Tap to get financing
Industrial Property Loan
Financing Options
Permanent Senior DebtLife CompanyCMBSBankConstructionBridgeMezzanineSmall BalanceSBAFind the Right Lenders
Resources
Property CharacteristicsInvestor GlossaryIndustrial Property InsuranceIndustrial Finance BlogAsset Types
For Brokers
Get financing →
Newly Published
Mar 7 at Industrial Property Loan
Environmental Due Diligence in Industrial Real Estate
Jan 11 at Industrial Property Loan
Your Guide to Smart Industrial Real Estate Investing
Aug 26 at Industrial Property Loan
Rate-and-Term Refinance in Industrial Real Estate
Explore the Janover Network
May 8 at HUD Loans
The 2025 Developer's Guide to HUD Lender Matching
Apr 22 at Janover Inc. Investor Relations
Janover Inc. Announces Corporate Name Change to DeFi Development Corporation
Apr 16 at Janover Inc. Investor Relations
Janover Inc. to Host X Spaces Conversation on NAV Premiums
Was This Article Helpful?
Industrial Property Characteristics Glossary
3 min read
by Jeff Hamann

Why Are Retention Ponds Important for Industrial Real Estate?

Proper maintenance of retention ponds plays a key role in reducing erosion damage and pollution from your industrial real estate.

In this article:
  1. Retention Ponds
  2. Retention Ponds Have Several Uses
  3. Retention Pond Maintenance
  4. Related Questions
  5. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

Retention Ponds

Retention ponds play a critical but understated role in an industrial property's operations. One common trait of most industrial real estate assets is the presence of pavement — and lots of it. Expansive truck courts and large parking lots are a necessity for many distribution centers, warehouses, and even manufacturing facilities, but there are some environmental considerations to take into account when developing a new property.

When large stretches of concrete, asphalt, and other nonporous materials are present in an area, it can lead to issues with water runoff. This can create challenges for your property and the surrounding area. To handle this excess water, most industrial assets make use of retention ponds.

Retention ponds typically range in size from 5% to 10% of a parcel’s impermeable surface. They are often required as part of a building’s design by local planning commissions. In some cases — say, an industrial park — developers may use fewer large retention ponds to handle runoff for a wide range of properties. This may be more economical than using individual, smaller ponds near each property.

Retention Ponds Have Several Uses

When water has nowhere to go, it can create floods as the rainwater falling onto your land quickly collects on your site. Or, potentially worse, it empties out on streets and sidewalks or into smaller creeks or streams. The primary function of a retention pond is to limit how much water is saturating the ground in a given area. These ponds gradually introduce the collected water into the water table over the course of 72 or more hours.

It isn’t just for flooding, however. If large amounts of water are flowing in a specific path away from your property, this will erode the soil on your — or your neighbors’ — properties. This could eventually lead to the collapse of parking areas, nearby roads, or even the foundation of your building. While there are several other ways to reduce erosion, channeling rainfall into a retention pond is particularly useful if it contains pollutants.

Retention ponds play a noteworthy role in reducing pollution. As rainwater flows into the pond, it takes with it a variety of waste. Some of this waste is obvious, like litter. Other pollutants, including chemicals such as petroleum products or fertilizers, could otherwise be introduced into the water table. Retention ponds can act as a filter to prevent this pollution from flowing into groundwater.

Retention Pond Maintenance

Even if you’re not developing a property that requires a retaining pond, if a basin is present on your property it may be your responsibility to maintain it. Maintenance efforts can be significant, from fixing erosion damage on the pond’s banks to keeping areas where water is flowing free of debris. It’s common for retention ponds to have weeds, which can clog water outflows. Unchecked, this could lead to flooding.

Most of the maintenance is fairly straightforward, however: Keep grass mowed, remove any physical garbage present in the basin, and if there are any mechanical elements to the retention pond — like, for example, pumps — ensure they’re in good working order.

The most important part of retention pond maintenance is frequency. Don’t defer basic maintenance tasks, and address problems as they arise.

Related Questions

What are the benefits of having a retention pond on industrial property?

Retention ponds are beneficial for industrial properties because they can help reduce flooding and erosion, as well as provide a source of water for irrigation and other uses. Additionally, they can help improve water quality by filtering out pollutants and sediment. They can also provide a habitat for wildlife, which can help attract customers and increase property value. Source

What are the potential risks of not having a retention pond on industrial property?

Not having a retention pond on industrial property can lead to a number of potential risks. Without a retention pond, stormwater runoff can cause flooding, erosion, and sedimentation. This can lead to damage to the property, as well as to nearby properties. Additionally, without a retention pond, pollutants from the property can be washed away and end up in nearby bodies of water, leading to water contamination.

What are the most common types of retention ponds used in industrial real estate?

Retention ponds are commonly used in industrial real estate to manage stormwater runoff and reduce flooding. The most common types of retention ponds used in industrial real estate are wet ponds, dry ponds, and detention ponds.

Wet ponds are designed to hold water all year round and are typically used to treat stormwater runoff. They are usually lined with vegetation and aquatic plants to help filter out pollutants. Dry ponds are designed to hold water only during periods of heavy rainfall and are usually lined with vegetation and rocks to help absorb and filter out pollutants. Detention ponds are designed to hold water for a short period of time and are usually lined with vegetation and rocks to help absorb and filter out pollutants.

For more information, please see this article from the EPA.

How does a retention pond affect the value of industrial real estate?

Retention ponds can have a positive or negative effect on the value of industrial real estate, depending on the location and purpose of the pond. In some cases, a retention pond can be used to reduce flooding and improve drainage, which can increase the value of the property. On the other hand, if the pond is located too close to the property, it can create a nuisance and reduce the value of the property.

For example, if the pond is located too close to the building, it can create a noise nuisance and reduce the value of the property. Additionally, if the pond is not properly maintained, it can become a breeding ground for mosquitoes and other pests, which can also reduce the value of the property.

It is important to consider the location and purpose of the retention pond when assessing the value of industrial real estate. If the pond is located too close to the property, it can create a nuisance and reduce the value of the property. On the other hand, if the pond is properly maintained and located in an appropriate area, it can improve the value of the property.

What are the environmental regulations for retention ponds on industrial property?

The environmental regulations for retention ponds on industrial property vary depending on the location. Generally, retention ponds must meet local, state, and federal regulations. For example, the EPA requires that all stormwater discharges from construction activities must be managed in accordance with the National Pollutant Discharge Elimination System (NPDES) permit program. Additionally, the HUD requires that all properties financed with a HUD 221(d)(4) loan must undergo an environmental assessment. This includes a Phase I Environmental Assessment to identify any potential environmental concerns, and a Phase II Environmental Assessment if necessary.

What are the best practices for maintaining a retention pond on industrial property?

The best practices for maintaining a retention pond on industrial property depend on the size and purpose of the pond. Generally, it is important to keep the pond free of debris, maintain the water level, and ensure that the pond is not over-fertilized. Additionally, it is important to regularly inspect the pond for any signs of erosion or other damage.

The EPA recommends that industrial facilities use green infrastructure to manage stormwater runoff. This includes using retention ponds to capture and store stormwater runoff, which can help reduce flooding and improve water quality. Additionally, the EPA recommends that industrial facilities use best management practices to maintain their retention ponds, such as regularly inspecting the pond for signs of erosion or other damage, keeping the pond free of debris, and maintaining the water level.

The USDA also recommends that industrial facilities use best management practices to maintain their retention ponds, such as regularly inspecting the pond for signs of erosion or other damage, keeping the pond free of debris, and maintaining the water level. Additionally, the USDA recommends that industrial facilities use appropriate fertilizers and other chemicals to ensure that the pond is not over-fertilized.

In this article:
  1. Retention Ponds
  2. Retention Ponds Have Several Uses
  3. Retention Pond Maintenance
  4. Related Questions
  5. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
Industrial Property Loan

Industrial Property Loan is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

[email protected]

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.