Key Adjustment Factors for Industrial Properties

When using the Sales Comparison Approach, what are the physical characteristics that we often adjust for with industrial properties?

• Location: Proximity to highways, ports, and major distribution hubs, and compatibility of surrounding area for truck traffic, storage, and operations.

  
  

• Building Size: The price per square foot typically varies inversely with the building size due to economies of scale.

  
  

• Condition/Quality: Age, construction (concrete tilt-up, masonry, metal), and maintenance level.  Newer, well-maintained properties typically command a premium.

  
  

• Land-to-Building Ratio: Properties with a higher ratio offer more yard space, better truck maneuverability, outdoor storage, or expansion potential.

  
  

• Office Ratio: A small portion of the property is typically dedicated to office space, too much or too little may affect the usability and demand.

  
  

• Clear Height: Higher ceilings offer more efficient storage and operations.

  
  

• Loading Capacity: Grade-level doors and dock-high loading.  Properties with less loading capacity will be more limited in some uses and functionality.

These are factors to consider when selecting comparable sales and our adjustments will allow us to quantify how the different physical characteristics impact value.