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Strip Center Pad Site Value Calculator

Pad sites on existing centers add value at low marginal cost.

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Pad site net value

$2,728,846

Gross value at cap

$4,653,846

Development cost

$1,925,000

How the math works

Rent = SF × PSF. Gross value = rent / cap. Dev cost = SF × PSF. Net = gross − dev.

5.5k × $55 = $302k rent / 6.5% = $4.65M gross − $1.925M dev = $2.72M pad site net value.

How to Use

  1. Enter pad site SF.
  2. Enter expected rent PSF.
  3. Enter development cost PSF.
  4. Enter cap rate %.
  5. Read pad site value.

Frequently Asked Questions

Pad site characteristics?

Typically 4000-8000 SF. Quick-serve restaurants (Starbucks, Chipotle) or small retail. Prime locations near ingress/egress. $40-80/SF rent PSF in strong markets. Constructed via build-to-suit or spec.

Value creation?

Existing center has land, parking, entrance, utilities. Marginal cost to add pad: $200-500/SF construction vs $400-800 for greenfield site. Rent captured without new customer acquisition. 25-40% better returns than greenfield.

Approval process?

Requires zoning approval, anchor tenant consent (co-tenancy rights), adjacent tenant review. 6-18 month process. Budget $40-120k soft costs. Don't underestimate — 30-50% of pad projects stall on anchor tenant objections.

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