Our Focus on Class B Industrial Buildings

Why Does TruCore focus on Class B Industrial Real Estate?
It’s simple: hidden gems with high potential. Class B Industrial Real Estate stands out for its value-add prospects and dependable yields, allowing us to take overlooked assets and turn them into high-performing properties that beat market returns. Check out our list of frequently asked questions to learn more about how Class B Industrial Real Estate can benefit your portfolio.

The industrial real estate market is categorized into Class A, B, and C properties. Class A represents the newest buildings with the best amenities, locations, and construction quality. Class C includes older properties that often require significant renovation. Class B sits in the middle, offering a blend of reasonable quality, features and cost-effectiveness.

Here’s how we define Class A and Class C Properties:

Class A

  • Built/Renovated: 7 years or less
  • Concrete tilt
  • Clear Height: 28 ft+
  • Truck Court: 100 ft+
  • Docks: At least 1+ per 7,500 SF

Class C

  • Built/Renovated: Over 15 years ago
  • Metal
  • Clear Height: 18-20 ft
  • Truck Court: <60 ft.

These buildings are typically older than Class A, with good maintenance and functionality, making them valuable for a variety of uses. 

While there are many definitions in the industry, at TruCore, we define a class B industrial building as a property that meets the following criteria:

  • Built or Renovated: Less than 15-20 years ago
  • Roof, structure, and paving condition is most critical 
  • Concrete, Masonry, or Metal
  • Clear Height: 20-28 ft
  • Truck Court Depth: 70 – 100 ft
  • Docks: At least 1 per 10,000 SF
  • Use: Functional across a range of uses
TruCore targets investments in the top 150 Metropolitan Statistical Areas (MSAs) across the United States, focusing on locations with strong economic indicators and growth potential. Here’s a look at some of our investment locations:

These properties house tenants from various sectors. The common thread among them is the need for functional space that supports their operational requirements without the premium cost of Class A properties.

Investing in Class B properties can involve risks such as tenant turnover, potential for increased maintenance costs compared to newer properties, and the need to closely monitor market conditions to ensure rents remain competitive.
Exit strategies can vary but often involve improving the property to increase its value and then selling it at a profit. Other strategies include holding the property to benefit from cash flow or refinancing to leverage equity growth.
Our target deal size ranges from $3 million to $15 million, though we’re open to exploring larger portfolios based on the opportunity’s merits.
Yes, we consider opportunities in both fully leased and partially or fully vacant properties, assessing each for its potential to add value.
We work closely with brokers, valuing their expertise and market knowledge. TruCore offers a competitive incentive program for brokers who introduce us to off-market deals that meet our investment criteria.

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