Pros cons of rear load vs front load. (Academic curiosity)
Hi all, newish to this space. Wanted to understand pros and cons if any between rear load/front load industrial buildings. I’ve hear anecdotally that rear load is more valuable and the usually means an industrial property would typically have more parking as well.
[{"id": "h2to0ij", "text": "Rear load expands your tenant possibilities to customer facing businesses.  Typically demands higher rent if there is visibility.", "replies": [], "depth": 1}, {"id": "h2tsy3s", "text": "Most front load does not have storefront, and has a lower office finish. Since less capital cost goes into the lower office finish, it commands lower rents and thus is valued lower (holding land cost equal). In today\u2019s market, not a huge variance in cap rate between the two, so all else equal returns should be similar for similar vintage product with similar credit tenancy and land basis. Rear load will have deeper tenant pool and thus will be more successful in slightly more infill locations and modern front loading buildings are usually bigger and serve in a more bulk distribution capacity but both can be bulk distribution. Rear load can also be built as a shell and appeal to a wider variety of tenants because you can serve both light industrial and bulk tenants but front load will almost always just be bulk.", "replies": [], "depth": 1}, {"id": "h2v8zu0", "text": "My apologies, what does front load and rear load mean?", "replies": [{"id": "h2voa5y", "text": "Where the loading docks for trucks are located", "replies": [], "depth": 2}], "depth": 1}, {"id": "h3x7y6k", "text": "I prefer rear load for all the reasons mentioned here. I\u2019m actually in the process of designing a multi-tenant industrial building. We\u2019re going rear load. Should be in development q2 22.", "replies": [], "depth": 1}]