How to Underwrite an Industrial Property in 2025
Key Takeaways Maintain a loan-to-value ratio below 75% and target a debt coverage ratio above 1.25. Scrutinize net operating income, modern expense benchmarks, zoning, and tenant profiles for robust underwriting. Consider incorporating automation and advanced risk controls to optimize returns and safeguard your investment. Best Practices for Evaluating Industrial Real Estate Investments When you underwrite an industrial property in the U.S. for 2025, you’ll need to nail the basics—keep your loan-to-value ratio below 75% and look for debt coverage over 1.25 . Examine net operating income, compare expenses to modern benchmarks, and always check the location for strong logistics and proper zoning. Protect your investment by studying tenants and lease terms, plus boost returns with automation and risk controls . There’s even more you can discover to strengthen your investment strategy. Loan-to-Value Ratios and Debt Service Coverage Requirements When you immerse yourself in underwriting in...