Industrial Real Estate Financing Options in Philadelphia
Updated: Oct 6
Buying an industrial building in Philadelphia, Bucks County or Montgomery County starts with two questions: will your business occupy it, or will you lease it to tenants? That distinction helps shape the financing options to discuss with lenders.
Compare the full cost of acquiring and operating the property, including improvements, closing costs and reserves. A loan quote is only useful when its assumptions match your business plan and the building.
Conventional bank financing
Banks and credit unions evaluate the borrower, property and proposed use. Down payment, interest rate, amortization, loan maturity and guarantees vary. Request written terms and ask whether a balloon payment or rate reset occurs before the loan is fully repaid.
SBA 504 financing for eligible owner-users
The SBA 504 program supports major fixed assets, including eligible commercial buildings and equipment. It involves a Certified Development Company and a senior lender. It is not a program for speculative rental-property investment or working capital. Confirm eligibility, occupancy requirements and your equity contribution with the lender and CDC. See the SBA 504 program overview.
SBA 7(a) financing
Eligible 7(a) uses can include real estate, equipment, working capital and business ownership changes. Apply through a participating lender, which determines the appropriate structure and required documents. Rates, maturity, borrower contribution and approval depend on the transaction. See the SBA 7(a) program overview.
Bridge loans
Short-term financing may be considered when a property needs improvements or stabilization before a longer-term loan is available. Compare fees, interest, extension terms and the planned repayment or refinancing path. Refinancing later is not guaranteed.
Seller financing
A willing seller may finance part of a transaction. The parties must agree on payment terms, security, priority, default provisions and any balloon payment. Have the structure reviewed by your lender and legal advisers; seller financing does not eliminate due diligence.
Prepare before applying
Gather business financial statements, tax returns and ownership information requested by the lender.
For leased investment property, organize leases, rent rolls and operating records.
Prepare a purchase budget that includes repairs, improvements, closing costs and reserves.
Identify intended use, loading needs, clear height, utilities and any planned alterations.
Ask which appraisal, environmental and property-condition reviews the lender requires.
Compare total costs, guarantees, prepayment provisions and closing conditions across written proposals.
Questions Philadelphia-area buyers should ask
Does the lender finance this property type and intended use? How much cash must remain after closing? What happens if the appraisal is lower than the purchase price? Does the closing schedule allow time for inspections and financing approval?
For an industrial or flex building in Northeast Philadelphia or the suburbs, align the property search with your operating requirements before committing to a financing structure.
Discuss an industrial property purchase
Contact John Bianchimano at RE/MAX Commercial / RE/MAX 2000 at 215-778-8610 or johnb@bricksbroker.com to discuss your location, space requirements and purchase timeline. Loan eligibility and terms must be confirmed directly with the lender.
Related property planning guides
Compare SBA 504 and 7(a) financing and review what to check when choosing flex space.
For help assessing a property, explore our commercial real estate services or request a confidential property evaluation.
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