What Tenants Look for in Industrial Properties (15K–120K SF)
When it comes to industrial real estate, tenant needs go far beyond square footage. For businesses searching in the 15,000–120,000 square foot range, functionality, efficiency, and location play critical roles in decision-making. Understanding what tenants prioritize can help owners and investors position their properties competitively in today’s market.
1. Location and Accessibility
Proximity to major highways, ports, airports, and rail lines is often a top priority. Tenants want to minimize transportation costs and maximize speed-to-market. Local labor availability also factors heavily into site selection, as businesses depend on reliable staffing to keep operations running.
2. Clear Height and Loading Capabilities
For industrial users, building design features can be deal-makers. Clear height directly impacts racking and storage capabilities, while dock-high and grade-level doors influence logistics efficiency. A tenant operating in 50,000 SF may value 28–32’ clear heights with multiple dock doors, whereas a 100,000 SF tenant could require 36’+ clear heights and cross-dock configurations.
3. Power and Infrastructure
Adequate power, sprinkler systems, HVAC, and fiber connectivity are essential for many industrial tenants. Users in light manufacturing or high-tech distribution often need more than just standard utility capacity, and facilities that offer flexibility to scale power or add systems stand out.
4. Parking and Yard Space
Car and trailer parking often go overlooked but are highly important to tenants. Sufficient trailer storage, truck courts, and maneuvering space are critical for logistics-heavy tenants. Employee parking can also be a deciding factor in markets with large workforces
5. Flexibility and Expansion Potential
Businesses seek spaces that can adapt to their changing needs. Modular office buildouts, demisable floor plans, and room for future expansion make a property more attractive. For tenants in growth mode, the ability to expand within the park or building is a strong selling point.
6. ESG and Modern Building Standards
Sustainability and energy efficiency are no longer optional for many tenants. Modern features such as LED lighting, energy-efficient HVAC, solar capabilities, and LEED certifications appeal to tenants looking to reduce operating costs and align with corporate ESG goals.
7. Competitive Economics
Ultimately, rent structures, operating expenses, and tenant improvement (TI) packages matter. Tenants compare total occupancy costs alongside property features. Owners who balance competitive pricing with value-added amenities often win more leases.
Final Takeaway
Industrial tenants in the 15K–120K SF range are focused on more than just space—they’re looking for efficiency, scalability, and cost-effectiveness. Investors and owners who align their properties with tenant priorities will be better positioned to capture demand in this competitive segment of the market.
