Warehouses: The Quiet Overachievers of Commercial Property
- Josh
- Jul 10, 2025
- 3 min read
Updated: Aug 29, 2025
When someone says “commercial property,” most people picture glassy office blocks or retail units with more footfall than a tube station at rush hour. But let’s take a moment to appreciate the unsung hero of the sector.
The industrial unit.
Not glamorous. Not Instagrammable. But quietly brilliant.
And at the centre of this industrial charm offensive? Warehouses. Yes, those big boxes on the edge of town. The ones that don’t shout, but definitely deliver.
Why Warehouse Tenants Are the Landlord’s Dream
If you’re a UK-based SME owner looking to scale, secure funding, or simply diversify your portfolio without losing sleep, warehouses offer three things in short supply these days: stability, scalability, and sanity.
1. Predictability Over Pizzazz
Unlike trendy cafés or boutique salons that come and go with the seasons (and the whims of influencers), warehouses are home to logistics hubs, manufacturing bases, and distribution centres. These are not businesses that pivot to candle-making on a whim. They’re operationally essential — and that makes them sticky.
2. Long Leases, Low Turnover
Warehouse tenants don’t just move in — they settle. Leases of 5, 10, even 15 years are common. Why? Because relocating a warehouse is like trying to move a fully grown oak tree. Painful, expensive, and best avoided.
These tenants invest in their space — racking systems, IT infrastructure, climate control, possibly even a forklift or two. Once they’re in, they’re in. Which means you get reliable, long-term income and minimal tenant drama. No constant re-letting. No expensive refits. No “we’re pivoting to a pop-up” emails.
3. Infrastructure, Not Just Square Footage
To a growing business, a warehouse isn’t just a building — it’s the nerve centre. It’s where stock is stored, orders are fulfilled, and operations are streamlined. One well-located unit can replace multiple smaller sites, reducing costs and complexity.
And because these businesses rely on consistency, they’re not going anywhere fast. They’re not chasing trends — they’re building infrastructure. And infrastructure doesn’t move on a whim.
Yes, You Can Get a Mortgage for One
Thinking of buying an industrial unit? Good news: lenders love them. Whether it’s for your own business or as an investment, commercial mortgages for warehouses are very much a thing.
Here’s what lenders typically want to see:
Strong financials (yours or your tenant’s)
A decent deposit (usually 25–40%)
A sensible location (near a nice big road)
Good credit history (showing you won't be a headache)
Loan-to-value ratios usually sit between 60–75%, and while the process is more involved than a residential mortgage, a good commercial broker can make it feel almost painless. Almost.
Need expert commercial mortgage advice?
The Low-Maintenance Landlord Life
Owning a warehouse is refreshingly undramatic. No footfall worries. No seasonal sales slumps. No plumbing nightmares caused by overenthusiastic hair salon sinks.
You’re dealing with a big, open-plan space. Solid infrastructure. Minimal wear and tear. And tenants who are far too busy fulfilling orders to cause trouble.
For SME owners juggling a thousand other things, this kind of low-maintenance investment is a breath of fresh, industrially filtered air.
So… Is It Time to Think Inside the Box?
If your business is growing — or if you’re simply tired of the volatility that comes with other commercial sectors — warehouses deserve your attention.
They’ve outperformed during downturns, benefited from the e-commerce boom, and continue to be in high demand. Good units in strategic locations are increasingly scarce, which only adds to their long-term value.
You’re not just buying a building. You’re buying reliability, resilience, and a tenant who probably knows how to reverse a lorry.
Need expert commercial mortgage advice?
