IOS - Market Rent
For anyone familiar with the space, its my understanding that rent is quoted on a $/Acre as opposed to $/SF. What is market $/Acre generally across the board? (I know it varies immensely) It is a simple foot--> acre conversion? is there more nuance? does the size of the building affect $/Acre? how do you determine $/Acre generically speaking? There doesn't seem to be any market rent info on CoStar or anything like that. Where do you get market rent??????????????????Any insight here greatly appreciated.
Completely market dependent- anywhere from $5K/acre/month up to +$30K/acre/month.
Sometimes quoted on a per stall basis - if one acre can hold 30 trucks at $400 per stall that is $12K per acre per month.
Building on site is charged on a $PSF basis, with the excess land around the building being charged on a per acre basis.
Are there any resources or data to back up what Rent/Acre is in some markets? Are typical CW/JLL Brokers well versed in IOS or is it an operational efficiency of these IOS owners to negotiate rents? completely not in the space and want to learn more
You can look for listings in the region and see what they’re going for / talk to some industrial brokers
Too many question marks. Pls fix.
Very whack sector
Tell me you don't understand IOS without telling me you don't understand it....
The simple answer is... it depends. Different markets have varying ways of quoting rents, $/Ac/Mo, $/SF/Mo, $/SF/Yr, $/Bldg SF/Yr, or some blend of two depending on how functional the building is / how much space there is for outdoor storage. Regardless of how rents are quoted, tenants tend to simply look at it from a monthly rent perspective. Comps are held close to the chest so it's best to talk to local brokers who focus on IOS specifically / a large part of their business is IOS. You typically wont find rent comps on CoStar because most brokers wont share it. Because CoStar doesn't yet have IOS as a separate asset type, the best way to find it is to use the property search or lease comp functions and filter for industrial and use the FAR and building SF filters.
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