In the competitive world of edge data center development, a site visit’s first ten minutes can make or break a deal. While most commercial real estate brokers check ceiling height and loading docks, Logan Freeman, founder of Kansas City-based Midwest CRE Advisors, heads straight for the electrical room. That focus has enabled his firm to close edge data center transactions in secondary Midwest markets, where many brokers are still unfamiliar with the sector.
Freeman has developed a repeatable evaluation process for industrial buildings under consideration for conversion into edge data centers. The process begins before entering the building. The first thing he looks for is external utility infrastructure: a transformer pad, a substation, and the size of the service entrance. “If I see a 2,000-amp service on a 40,000-square-foot building, I’m interested,” he explains. “If I see a 400-amp panel, I’m moving on unless there’s a clear utility upside story.”
Once inside, the electrical room is his first stop. He examines switchgear, panel configuration, and existing load capacity, focusing not just on current conditions but on upgrade costs. A building with marginal power but a nearby substation and expansion headroom presents a different investment case than one with no upstream capacity.
Floor load capacity is a deal-breaker often missed. Standard warehouse floors rated for 125 pounds per square foot fall short of the 200 to 300 pounds per square foot required for data center equipment. Remediation costs can make an otherwise promising building unworkable. Clear height of 12 to 16 feet is sufficient for small to mid-size data centers, but column spacing is more critical. Column-free or wide-bay floor plans command a premium because obstructions create layout problems.
Cooling infrastructure and prior use history are the third area of focus. Former telecom central offices and switching facilities are particularly valuable, as they were built for continuous 24-hour operation and often have battery rooms, generator connections, and redundant cooling systems. “They were designed for 24/7 uptime,” Freeman says. Such buildings can bypass years of fit-up work and millions in capital expenditure. With supply chain delays pushing lead times on critical equipment like behind-the-meter turbines to 24 to 36 months, starting with existing infrastructure can compress a deployment timeline by two years or more.
Beyond power and structure, Freeman checks fiber entry points and road access for equipment delivery. However, the issue that most often kills deals is roof condition. “I’m always looking at the roof,” he says. “Prior water intrusion on IT equipment is a conversation stopper.” A thorough walkthrough takes about an hour, with specialists in electrical, structural, and mechanical systems. By the end, Freeman has a clear picture of whether the adaptive reuse story is a $2 million fit-up or a $20 million gut renovation.
The broader principle Freeman applies is that the question to ask about an old industrial site is not what the building is, but what it is connected to. Most buyers only ask the first question; those asking the second find the deals. For closed deal examples and more on Midwest CRE Advisors’ approach, visit their client success stories.
