
Sell your warehouse & distribution facility
We buy warehouses and industrial buildings nationwide, occupied or vacant, including functionally obsolete product on well-located land.
Warehouse & Distribution Facility at a glance
- Typical deal size
- $2M – $30M+
- Lease structure
- NNN
- Typical term
- 5–10 years
- Escalations
- 3–4% annually
Overview
What warehouses & distribution facilities are really worth
Our read
Warehouse is the most liquid asset class in commercial real estate, which is exactly why sellers get complacent about it.
The liquidity is real, but it is conditional. Above a functional threshold — call it 28 to 32 feet of clear height, adequate dock loading, a truck court a tractor-trailer can actually use, and power the tenant needs — a warehouse is a genuinely generic box. If a tenant leaves, another one arrives. That fungibility is what compresses the cap rate.
Below that threshold, the building is not really competing for the same tenants, no matter what the broker's flyer says. A 20-foot clear building with four dock doors serves a local user at a local rent, and it trades like it.
The most common mistake we see: an owner benchmarks their building against headline industrial cap rates they read in a market report, without recognizing that those figures describe modern product. The gap between what they expect and what the market offers is usually a clear-height problem, a loading problem, or a power problem — and it is worth understanding which before you go to market.
Valuation
How we underwrite it
The method
A warehouse producing $600,000 of NOI, at the 5.5%–7.0% national range, values to roughly $8.6M–$10.9M.
Where you land in that range is mostly a function of two things, and neither is the building's condition.
The first is functional quality — clear height, loading, power, truck court. These determine the size of the tenant pool if the building goes dark, and the buyer is pricing that liquidity into the cap rate whether they articulate it or not.
The second is the relationship between in-place rent and market rent. This is where sellers most often lose money. If your tenant has six years remaining at 30% below market, you are selling six years of below-market income. The buyer's model does not care what the space should rent for; it cares what it does rent for, discounted, until the lease rolls.
If both of those are working against you, there is a third path worth taking seriously: the land. In supply-constrained industrial submarkets, well-located dirt under an obsolete building is frequently worth more than the building. We underwrite that scenario directly.
What moves the number
- 01Clear height. Under 24 feet materially narrows the tenant pool; 32 feet and above is modern standard
- 02Loading — dock-high door count and ratio, plus trailer parking and truck court depth
- 03Column spacing and floor slab condition, which drive racking efficiency
- 04Power capacity, increasingly the binding constraint for advanced manufacturing and cold users
- 05Location relative to the port, rail, and highway network. In industrial, this is most of the value
- 06Remaining lease term and whether in-place rent is at, above, or below market
Capital markets today
- 10-yr Treasury
- 5.24%
- 4.12% a year ago
- SOFR
- 3.87%
- 4.2% a year ago
- 30-yr mortgage
- 7.28%
- 6.3% a year ago
- CRE loan delinquency
- 1.53%
- 1.57% a year ago
- CRE prices, YoY
- 6.58%
- -2.7% a year ago
Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01
Diligence
What a buyer actually looks at in a warehouse & distribution facility
- Check 01
Clear height and column grid
The single biggest determinant of the tenant pool. A 22-foot clear building competes with a fraction of the tenants a 32-foot building does, and no amount of cosmetic work changes that.
- Check 02
Roof age and condition
On a large-footprint building, the roof is the largest single capex item and it is frequently the negotiation. A 20-year-old TPO roof on 150,000 square feet is a seven-figure conversation.
- Check 03
Floor slab thickness and condition
Racking loads and forklift traffic. Cracking, spalling, or insufficient thickness limits how a tenant can use the building and shows up directly in rent.
- Check 04
Power capacity and service
Increasingly the binding constraint. Advanced manufacturing, cold storage, and automation-heavy 3PL users need power that most older industrial stock does not have, and upgrading service can take a utility 18 months.
- Check 05
Truck court depth and trailer parking
A building with a 100-foot court and no trailer parking cannot serve a distribution user regardless of how good the interior is. This is a site constraint you cannot renovate away.
- Check 06
Environmental — prior industrial use
Former manufacturing, plating, or chemical use leaves a legacy. A Phase I will flag it and a Phase II will price it.
Backfill risk
What happens if the tenant leaves
The tenant-goes-dark scenario
Warehouse is the most re-tenantable asset class in commercial real estate, and that is the entire reason it trades tighter than almost anything else. If a tenant goes dark, the space is generic — another 3PL, another distributor, another owner-user can move in with minimal reconfiguration. Downtime is measured in months, not years.
But this is only true above a functional threshold, and sellers consistently overestimate where that threshold sits. A 32-foot clear building with adequate loading and power is genuinely liquid. A 20-foot clear building with four dock doors and a shallow truck court is not a warehouse in the eyes of the modern tenant pool — it is a shed, and it will re-tenant slowly, at a low rent, to a local user. The cap rate spread between those two buildings is far wider than the rent spread, because the buyer is pricing liquidity, not just income.
Why this matters to you
Every buyer prices the tenant-goes-dark scenario, whether or not they say so out loud. It is the largest hidden input into the cap rate you get offered.
Understanding it before you go to market is the difference between negotiating and being negotiated with.
Who sells to us
Situations we see most often
- Owner-user who has outgrown the building and wants to monetize while leasing back short-term
- Investor with a below-market in-place lease who would rather sell than wait out the term
- Functionally obsolete building — low clear height, poor loading — on land worth more than the improvements
- Partnership dissolution or estate where the asset needs to be liquidated on a timeline
- Owner facing a large capex event: roof, slab, or a full dock reconfiguration
Buy box
What we buy
- 01$2M – $30M, with capacity for larger portfolios
- 02We buy vacant. Occupancy is not a requirement
- 03Functionally obsolete buildings on good industrial land are actively interesting to us
- 04Nationwide, with concentration in Sun Belt logistics corridors
Process
How selling to Dizposition works
Day 0
01Send us the property
Address, asset type, and the lease if there is one. That is enough for us to start.
- 02
We underwrite it
Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.
10 minutes
03You get a firm offer
In 10 minutes, with the math shown. You will know exactly how we got there.
As fast as 30 days
04Close on your timeline
As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.
FAQ
Selling a warehouse & distribution facility
Will you buy a vacant warehouse?
Yes. Vacancy is a pricing question, not a disqualifier. We underwrite the re-tenanting timeline and the rent we think the building actually commands, and we make an offer against that. Conventional 1031 buyers generally cannot do this because they need in-place income.
My building has low clear height. Is it worth anything?
Yes, but be realistic about what it is. A sub-24-foot clear building serves a local tenant pool, not a regional distribution pool, and it prices accordingly. If the land is well-located industrial dirt, the site may be worth more than the building — and we underwrite it that way.
Can I stay in the building after I sell?
Yes. Sale-leaseback is one of the most common structures we do with owner-users. You free up the capital in the building and keep operating, and you get to negotiate the lease terms as part of the sale.
How does a below-market lease affect my price?
Directly, and more than most sellers expect. A buyer values in-place income. If your tenant has six years left at 30% below market, the buyer is buying six years of below-market income — and no amount of arguing about what the space *should* rent for changes their model.
How long does it take to sell a commercial property to Dizposition?
You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.
Can I sell my property as-is?
Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.
Can I sell with a tenant in place?
Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.
What if my lease is short-term or about to expire?
Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.
Do I need a broker to sell to you?
No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.
What documents do I need to get an offer?
The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.
How do you determine your offer?
We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.
What are typical seller closing costs?
Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.
Will I owe capital gains tax when I sell?
Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.
Can I do a 1031 exchange?
Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.
Can I sell if I am behind on payments or facing foreclosure?
Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.
Can I sell a property I inherited or that is in probate?
Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.
What if there is environmental contamination?
Send it anyway. Environmental history is one of the most common reasons a conventional sale falls apart, and it is one of the reasons owners call us. We price the remediation and the residual liability into the offer rather than walking away at the Phase II.
Is there any cost or obligation to get an offer?
None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.
Markets
Top markets we buy warehouses & distribution facilities in
Where the inventory is
21,521 U.S. establishments · Warehousing and storage
- 01Sell a warehouse & distribution facility in California2,801
- 02Sell a warehouse & distribution facility in Texas2,003
- 03Sell a warehouse & distribution facility in Florida1,080
- 04Sell a warehouse & distribution facility in Georgia1,037
- 05Sell a warehouse & distribution facility in Illinois976
- 06Sell a warehouse & distribution facility in New Jersey968
- 07Sell a warehouse & distribution facility in Ohio950
- 08Sell a warehouse & distribution facility in Pennsylvania908
- 09Sell a warehouse & distribution facility in New York707
- 10Sell a warehouse & distribution facility in Tennessee605
Sources: U.S. Census Bureau, County Business Patterns, NAICS 493, 2023
Browse by state
50 state markets
- Arizona
- Texas
- Florida
- Alabama
- Alaska
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
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- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
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- New Hampshire
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- Ohio
- Oklahoma
- Oregon
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- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Other property types
- Gas Stations & Convenience Stores
- Car Washes
- Storage Facilities
- Industrial Outdoor Storage Facilities
- Manufacturing & Logistics Facilities
- Office Buildings
- Medical Offices
- Shopping Centers
- Hotels & Motels
- Marinas
- Multifamily Properties
- Assisted Living Facilities
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- Parking Garages & Lots
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- Churches
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- Commercial Land
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- Auto Collision & Repair Shops
- Auto Parts Stores
- Oil Change & Lube Centers
- Truck Stops
- Grocery Stores
- Drive-Thru & Casual Dining Buildings
- Coffee Shops
- Liquor Stores
- Pharmacies
- Dispensaries
- Urgent Care Centers
- Veterinary Clinics
- Dialysis Centers
- Dollar Stores
- Cell Phone Stores
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- Private & Charter Schools
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- Data Centers & Battery Farms
- Post Offices
- Government Buildings
- Auto Dealerships
- EV Charging Stations
- Hospitals & Surgery Centers
- Gyms & Fitness Centers
10-minute offer
Ready to sell your warehouse & distribution facility?
Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.


