1. What is the Warehouse Rent Estimate?

The Warehouse Rent Estimate calculates an approximate rental cost based on comparable properties in the area, adjusted for specific features of the warehouse space.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Comparable Warehouse Rents — Rental prices of similar properties in the same area
• Feature Adjustment Factor — Multiplier accounting for differences in features (e.g., loading docks, ceiling height, location)

Explanation: The equation averages comparable rents and adjusts for unique features of the subject property.

3. Importance of Rent Estimation

Details: Accurate rent estimation helps landlords price competitively and helps tenants evaluate fair market value for warehouse spaces.

4. Using the Calculator

Tips: Enter at least three comparable rental prices in USD. The feature adjustment factor should be greater than 1 for superior features and less than 1 for inferior features compared to the comparable properties.

5. Frequently Asked Questions (FAQ)

Q1: What makes a good comparable property?
A: Look for warehouses with similar size, location, age, and features within the same market area.

Q2: How do I determine the feature adjustment factor?
A: Consider differences in loading docks, ceiling height, office space, parking, and building condition compared to comparables.

Q3: What's a typical price range for warehouse space?
A: Prices vary widely by location, but typically range from $4-$12 per square foot annually in most markets.

Q4: Should I include utilities in the rent comparison?
A: Make sure you're comparing the same type of lease (gross vs. net) when selecting comparables.

Q5: How often should rent estimates be updated?
A: In dynamic markets, comparables should be no more than 3-6 months old for accurate estimates.