Industrial property acquisitions are complex. The building that looks right from the road may have inadequate power, problematic environmental status, structural deferred maintenance or a yard configuration that does not work for your operation. These six due diligence areas determine whether an industrial building is the right acquisition.
1. Clear Height
Clear height — the usable height from finished floor to the lowest obstruction — is the most frequently misrepresented specification in industrial property listings. Verify it yourself with a tape measure. For most logistics and warehousing users, a minimum of 28 ft is functional; 32–36 ft is preferred for racked storage. Sub-24 ft buildings are functionally obsolete for many users and will trade at a significant discount on resale.
2. Power Availability
Verify the existing electrical service: amperage, voltage and transformer capacity. Request the utility company's confirmation of available power at the property. Manufacturing users, cold storage operators and anyone considering an EV fleet or data-intensive operation must verify power availability before removing conditions — electrical upgrades are expensive and sometimes not achievable on a given site.
3. Environmental Status
Request a Phase 1 Environmental Site Assessment as a condition of purchase on every industrial acquisition. Historical use of the site determines Phase 1 findings; if there is a recognised environmental condition, a Phase 2 (soil and groundwater testing) is triggered. Never waive environmental conditions on industrial property. Remediation costs can exceed property value on contaminated sites.
4. Zoning and Permitted Use
Confirm that your intended use is specifically permitted — not merely compatible — under the current zoning and official plan designation. Employment, prestige industrial, light industrial and general industrial designations carry different restrictions on noise, outdoor storage, number of employees, and accessory uses. A zoning confirmation letter from the municipality is the most reliable way to verify this.
5. Structural and Mechanical Condition
Commission a building condition assessment from a qualified structural and mechanical engineer. Key areas: roof condition and remaining life, dock leveller condition, HVAC systems, column spacing and loading capacity, and the structural integrity of the yard surface. Budget for deferred maintenance you inherit at acquisition.
6. Yard Configuration
Yard depth, surface condition and access configuration matter as much as the building itself for logistics users. A minimum 130 ft truck court is required for standard 53-foot trailers. Confirm available trailer storage, security options and the weight rating of the yard surface. Inadequate yard configuration eliminates a significant portion of the potential tenant pool at resale.