Texas industrial real estate is one of the best-performing commercial property sectors in the country. The combination of population growth, e-commerce logistics demand, nearshoring of manufacturing from Mexico, and the state’s central location have pushed warehouse and flex space vacancy rates to historic lows in markets like Houston, DFW, El Paso, and Laredo. If you are financing an industrial property acquisition or refinance in Texas, here is what you need to know about your options.
Types of Industrial Properties We Finance
Industrial is a broad category. The financing structures vary somewhat depending on property type:
- Warehouse and distribution: Clear-height, dock-high facilities used for storage and logistics. Houston and DFW have massive concentrations of these along major freight corridors.
- Flex space: Combination office/warehouse units, typically 2,000–20,000 SF, multi-tenant. Common in suburban Texas markets.
- Light manufacturing: Properties with 3-phase power, heavy floor loads, and some office component. Good collateral for private lenders.
- Cold storage / refrigerated warehouses: Specialized facilities with significant equipment value. Require extra underwriting attention.
- Truck terminals and cross-dock facilities: High lot coverage, ample trailer parking, multiple dock doors. Critical for Texas freight infrastructure.
When Conventional Financing Works
Banks, life companies, and CMBS lenders are generally enthusiastic about stabilized industrial properties in Texas — especially multi-tenant flex or single-tenant NNN warehouses leased to creditworthy tenants. Conventional industrial loans typically offer:
- Rates: 6.5–8% (market dependent)
- LTV: Up to 75% for stabilized assets
- Amortization: 20–25 years
- DSCR requirement: 1.25x minimum
- Processing time: 45–90 days
The bottleneck with conventional financing is time and qualification. If the property is vacant, recently acquired, in lease-up, or if the borrower cannot fully document income, conventional lenders will pass.
Hard Money Industrial Property Loans
Hard money and bridge lending fills the gap when conventional financing is not available or not fast enough. Typical hard money terms for industrial properties in Texas:
- Loan amounts: $500,000 to $25 million
- LTV: Up to 65–70% of appraised value
- Rates: 10–12.5%
- Terms: 6–24 months, interest-only
- Close time: 10–21 days
- No tax returns or income verification required
- Vacant or partially leased properties OK
Common Industrial Loan Scenarios
Acquiring a Vacant Warehouse
You find a 40,000 SF warehouse in Houston’s northwest industrial corridor, priced below market because the last tenant moved out. The seller needs to close in 21 days. A bank cannot lend on vacant industrial. A hard money loan at 65% LTV gets you to close, and you lease it up over the next 6–9 months before refinancing into permanent financing.
Owner-User Purchase Without Full Documentation
A Texas manufacturer wants to buy the building they are currently leasing — 15,000 SF with a loading dock and 3-phase power. The owner is selling, and the tenant wants to own. The manufacturer’s business cash flow does not translate cleanly to a bank loan because of depreciation and pass-through deductions. A stated income or no-doc hard money loan closes the deal, and the borrower refinances into conventional financing when the tax picture clears.
Cash-Out Refinance for Business Capital
A distribution company owns a 60,000 SF warehouse in DFW debt-free. They need $3.5 million to upgrade their loading dock equipment and fund working capital. A hard money cash-out at 60% LTV provides the capital without requiring a bank to underwrite the business operations separately from the real estate.
Value-Add Flex Space Acquisition
A multi-tenant flex complex in Plano has 40% vacancy due to poor management. The asking price is $2.8M, below replacement cost. A hard money acquisition loan closes in 14 days. New management turns the property around over 12 months, and the investor refinances into CMBS with 90% occupancy.
Texas Industrial Markets
We lend throughout Texas, with the strongest deal flow in:
- Houston: Katy Freeway corridor, northwest Houston, south Houston near the port, and the Greenspoint/Hardy Toll Road area
- DFW: Great Southwest/Arlington, Southlake/Grapevine near DFW Airport, South Dallas, and Garland/Mesquite
- San Antonio: I-35 corridor, Kelly Field area, and Port San Antonio logistics hub
- El Paso and Laredo: Border logistics, maquiladora supply chain support, import/export warehousing
- Austin: Round Rock, Pflugerville, and Buda/Kyle along the I-35 growth corridor
Get an Industrial Property Loan Quote
Whether you are closing on an acquisition in 2 weeks or refinancing an owner-occupied warehouse, we can structure a loan that fits. Call (877) 695-3034 or use the form on this page to submit your deal. We issue term sheets within 24 hours for qualifying properties.