Midwest CRE Advisors Founder Shares Edge Data Center Site Evaluation Process

Logan Freeman, founder of Kansas City-based Midwest CRE Advisors, has developed a repeatable evaluation process for industrial buildings being considered for edge data center conversion. Unlike most commercial real estate brokers who focus on ceiling height and loading docks, Freeman prioritizes the electrical room, a difference that has enabled his firm to close edge data center transactions in secondary Midwest markets.

Freeman's evaluation begins before entering the building, starting with external utility infrastructure: a transformer pad, a substation, and the service entrance size. These factors determine whether a building warrants a closer look. '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, his first stop is the electrical room, where he examines switchgear, panel configuration, and existing load capacity—not just what is there, but what it would cost to upgrade.

Floor load is a critical factor often overlooked. Standard warehouse floors rated for 125 pounds per square foot fall short of the 200 to 300 pounds per square foot required for edge data centers. When structural capacity is insufficient, remediation costs can make a building unworkable. Clear height, while important, is less critical; 12 to 16 feet is sufficient for small to mid-size data centers. Column spacing is more crucial, as obstructions create layout problems. Column-free or wide-bay floor plans command a premium.

Cooling infrastructure and prior use history are the third area of focus. Freeman looks for raised floors, existing HVAC units, and any history of the building being used as a critical-environment facility. 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. Buildings with such prior use can bypass years of fit-up work and millions in capital expenditure, compressing deployment timelines by two years or more.

Beyond power and structure, Freeman checks fiber entry points and road access for equipment delivery. However, he notes that the most common deal killer 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 for a serious prospect takes about an hour, with specialists in electrical, structural, and mechanical systems. 'By the end of that hour I have a pretty clear picture of whether the adaptive reuse story is a two-million-dollar fit-up or a twenty-million-dollar gut renovation,' Freeman adds.

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 who ask the second are the ones finding the deals. For more on Midwest CRE Advisors' approach, visit their client success stories.