Industrial Property Loans in California
California industrial — recent closings (May 2026): mostly low-to-mid 6s (roughly 6.0%–6.7%) fixed for permanent financing, priced over the 5-year Treasury at about +2.25–2.5%. $5M–$30M · 15–30 day typical close.
The figures above reflect actual, recently closed commercial real estate transactions and are accurate as reported as of May 2026. They are historical market data — not an indication or offer of the rate or terms you will receive; your terms depend on the property, sponsor, market, and lender underwriting and will vary. Northern Ridge Capital arranges commercial real estate financing only (no residential) and is a licensed mortgage broker (CA DRE #02093377), not a lender. See full disclosures.
California industrial runs on the ports and the Inland Empire, and lenders underwrite it that way. Clear height, truck-court depth, dock-door count, and distance to the Los Angeles and Long Beach port complex drive how a lender values your building, more than almost any other asset class. After a historic run, the Inland Empire has cooled to a tenant’s market with rents off their peak, which changes what lenders will size, even though long-term demand from the ports remains enormous. Northern Ridge Capital places $5M–$30M industrial debt across California (warehouse, distribution, flex, last-mile, and IOS) by making lenders compete on the specifics of your asset instead of taking the first quote. We’re a broker, not a lender.
Financing or refinancing a California industrial property?
Talk to a debt broker →Stop wasting deals on the wrong lenders
Strong long-term appetite for California industrial is leverage, but only if you create competition. Banks, life companies, CMBS, and debt funds all price quality industrial differently, and they read functional obsolescence, rollover, and submarket softness their own ways. Specialized product (cold storage, manufacturing, IOS) needs lenders who actually underwrite it. We position your asset for the lenders most likely to win it from a network of 700+, then run them against each other on rate, leverage, recourse, and structure.
The California industrial market: what lenders are actually pricing
The Inland Empire is one of the largest industrial markets in the country, and it is in a real correction that lenders are pricing in. CBRE put Inland Empire vacancy near 9.9% in Q1 2026, up from the prior quarter and well above the roughly 4% ten-year average, with negative net absorption for the quarter as several large tenants vacated big blocks. Asking rents have come well off their 2023 peak, and multiple brokerages describe it as a tenant’s market. The demand engine underneath it, though, is intact: the Port of Long Beach set a cargo record in 2025 and projected roughly 9 million TEUs again for 2026, and together the Los Angeles and Long Beach ports handle close to a third of all U.S. containerized trade. That import volume still needs warehousing, last-mile space, and distribution nearby. For lenders, the read is a strong long-term thesis paired with near-term caution: they favor functional buildings with modern clear height and truck courts, durable tenancy, and locations tied to the ports or last-mile density, and they underwrite lease rollover and submarket vacancy more carefully than they did two years ago. New construction is running below historical norms, which supports a recovery as absorption improves. The owners who finance best are the ones who present a functional, well-located asset and let several lenders compete on it.
What’s different about financing industrial in California
Industrial underwriting in California is a physical-and-locational read before it is a financial one. Clear height, column spacing, dock-door count, truck-court depth, and trailer parking decide whether a building is functionally modern or quietly obsolete, and a lender prices that gap hard. Location relative to the Los Angeles and Long Beach ports and to last-mile population density matters just as much, because it dictates who the future tenant is. Layer in a cooling Inland Empire, where CBRE pegged Q1 2026 vacancy near 9.9% and rents off peak, and lenders are more focused on lease rollover and re-leasing assumptions than during the boom. Specialized assets add another wrinkle: cold storage, manufacturing, and industrial outdoor storage (IOS) each need lenders who underwrite that subtype rather than a generic warehouse comp. Prop 13 reassessment on a sale can also lift the tax load a lender sizes to. The result is that two similar-looking buildings can draw very different terms based on their bones, their location, and their tenancy. Matching the asset to the lender who reads it correctly is the whole job.
What our recent California closings show on pricing
In our recent California industrial closings, permanent pricing ran roughly 6.0% to 6.7%, mostly low-to-mid 6s fixed, priced over the 5-year Treasury or CMT at about +2.25% to +2.5%, with some executions floating over SOFR or CMT (closed-deal data as of May 2026, not an offer). Functional, well-located, well-leased assets generally set the low end, while older or vacancy-exposed buildings priced wider. Read these as where the market has actually cleared, then let a competitive process find your number.
Typical California industrial terms
| Loan size | $5M–$30M |
| Rate basis | Mostly fixed over the 5-yr Treasury / CMT (recent CA closings ~+2.25–2.5%); floating over SOFR available |
| Leverage | Commonly up to ~65–70% LTV on stabilized assets, sensitive to functionality and submarket vacancy |
| Term / amortization | 5, 7, or 10-year terms; 25–30-year amortization |
| Recourse | Non-recourse options on quality stabilized assets |
| Close time | 15–30 days typical on a clean, lender-ready file |
Structure shown is typical, not a quote or commitment; actual terms are set by third-party lenders subject to underwriting. See disclosures.
When it fits
Acquisition
Buying a California industrial asset? In a tenant-favorable Inland Empire, re-leasing assumptions and building functionality decide the loan. Line up debt early, and the buyer who can close on time wins.
Refinance / maturing loan
Loan maturing into a higher-rate market with softer rents than when you bought? Even a strong industrial asset deserves a competitive process. We run the market so you refinance on the best available terms, not your current lender’s first offer.
Permanent / stabilized
Holding long-term on a functional, well-located, well-leased building? Life-company and CMBS options can lock low fixed rates on premium stabilized California industrial.
Value-add, lease-up, or specialized
Re-tenanting a vacated big block, or financing cold storage, manufacturing, or IOS? A bridge lender or a subtype specialist who underwrites the business plan, then a permanent takeout once it stabilizes.
How we place California industrial debt
We’re a debt brokerage with $600M+ in deal experience across underwriting and brokerage. We underwrite your asset the way lenders will (functionality, location, tenancy, and rollover), take it to the ones actively competing for California industrial from a network of 700+, and run it to close, typically 15–30 days. You get options and leverage, not a single take-it-or-leave-it term sheet.
See what terms your California industrial property can command.
Book a 15-minute call → or submit your dealCalifornia industrial loans: FAQ
What rate can I get on a California industrial loan?
In our closing data, recent loans here have run mostly low-to-mid 6s (roughly 6.0%–6.7%) fixed for permanent financing, priced over the 5-year Treasury at about +2.25–2.5% (May 2026). These are actual closed transactions, not an offer — your rate depends on the asset, leverage, and sponsor. Contact us for a live quote.
How does the Inland Empire slowdown affect my financing?
It changes what lenders will size. With CBRE reporting Q1 2026 Inland Empire vacancy near 9.9% and asking rents off their 2023 peak, lenders scrutinize lease rollover and re-leasing assumptions more than during the boom, which can trim proceeds on vacancy-exposed assets. Functional, well-located, well-leased buildings still finance strongly, because the long-term port-driven demand thesis is intact. The right lender is the one who underwrites your specific submarket and rent roll rather than a stale boom-era comp.
Do clear height and building specs really change my loan?
Yes. Clear height, dock-door count, truck-court depth, and trailer parking determine whether a building is functionally modern, and lenders price that directly. Distance to the ports and to last-mile density shapes who the future tenant is. Two similar-size buildings can draw different terms on functionality and location alone.
How much can I borrow?
Northern Ridge Capital places industrial debt from $5 million to $30 million, commonly up to ~65–70% LTV on stabilized assets, with functionality and submarket vacancy influencing where you land.
Can you finance specialized industrial (cold storage, manufacturing, IOS)?
Yes, but it needs lenders who specifically underwrite that subtype. A generic lender’s pricing or “no” is not representative; matching you to the right one is the job.
Is Northern Ridge Capital a lender?
No. We’re a commercial mortgage broker (CA DRE #02093377) that places your deal with the right lender from a network of 700+ and makes them compete. Commercial real estate only.
Do you only work in California?
We place debt nationwide within our licensed footprint, with deep focus in California, Texas, Florida, Georgia, and Indiana.
About
Justin Ashcraft is the principal of Northern Ridge Capital, a commercial real estate debt brokerage placing $5M–$30M in multifamily, retail, industrial, and SBA financing nationwide within its licensed footprint, with $600M+ in deal experience across underwriting and brokerage. Licensed in California, DRE #02093377.
Lenders still want functional California industrial near the ports. Make them compete for yours.
Book a 15-minute call →Northern Ridge Capital is a licensed commercial mortgage broker (CA DRE #02093377), not a lender, and arranges financing on commercial real estate only (no residential). Rates and figures reflect actual closed transactions as of the date noted and are not an indication or offer of terms. For informational purposes only; not financial, legal, or tax advice. Full disclosures.