Can I Mortgage That Warehouse? (Spoiler: Yes, and Here’s How)
- Henry
- Jul 10, 2025
- 3 min read
Updated: Aug 29, 2025
When someone says “industrial property,” most people picture a grey box the size of a football pitch, possibly haunted by forklifts and the ghost of logistics past. But in today’s economy, these steel-clad giants are no longer just storage units with delusions of grandeur — they’re investment darlings.
So, can you actually buy one? More importantly, can you get a commercial mortgage to do it?
Yes. And here’s how — minus the jargon, plus a few reality checks.
Why Industrial Property Is Suddenly the Cool Kid
Once the overlooked cousin of shiny office blocks and high-street shops, industrial units are now the backbone of ecommerce, logistics, light manufacturing, and even the occasional craft gin distillery. (Because of course.)
Their appeal? Versatility. One unit might house a courier depot, the next a microbrewery, and the third a tech startup that insists on calling it a “maker space.” With the right zoning and postcode, these units are in high demand — and that means stable rental income and rising values.
As cities sprawl and next-day delivery becomes the norm, industrial space near urban centres is becoming prime real estate. Investors and business owners have noticed. So should you.
Can You Get a Commercial Mortgage for One?
Short answer: yes. Longer answer: yes, but it’s not like buying a flat in Croydon.
Commercial mortgages are available for industrial units, but lenders will want more than just your credit score and a winning smile.
They’ll look at:
Your business plan (yes, you need one)
The property’s income potential (rental or operational)
Tenant situation (if it’s already let)
Risk profile (location, condition, market demand)
Expect to put down a deposit of 25–40%. The exact figure depends on the lender, the property, and how convincing your spreadsheet game is. Unlike residential mortgages, where your salary does the talking, here it’s all about how the property pays for itself.
Rates? Usually higher than residential. Terms? Often shorter — think 10 to 25 years. Flexibility? Depends on how much risk you’re willing to juggle.
Need expert commercial mortgage advice?
Why Bother? The Perks of Financing Industrial Units
Leverage: You can buy a bigger, better asset without emptying your war chest.
Control: No more landlords. Your mortgage payments build your equity, not theirs.
Value-add potential: Industrial units are often modular, meaning you can reconfigure, subdivide, or upgrade them without needing a PhD in architecture.
If you’re in a growth area, the returns can be solid — both in rental yield and capital appreciation. And if you’re using the space for your own business, you’re investing in yourself. Which is very on-brand for 2025.
What Could Go Wrong? (Because Something Always Can)
Lender caution: If the unit is highly specialised or in a sleepy postcode, expect more scrutiny.
Maintenance costs: Older units can be money pits. Budget accordingly.
Vacancy risk: If you’re leasing it out, tenant turnover can sting — unless you’re in a high-demand area.
Interest rate volatility: Commercial rates can swing more than residential ones. Build in a buffer.
In short: do your homework. And maybe a stress test or two.
Final Thought: Is It the Right Move?
Financing an industrial unit can be a savvy play — whether you’re an investor chasing yield, a business owner needing space, or someone who’s outgrown the buy-to-let game.
But it’s not a casual decision. You’ll need:
A decent deposit
A clear repayment plan
A property in a location with real demand
If the numbers stack up, it could be one of the smartest moves you make. If they don’t, well — there’s always storage.
Need expert commercial mortgage advice?
