Both - Dock Level

Definition: Both - Dock Level and Drive-In Access

In the context of commercial real estate and mortgage underwriting, the term "Both - Dock Level" (frequently referred to as "Both - Dock High and Grade Level") describes an industrial or flex property that features two distinct types of loading configurations: dock-high doors and drive-in/grade-level doors. This designation indicates that the facility is equipped to handle a wide variety of freight and vehicle types, ranging from heavy-duty semi-trailers to small delivery vans and forklifts.

Detailed Description

When a property is listed as having both loading types, it offers a hybrid infrastructure that maximizes operational flexibility. The two components are defined as follows:

• Dock-High Doors: These openings are typically elevated 48 to 52 inches above the exterior pavement. This height aligns perfectly with the bed of a standard tractor-trailer, allowing for the efficient transfer of goods using pallet jacks or forklifts without the need for ramps.
• Drive-In (Grade-Level) Doors: These doors are situated flush with the ground. They allow vehicles to be driven directly into the warehouse or shop area. These are essential for light industrial work, indoor vehicle storage, or businesses that utilize smaller delivery vehicles.

Properties with Both configurations are highly sought after in the industrial market because they do not limit the tenant's logistical capabilities. A tenant can receive bulk shipments via a 53-foot trailer at the dock-high door while simultaneously dispatching smaller local deliveries through the drive-in door.

Significance in Commercial Mortgages

From the perspective of a commercial mortgage lender or underwriter, a property with both dock-level and drive-in access is often viewed as a lower-risk asset. This classification impacts the loan process in several ways:

• Marketability and Re-Leasability: Lenders prefer properties that appeal to the widest possible range of tenants. If a primary tenant vacates, a building with both loading options is easier to re-lease because it meets the requirements of distribution, manufacturing, and service-based businesses alike.
• Valuation Stability: Appraisal reports often give higher "utility scores" to buildings with dual-access points. This can lead to a higher property valuation, which improves the Loan-to-Value (LTV) ratio for the borrower.
• Tenant Retention: Businesses that have both loading needs are more likely to remain in a space long-term, as finding a replacement facility with the same specific infrastructure can be difficult and expensive. This provides the lender with more confidence in the property's consistent debt service coverage.
• Future-Proofing: As e-commerce and "last-mile" delivery continue to evolve, the demand for facilities that can handle both large-scale freight and small-scale van loading remains high, protecting the long-term value of the collateral.