Not all industrial buildings are created equal. I’ve looked at a ton of them across NC and SC, and the spread between what a great industrial building is worth and what a mediocre one is worth is wider than people think.
So what actually makes one worth more than another? Let me break it down.
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Clear Height Measurement: What’s your actual clear height? Measure post-to-beam, not roof peak. -
Loading Type: Do you have dock doors, grade-level ramps, or no formal loading structure? -
Bay Dimensions: What are your typical bay sizes? Are they flexible for different tenant types? -
Functional Obsolescence: Are there structural limits (columns, roof trusses) that block certain tenant types?
Clear height is king
Anything over 20 feet clear and you’re in a different league. Modern logistics tenants want height for racking. Even contractors want it for lifts and equipment. A 24-foot clear building will rent for 15-25% more per foot than a 14-foot clear building in the same location. On a 20,000 SF building that difference adds up fast.
Industrial Spec Checklist
Buyers evaluate industrial buildings in this priority order:
- Clear height: 20+ feet is premium; 18-20 is functional; 16-18 is limited; <16 is obsolete
- Loading: Dock-high is highest demand; grade-level ramp is second; no formal loading cuts demand by 60%
- Bay dimensions: Can the space fit different equipment? Do columns block users?
- Electrical capacity: Is there 200/400-amp service or is it limited to basic 100-amp?
- Parking ratio: Is there dedicated parking for the tenant’s workforce?
Under 12 feet? That’s a problem. You lose half your potential tenant pool immediately. I still buy them but the discount is real.
Loading matters
Drive-in doors are standard for small industrial in Charlotte and the surrounding area. But dock-high doors open you up to distribution tenants who need to load trucks. A building with both dock-high and grade-level access has the widest tenant pool.
No loading doors at all? That’s basically an office building with a high ceiling. Not the end of the world but it limits who’ll lease it.
Power and utilities
Three-phase power is standard for industrial. If your building only has single-phase, that’s a significant limitation. Upgrading can cost $30K-60K depending on what the utility company requires. I’ve done it and it’s never cheap.
Related: Castle Hayne and the North Wilmington Industrial Corridor
Heavy power users like manufacturers and welding shops need 400+ amps. If your building has it, that’s a selling point. If not, it narrows the tenant pool.
Location and access
Highway proximity drives value more than anything else in industrial. A building near I-85 in Greenville is worth significantly more than the same building on a county road 20 miles from the interstate. Tenants need truck access and their employees need to get to work.
Truck turning radius matters too. If a 53-foot trailer can’t get in and out of your property, you’ve eliminated every distribution and logistics tenant.
The bottom line
The buildings that trade at top dollar have height, loading, power, and location. Miss on one and you’ll see a discount. Miss on two or more and you’re in a different price bracket entirely. If you’re thinking about selling, understand which of these your building has and which it doesn’t. That’ll set realistic expectations.
Seller takeaway
Industrial property value comes down to measurable specs, not guesses. If you own industrial in the Carolinas and want to know what those specs mean for your property’s value, call Roth Capital at 704-600-3839.
Want to know where your building falls? Call me. 704-600-3839.
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