Industrial property decisions should be made on total operating cost, not rental alone. Yard efficiency, utilities, access, labour, security and transport can outweigh a small difference in rent.
Build the full occupancy model
- Base or gross rental
- Rates and levies
- Electricity and water
- Security charges
- Generator or solar recoveries
- Maintenance responsibilities
- Sprinkler and fire-system costs
- Yard and parking charges
- Escalation
- Fit-out and racking
Add logistics cost
Compare truck kilometres, route delays, tolls, port or airport access and the cost of inefficient loading or queuing.
Add productivity cost
Poor yard design, insufficient doors or inadequate height can increase labour and handling costs every day.
Gordon's perspective
A slightly higher rental can be the cheaper business decision if the property reduces truck time, handling cost and operational risk.
Explore next
Use The Brief and Rainmaker data to compare the total operational picture for shortlisted facilities.