial building is financed depends on who occupies it. If your own business operates from the property (owner-occupied), lenders can underwrite against your company's cash flow and global financials, not just market rent — which often unlocks higher leverage than a pure investment file. Eligible owner-occupied real-property purchases may also access the Canada Small Business Financing Program, a federal program that shares loan risk with lenders and can support real estate acquisitions within program limits.

A leased investment property is underwritten on the lease itself — tenant covenant strength, remaining term and weighted lease term (WALT), rent versus market, and the resulting NOI and DSCR. Long leases to investment-grade tenants price tightest; short-WALT or vacant space pushes toward bridge or value-add structures. Personal guarantees are common on both, especially below institutional deal sizes. We structure each path to its correct lender desk — the two rarely sit together inside the same bank.

How do environmental reports and due diligence affect industrial approval?

Environmental review is the item most likely to set the timeline on an industrial deal. Because industrial sites carry a higher historical risk of soil or groundwater contamination — from past manufacturing, fuel storage, plating, chemicals or printing — most lenders require a Phase I Environmental Site Assessment (ESA) as a standard condition. A clean Phase I with no recommendations usually clears the file.

If the Phase I flags a potential concern, the lender will require a Phase II ESA with intrusive soil and groundwater sampling, which adds weeks and can change the outcome. Confirmed contamination doesn't automatically kill a deal: it may move to a private or MIC lender priced for the risk, proceed with a remediation holdback, or close once a clean Record of Site Condition is obtained. Alongside environmental, lenders order appraisal, building condition and structural reviews, title and survey, and insurance. We pre-screen environmental exposure before submission so a late-stage Phase II doesn't blow up your closing.

Why use a commercial mortgage broker for an industrial deal?

Your bank underwrites industrial off a single rate sheet that can't tell a last-mile distribution centre apart from a 1980s manufacturing conversion. A specialist broker shops the deal. Mortgage Squad Advisors runs a full commercial desk with 100+ lender relationships — A-banks, credit unions, monolines, and specialty and private commercial lenders — so distribution, cold storage, flex and heavy industrial each get routed to the lenders that genuinely compete for that use case, where pricing can swing 50–100bps.

That reach matters most on the hard files: owner-occupied programs, environmental-flagged sites, bridge-to-stabilization, and build-to-suit construction with a permanent takeout structured as one transaction. We pre-screen use case and environmental risk, structure DSCR and leverage to fit the right desk from day one, and move fast. We're FSRA-licensed #13737, disclose our compensation in writing on every deal, and serve clients in 50+ languages. You get options, structuring and speed — not one bank's blanket answer.

FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Why is industrial pricing so aggressive right now?
Industrial vacancy in the GTA, GVA, and Calgary remains under 3% with strong rent growth. E-commerce and re-shoring of manufacturing are driving sustained demand. Lenders see industrial as one of the safest commercial asset classes — that translates into deeper appetite, higher LTVs, and tighter pricing.
What LTV can I get on owner-occupied industrial?
Up to 90% via SBA-style programs (BDC, Vancity, partner credit unions, plus several A-bank programs designed for owner-occupied). The remaining 10-20% can sometimes come from a vendor take-back or a small mezzanine layer. Owner-occupied is one of the highest-leverage commercial structures in Canada.
Will environmental Phase 1 issues kill my deal?
Not necessarily. Most lenders accept Phase 1 reports with no recommendations as cleared. If recommendations trigger Phase 2, the deal may shift to a private/MIC lender priced for environmental risk, or proceed to remediation with a holdback. We pre-screen environmental risk before submission to avoid surprises.
Can you finance cold storage / refrigerated facilities?
Yes — though the lender list narrows. Cold storage requires specialized appraisal and operating-cost underwriting (refrigeration is a major opex line). Most A-bank lenders price cold storage 25-50bps wider than dry distribution; a few specialized lenders price it equally.
What about manufacturing buildings — single-tenant heavy industrial?
Lender appetite varies sharply by industry. Food, beverage, packaging, and aerospace tenants price tightest. Heavier industries (chemicals, metalworking, paint, plating) face environmental scrutiny and a narrower lender list. We model both before submission.
Will lenders finance a multi-tenant flex building?
Yes. Multi-tenant flex (small-bay industrial with 5-15 tenants) is a solid asset class — diversified income, low default risk, strong demand. Pricing is comparable to single-tenant if WALT is healthy.
What's the typical industrial mortgage rate?
5-yr fixed conventional industrial prices around 5-yr GoC + 150-225bps for stabilized assets with strong tenants. Owner-occupied SBA-style runs 5-yr GoC + 175-275bps but at much higher leverage. Bridge runs 8-11%.
What documents will I need?
Asset: T12 (investment), lease(s), property survey, environmental Phase 1, appraisal (lender-ordered), insurance. Owner-occupied: 2 years of T2s, T1 + NoA for principals, business banking. Sponsor: REO schedule, government ID, banking.

Editorial commitment

This industrial / warehouse page is an editorial profile written from our brokerage’s perspective by Mortgage Squad Advisors Editorial Team · Licensed Mortgage Advisors · Reviewed under the Principal Broker. We receive no compensation from any specific lender for this content. On most commercial files the lender pays our placement fee; we disclose compensation in writing on every deal. Program details and rates are reviewed quarterly; last reviewed May 13, 2026.

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Industrial deal in the works? Let's get a term sheet out fast.

Send us building specs + tenant or use case. We'll have indicative pricing back to you in 5 business days. Industrial is currently our fastest-closing commercial product line.