SLIDE 1
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
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 - - 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:
SLIDE 2
SLIDE 3
TIPPING POINT: Port of Virginia
SLIDE 4
TIPPING POINT: Shortage of space
SLIDE 5
TIPPING POINT: Shortage of space
SLIDE 6
TIPPING POINT: Local submarket
SLIDE 7
TIPPING POINT: Spec development?
LAND VALUE MODEL
Proposed building (square feet): 350,000
Coverage (%):
25% Acreage required (acres): 32.14 Land Cost (per acre): $85,000.00
Land Cost (total):
$2,731,864.10
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%
SLIDE 8
TIPPING POINT: Local talent 515,000 SF 12 year lease term
SLIDE 9
TIPPING POINT: Building pricing
SLIDE 10