Industrial Warehouse Calculator

Industrial has been the strongest CRE asset class 2018–2023; cap rates compressed.

Building sq ft

Rent $/sf

Occupancy %

Owner expense ratio %

Cap rate %

Purchase price

$27,075,000

NOI

$1,624,500

Per sq ft value

$135

How the math works

Rent = sq ft × $/sf × occupancy. NOI = rent × (1 − owner expense). Price = NOI / cap.

200k × $9 × 95% = $1.71M × 95% = $1.62M NOI / 6.0% = $27.05M. $135.27/sf.

How to Use

Enter building sq ft.
Enter rent $/sf.
Enter occupancy %.
Enter owner expense ratio %.
Enter cap rate %.
Read purchase price.

Frequently Asked Questions

Industrial warehouse benchmarks?

Rate: $4–18 NNN per sq ft per year (varies by market). Inland Empire CA: $14–22. Atlanta, Dallas, Phoenix: $7–14. Indianapolis, Memphis: $5–9. Class A new: clear height 36'+, ESFR sprinklers, deep loading bays, generous trailer parking. Class B: 24–32' clear, less efficient layout. Cap rate range: 4.5–6.5% Class A, 6.5–8.5% Class B/C. Last-mile (urban small bay): 4–5% cap, premium pricing. NNN structure typical: tenant pays taxes, insurance, CAM separately.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.