Industrial Market Review Bill T hro ne , SI OR, CCI M, AL C F - PowerPoint PPT Presentation

Industrial Market Review Bill T hro ne , SI OR, CCI M, AL C F irst Vic e Pre side nt I NDUST RI AL PROPE RT I E S

TIPPING POINT: Port of Virginia

TIPPING POINT: Port of Virginia

TIPPING POINT: Shortage of space

TIPPING POINT: Shortage of space

TIPPING POINT: Local submarket

TIPPING POINT: Spec development? LAND VALUE MODEL Proposed building (square feet): 350,000 25% Coverage (%): Acreage required (acres): 32.14 Land Cost (per acre): $85,000.00 $2,731,864.10 Land Cost (total): Land cost (under building): $7.81 Building Cost (per square foot): $50.00 Building Cost (total): $17,500,000.00 TOTAL DEVELOPMENT COST: $20,231,864.10 TOTAL DEVELOPMENT COST PSF: $57.81 CAP RATE: 9.00% NOI: $ 1,820,867.77 REQUIRED NNN LEASE RATE (PSF/YR): $5.20 CURRENT MARKET NNN LEASE RATE (PSF/YR): $4.00 CURRENT DEVELOPMENT RENT GAP (%): 30.06%

TIPPING POINT: Local talent 515,000 SF 12 year lease term

TIPPING POINT: Building pricing

TIPPING POINT: 2016 ODU/CREED Looking forward to the 2015 Industrial report!