One of the questions I get asked a lot is, “What is my building worth?” It sounds like it should be a pretty simple answer, but most of the time it is not. Two industrial buildings can look almost the same and still have very different values. Things like location, building size, land, condition, access, tenants, and the way the property is set up can all change what someone is willing to pay for it.
The first thing I usually look at is recent sales of similar properties. Price per square foot is helpful, but I do not think you can just stop there. A smaller building might sell for more per square foot, or another property might have more yard space, better access, better power, or a better location. I try to look at why a property sold for what it did instead of just taking that number and using it on another building.
If the property has a tenant, then the lease is a big part of the value too. I want to know what the tenant is paying, how much time is left on the lease, what expenses they are responsible for, and whether the rent is in line with the market. A strong lease can make a property more attractive, while a weak lease can do the opposite. That is why two very similar buildings can still have completely different values.
Another thing owners should pay attention to is the difference between an asking price and an actual sale price. Just because a property is listed at a certain number does not mean the market agrees with it. I would rather look at what has actually sold, how long properties are sitting on the market, what else is currently available, and what buyers are responding to. That gives a much better picture of where the market really is.
At the end of the day, there is no one formula that works for every industrial property. Every building is a little different, which is why I think looking at the property itself and the market around it is more useful than relying on a quick online estimate. If you own an industrial property in Northern Nevada and want to know how it compares to the market, reach out and I would be happy to take a look.
Check public record for general information on value
Check out some of the properties my team and I have listed at this time
https://www.marcusmillichap.com/the-nicholson-group/properties
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