3 ms·

No, in commercial real estate when you say $30/sqft it's already annualized. That's 30 / 12 = $2.5/sqft/mo. Also you're looking at listings for 10k or less, at

No, in commercial real estate when you say $30/sqft it's already annualized. That's 30 / 12 = $2.5/sqft/mo. Also you're looking at listings for 10k or less, at 500k space it's a very very very different game.

ghshephard 10y ago
Wouldn't you get a break on larger warehouses versus smaller ones? Also, as a comparable, I'm checking out this: https://www.houston.org/newgen/17_Commercial_Real_Estate/17C%20W005%20Industrial%20Space%20Cost%20Comparison.pdf https://www.houston.org/newgen/17_Commercial_Real_Estate/17C... San Francisco (highest I could find) - is $34.32/sq foot/annually. So, applying your rule, one would pay $34/sq/foot/month. So - a typical 1500 square foot commercial office would be $51,000/month? Seems high even for San Francisco. If we instead divided by 12, $2.86/sf/month, then $4300/month for 1500 square feet seems within the realm of reason. How certain are you that these rates are already converted into monthly values? I found one monthly rate for Kentucky, 2,500 - 8,432 SF, $1,016 - 5,578 (Monthly). That would be $0.40/month - $0.66/month, or, multiplied by 12, $4.80-$8/year. Right within the expected range.
- ghshephard 10y ago
  Here's good comparable with monthly and annual rates (it's big, modern): http://www.kcrea.com/listing/29969851/9101-Minor-Ln-Louisville-KY-40219 http://www.kcrea.com/listing/29969851/9101-Minor-Ln-Louisvil... 324,730 sq feet. $3.95 PSF/Annual or $106,890/month. $106,890 * 12 = $1,282,680/year / 324730 sq feet = $3.95/year/sq foot. And you get 35 Docks on 21 acres to boot.
  - cm2012 10y ago
    I appreciate you taking the time to do this research. A great HN conttibution.
  - deleted 10y ago
    [deleted]
  - ykler 10y ago
    Great work. Do note that this is an NNN lease, though, which means the tenant pays property tax and operating expenses. For a new warehouse like this one, this site says these fees average 58% of the base rent: http://fgpcl.com/what-to-expect-with-triple-net http://fgpcl.com/what-to-expect-with-triple-net

ghshephard 10y ago

Wouldn't you get a break on larger warehouses versus smaller ones? Also, as a comparable, I'm checking out this: https://www.houston.org/newgen/17_Commercial_Real_Estate/17C%20W005%20Industrial%20Space%20Cost%20Comparison.pdf https://www.houston.org/newgen/17_Commercial_Real_Estate/17C... San Francisco (highest I could find) - is $34.32/sq foot/annually. So, applying your rule, one would pay $34/sq/foot/month. So - a typical 1500 square foot commercial office would be $51,000/month? Seems high even for San Francisco. If we instead divided by 12, $2.86/sf/month, then $4300/month for 1500 square feet seems within the realm of reason. How certain are you that these rates are already converted into monthly values? I found one monthly rate for Kentucky, 2,500 - 8,432 SF, $1,016 - 5,578 (Monthly). That would be $0.40/month - $0.66/month, or, multiplied by 12, $4.80-$8/year. Right within the expected range.

ghshephard 10y ago
Here's good comparable with monthly and annual rates (it's big, modern): http://www.kcrea.com/listing/29969851/9101-Minor-Ln-Louisville-KY-40219 http://www.kcrea.com/listing/29969851/9101-Minor-Ln-Louisvil... 324,730 sq feet. $3.95 PSF/Annual or $106,890/month. $106,890 * 12 = $1,282,680/year / 324730 sq feet = $3.95/year/sq foot. And you get 35 Docks on 21 acres to boot.
- cm2012 10y ago
  I appreciate you taking the time to do this research. A great HN conttibution.
- deleted 10y ago
  [deleted]
- ykler 10y ago
  Great work. Do note that this is an NNN lease, though, which means the tenant pays property tax and operating expenses. For a new warehouse like this one, this site says these fees average 58% of the base rent: http://fgpcl.com/what-to-expect-with-triple-net http://fgpcl.com/what-to-expect-with-triple-net