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Industrial & Flex Space FSBO Guide

Warehouses, flex buildings, light manufacturing, and storage facilities sold by owner.

5.5%–8.0%

Typical Cap Rate

2,000–50,000 sq ft

Typical Size

4%–6%

Broker Commission Saved

Overview

Industrial and flex properties have been among the strongest performers in commercial real estate. Warehouses, distribution facilities, and flex space (part office, part warehouse) are in high demand from e-commerce, last-mile delivery, and small manufacturers. FSBO sales are very common in industrial — buyers tend to be investors who respond well to straightforward income data.

How to Sell Industrial & Flex Space By Owner

Value Your Property

Research comparable sales and apply market cap rates. Industrial & Flex Space typically trades at 5.5%–8.0%.

Prepare an Offering Memorandum

Create a professional OM with financials, photos, and key property data.

List on LoopNet & Crexi

Publish on the two largest commercial marketplaces to reach qualified buyers.

Negotiate & Sign an LOI

Exchange a Letter of Intent with the buyer to agree on price and major terms.

Due Diligence & Close

Allow 30–60 days for the buyer to complete due diligence, then close with an attorney or title company.

Key Due Diligence for Industrial & Flex Space

Buyers will typically request the following during the 30–60 day due diligence period:

1Clear height, dock doors, drive-in doors, and power (amps/volts)
2Environmental history, Phase I ESA, and underground storage tanks
3Zoning classification (M-1, M-2, I-1, I-2) and permitted uses
4Outdoor storage and parking availability
5Roof age, condition, and warranty status
6Hazardous material history and contamination disclosures

Full due diligence checklist for commercial FSBO →

Who Buys Industrial & Flex Space?

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E-commerce and last-mile distribution operators

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Small manufacturers and fabricators

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Private equity industrial investors

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Owner-users purchasing for their own business

Tax Strategy

Consider a 1031 Exchange

Selling industrial & flex space with capital gains? A 1031 exchange lets you defer both federal and state taxes by reinvesting in like-kind commercial property. You must engage a Qualified Intermediary before closing and identify replacement property within 45 days.

Learn About 1031 Exchanges Find a Qualified Intermediary ↗

Affiliate disclosure (FTC): The links below are sponsored partnerships. We may receive compensation if you click and make a purchase, at no additional cost to you. We only feature services we believe are useful to commercial FSBO buyers and sellers.

Recommended Tools & Services

LoopNet

Top Listing Site

The largest commercial real estate marketplace. List your property for sale or find available storefronts, office, and industrial space.

Browse LoopNet ↗

Crexi

Fast Growing

Crexi is a modern commercial marketplace with powerful analytics. Great for sellers wanting data-driven pricing and broad buyer reach.

Try Crexi ↗

1031 Exchange Corp

Tax Strategy

Defer capital gains taxes by reinvesting proceeds into a like-kind commercial property. Speak with a qualified intermediary before closing.

Find a QI ↗

Rocket Lawyer

Legal Docs

Commercial purchase agreements, letters of intent, lease agreements, and NDA templates — reviewed by attorneys at a fraction of the cost.

Get Legal Docs ↗

CCIM Institute

Education

The most recognized commercial real estate investment credential. CCIM-designated professionals lead the industry in commercial transactions.

CCIM Institute ↗

Frequently Asked Questions

Can I sell industrial & flex space by owner without a broker?▼

Yes. Property owners have the legal right to sell industrial & flex space without a licensed broker in all 50 states. Commercial transactions between sophisticated parties are specifically designed for direct negotiation. Saving a 4%–6% broker commission on a commercial property sale is a significant financial benefit.

What is a typical cap rate for industrial & flex space?▼

Industrial & Flex Space typically trades at cap rates of 5.5%–8.0%. Cap rates vary significantly by market, location, lease terms, and property condition. Lower cap rates indicate lower perceived risk and higher demand markets. Always verify current market cap rates with recent comparable sales in your submarket.

What due diligence should a buyer perform on industrial & flex space?▼

Standard due diligence for industrial & flex space includes: Clear height, dock doors, drive-in doors, and power (amps/volts); Environmental history, Phase I ESA, and underground storage tanks; Zoning classification (M-1, M-2, I-1, I-2) and permitted uses; and more. A typical commercial due diligence period runs 30–60 days.

Who are the typical buyers of industrial & flex space?▼

Common buyers of industrial & flex space include: E-commerce and last-mile distribution operators, Small manufacturers and fabricators, Private equity industrial investors, Owner-users purchasing for their own business. Marketing directly to these buyer types through LoopNet and Crexi maximizes exposure.

Should I do a 1031 exchange when selling industrial & flex space?▼

If you have capital gains on the sale of industrial & flex space, a 1031 exchange lets you defer federal (and often state) capital gains taxes by reinvesting proceeds into like-kind commercial property. You must identify replacement property within 45 days and close within 180 days of your sale. Engage a Qualified Intermediary before closing — you cannot touch the proceeds.

Other Property Types

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Retail & Storefronts

5.5%–8.5%

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Office Buildings

6.0%–9.0%

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Multifamily (2–20 Units)

5.0%–8.0%

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Mixed-Use Properties

5.0%–7.5%

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Commercial Land

N/A (land)

Disclaimer: Cap rate ranges and market data are general estimates for informational purposes only. Actual values vary by location, property condition, and market conditions. Always consult a licensed commercial appraiser, broker, and attorney before making real estate decisions. See our full disclaimer.