As the commercial real estate landscape continues to evolve, one asset class stands out for its resilience, growth, and need for innovation: industrial.
Following an in-depth analysis of tenant demand, leasing trends, and capital markets over the past 36 months, it has become clear that industrial landlords represent the most compelling opportunity for tenant improvement (TI) financing in today’s market.
Unprecedented Demand for Industrial Space
Driven by long-term structural shifts in the global economy (e-commerce, reshoring, and supply chain optimization) the U.S. industrial sector has experienced explosive growth:
- Warehouse demand has exceeded 700 million sq. ft. nationally.
- Manufacturing space absorption is up 25% year over year, fueled by onshoring of production facilities.
- High-growth markets like Dallas-Fort Worth, Houston, Phoenix, and Atlanta continue to dominate, with Dallas alone absorbing more than 15 million sq. ft. of industrial space annually.
This surge in leasing activity has led to an acute need for build-outs. Industrial tenants now require highly specialized spaces, including reinforced floors, dock loading infrastructure, robotics, climate control, and smart logistics systems. These are not generic spec spaces. They’re capital-intensive, tenant-specific, and often required upfront to secure the lease.
Landlords Face a Capital Dilemma
Recent leasing data shows that approximately 75% of industrial tenants now negotiate for landlords to fund improvements as part of the lease package. But with rising interest rates, tightened credit markets, and pressure to preserve dry powder for acquisitions, many landlords are hesitant—or unable—to commit capital toward tenant build-outs.
This is where Dolfin’s model proves highly valuable.
A Strategic Fit for Dolfin’s TI Financing
Our product—100% unsecured financing for tenant improvements—is uniquely positioned to support industrial landlords and tenants. We provide the capital needed to complete build-outs without requiring liens, collateral, or equity contributions. This enables landlords to stay competitive in a tight leasing market while preserving balance sheet flexibility.
In today’s environment, the ability to say “yes” to a $2M–$10M tenant improvement ask can be the difference between landing a long-term anchor tenant or losing them to another property.
Looking Ahead
Given the scale of ongoing industrial development and the demands of high-credit tenants across logistics, manufacturing, and distribution, we believe this sector will continue to lead CRE growth over the next 18–24 months.
Dolfin will be prioritizing outreach to industrial landlords and their brokers, especially in high-growth metros across the Sun Belt and Southeast. If you’re structuring a deal that requires tenant improvement capital and you’re looking for a partner that can move quickly: We’re ready to help.
Use our money, not yours.
