CRE Terms 14: Industrial Drill-Down

Welcome to another edition of our commercial real estate (CRE) terms and definitions blog series. For this one, we’re delving into some of the sub-categories and terminology associated with industrial buildings and real estate.


Industrial 101

So first off, let’s get the basics out of the way: an industrial building is for the use functions including production, storage and distribution of goods. The three most common types – according to the NAIOP Terms and Definitions booklet – is manufacturing, warehousing or distribution and “flex”. Industrial buildings include some percentage of office space.

With “flex facilities”, an industrial building is designed specifically to be used in multiple ways. This allows the space to appeal to a variety of clients. We often see this kind of option in an industrial park space. With strategic and creative design choices – high ceilings, wide doors, and so on – a flex space can be used just as easily as a showroom or service center.

Biotech Space

In contrast to a flex space, a biotech industrial building is “highly specialized laboratory or research and development space”. Normally, a biotech tenant will have a  list of requirements. A client needing a facility to manufacture chemical or medical goods will have to meet stringent regulatory standards. As such, these spaces are typically developed to design.

Industrial Considerations and Specs

Industrial CRE buildings will keep brokers on their toes, whether you deal with owners or occupiers. To have a working knowledge of things like truss heights, racking systems, loading docks, cross decks and column spacing are essential for an industrial broker. They are key assisting a new build client and when considering selling or leasing a space.


Click HERE to see some of the industrial spaces we have on the market. 

Having an agent who is knowledgeable about all the intricoes of commercial real estate is key to a successful transaction. Click HERE to view all our agents.