Industrial investment sales.

Tenant credit

The single largest variable on a leased asset. A national credit tenant and a local operator on identical rent produce materially different valuations, because the buyer is pricing the reliability of the income.

Weighted average lease term

Remaining term determines how much of the buyer's hold period is contracted rather than speculative. Short remaining term is not necessarily bad — where in-place rents sit below market it can be the upside — but it must be underwritten deliberately.

In-place rent against market

Where a lease sits below market, the buyer prices the roll-up. Where it sits above, they price the roll-down and the re-tenanting risk. Establishing the honest answer before marketing prevents that argument arriving in diligence.

Escalations and expense structure

Fixed escalations versus index-linked, and whether the lease is truly triple-net, determine how much inflation risk transfers to the buyer.

Physical functionality

Clear height, column spacing, dock and drive-in configuration, power service, and truck court depth decide which tenants can occupy the building at all — and therefore how deep the future demand pool is.

Replacement cost and land constraint

Where new competing supply cannot easily be built, existing assets carry scarcity value. This is the central argument on Florida's Space Coast, where a shortage of development-ready industrial sites has run since 2014 against expanding aerospace demand.

• How is an industrial property valued for sale?

  By capitalising the net operating income the leases produce, adjusted for the reliability of that income. Tenant credit, weighted average remaining lease term, escalation structure, and how in-place rent compares to market drive value more than the physical building does.

  Physical functionality still sets the boundaries: clear height, column spacing, dock configuration, and power service determine which tenants could occupy the building, and therefore how deep the demand pool is at the next rollover. Replacement cost matters most where land is constrained, as on Florida's Space Coast.

• Is small-bay industrial a good asset to sell right now?

  In Florida, small-bay is currently the strongest segment in our coverage. Tampa small-bay sits at 3.2% vacancy with 6.5% rent growth, the highest in the state, against overall Tampa industrial vacancy of 7.3–7.5%.

  The structural driver is scarcity of the format. Small-bay is expensive to build relative to the rent it commands, so new supply is limited while demand from service businesses and light distribution continues. Owners of small-bay product are in a materially stronger position than apartment owners in the same metros.

• Should I sell my industrial building with a tenant in place or vacant?

  Usually with the tenant in place, since investors buy contracted income. The exception is where the building would appeal to an owner-user, who will often pay above investor pricing because they are solving an operational need rather than targeting a yield.

  That decision turns on the specific building and market. Where owner-user demand is real, running a process that reaches both investors and operators frequently produces the best outcome, and those are two different marketing efforts.

• What is a sale-leaseback and when does it make sense?

  A sale-leaseback is a transaction in which an owner-occupier sells the building and simultaneously signs a lease to continue occupying it, converting real estate equity into working capital while retaining operational control.

  It suits operators whose capital earns a better return in the business than in the building, and it can produce a higher price than a vacant sale because the buyer acquires contracted income rather than an empty asset. The lease terms you agree are the product being sold, so they warrant as much attention as the price.

This page is general information about how commercial real estate investment sales work, not legal, tax, or investment advice, and not an offer to sell or a solicitation of an offer to buy any security or service. Timelines, fee structures, and market conventions described here vary by transaction; nothing on this page is a quote or a commitment. Any engagement is governed by a written agreement.