# Small-bay industrial and flex Canonical: https://commercialdebtadvisory.com/property-types/small-bay-industrial/ Status: Published Publisher: Jaken Finance Group Version: 3c13609af704cbf7ed1b3fbe7b20b4efb797322a321e377b07c5f8a4c6d5f167 Test tenant clusters, collections and turnover cash at the bay level. ## The financing decision Can diversified leases and collections support debt after tenant turnover and fit-out costs? Prepare the rent roll as an operating map rather than a tenant count. Group suites by controlling business, payment source and common exposure, then connect each bay to its build-out and replacement cost. This makes a multi-tenant property easier to explain when many small leases conceal shared customers, related owners or concentrated renewal dates. ## What changes the analysis ### Describe what the space actually is Plymouth Industrial REIT’s June 2025 supplemental separates property types and includes flex within its small-bay reporting. Those are that issuer’s definitions. Record your actual office percentage, doors, clearances and utility arrangements instead of applying a market label to every suite. Sources: plymouth ### Compare contracts with cash Plymouth’s reported annualized base rent excludes rent abatements. Use that disclosure as a reminder to label metrics precisely: a contracted run rate is not collected cash. Your tenant ledger should show free rent, arrears, recoveries and concessions independently. Sources: plymouth ### Tie replacement demand to physical utility The OCC’s industrial discussion identifies building characteristics and adaptability as underwriting considerations. Prepare a suite-specific replacement plan: which users could occupy the bay, what work would be needed and who pays before rent starts? Sources: occ-cre ## Questions to prepare for a lender ### How diversified are the actual payment sources? Map related entities, common guarantors and connected businesses, alongside each tenant’s share of collected rent and outstanding receivables. ### What happens when adjacent bays become vacant together? Prepare a dated rollover schedule with alternative downtime, subdivision or combination costs, commissions and unrecovered common expenses. ### Are flex improvements reusable? Provide floor plans and a condition review identifying office build-out, HVAC, electrical service and loading features that the next user can use. ## Preparation checklist These are preparation suggestions; the lender determines the transaction-specific requirements. - [ ] Suite-level rent and collections schedule: Reconcile lease rent and recoveries to receipts, concessions and arrears. - [ ] Tenant affiliation and business-use map: Identify economic concentration that a simple tenant count misses. - [ ] Lease abstracts with renewal and expansion rights: Track events that could move multiple suites at once or restrict reconfiguration. - [ ] Bay specifications and utility responsibility matrix: Describe the actual space and separate landlord costs from tenant obligations. - [ ] Turnover bids and cash calendar: Show when repairs and leasing costs become payable, including months without reimbursement. ## Hypothetical decision ### Hypothetical: diversified names, shared exposure A small-bay property has several tenant entities whose sales depend on the same regional construction contractor. Group their collections and lease maturities into one stress case. Compare the resulting vacancy cash need with the sponsor’s available liquidity and separately cost any suite reconfiguration. Tenant diversity is an evidence question; the number of lease signatures alone does not answer it. ## Using the existing model The existing Industrial underwriting model provides the lease-cash-flow starting point. Its property-level inputs do not automatically reveal tenant affiliations, flex build-out differences or correlated rollover. Additional schedule: Add a bay ledger and tenant-group stress schedule, then reconcile their totals to the workbook. Existing package: https://commercialdebtadvisory.com/models/industrial/ ## Sources and applicability - plymouth: [Plymouth Industrial REIT — Q2 2025 supplemental](https://www.sec.gov/Archives/edgar/data/1515816/000095017025104078/plym-ex99_2.htm) — Leased Square Feet and Annualized Base Rent by Type; Lease Expiration Schedule; June 30, 2025. Checked 2026-10-21. Issuer-specific metric definitions and disclosure structure, not national underwriting thresholds. - occ-cre: [OCC — Commercial Real Estate Lending, version 2.0](https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/commercial-real-estate-lending/pub-ch-commercial-real-estate.pdf) — Appendix D, Industrial, printed pages 121–122; March 2022 booklet with March 20, 2025 reputation-risk edits. Checked 2026-10-21. Supports attention to physical characteristics and adaptability; no handbook numeric assumptions are adopted. AI-assisted preparation; publisher review status is recorded separately. ## Dedicated niche underwriting package Status: published Package version: 57d5e428a0d5b18d66c34c15068d3e47ac247eb19b75c35621c7910128df074c - [Download dedicated Excel model](https://commercialdebtadvisory.com/downloads/niche-packages/small-bay-industrial-underwriting-model.xlsx) - [Download lender guide PDF](https://commercialdebtadvisory.com/downloads/niche-packages/small-bay-industrial-lender-guide.pdf) The existing model discussion above concerns the core asset workbook. Use this dedicated package's instructions and limitations for its niche calculations. - All numerical values are illustrative; no market facts or lender approval are asserted. - The twelve-month operating model omits taxes on investor returns and future refinancing costs except expressly entered items. - Author verification uses Artifact Tool recalculation, saved-XLSX reimport and separate JS arithmetic; independent application verification is recorded separately. - Legal, licensing, environmental, engineering and lender-specific recognition require actual diligence.