Future wireless communication systems are envisioned to support ultra-reliable and low-latency communication (URLLC), which will enable new applications such as compute offloading, wireless real-time control, and reliable monitoring. Distributed multiple-input multiple-output (D-MIMO) is one of the most promising technologies for delivering URLLC. This paper classifies obstruction and derives a channel model from a D-MIMO measurement campaign carried out at a carrier frequency of 3.75 GHz with a bandwidth of 35 MHz using twelve distributed fully coherent dipole antennas in an industrial environment. Channel characteristics are investigated, including statistical measures such as small-scale fading, large-scale fading, delay spread, and transition rates between line-of-sight and obstructed line-of-sight conditions for the different antenna elements, laying the foundations for an accurate channel model for D-MIMO systems in industrial environments. Furthermore, correlations of large-scale fading between antennas, spatial correlation, and tail distributions are included to enable proper evaluations of reliability and rare events. Based on the results, a channel model for D-MIMO in industrial environments is presented together with a recipe for its implementation.