Industrial Real Estate Tool · Free
Industrial Deal Analyzer
Underwrite a warehouse, flex or bulk building the way industrial actually trades — $/SF/yr rents, NNN recoveries, and the lease rollover that decides the deal. Get going-in cap, DSCR, levered IRR, equity multiple and an exit-cap sensitivity grid in seconds.
Start from a scenario
Property & income
Enter 0 if vacant at closing.
What the space would lease for if it rolled now.
0 = rolls at closing.
Recovered from tenants on NNN leases.
0% = true NNN. 100% = full gross. The landlord always carries 100% when the space is dark.
Roof, paving, HVAC. Below NOI.
General reserve on leased rent.
Lease rollover
% of total rent over the new term.
Financing & exit
Applied to forward-year NOI.
Levered IRR
11.7%
on $5,824,000 of equity, over 7 years · going-in cap 6.17% · $140.00/SF
Going-in cap rate
6.17%
in-place rent, fully leased
Year-1 cash NOI
$864,270
after any rollover downtime
Year-1 DSCR
1.27×
debt yield 10.3%
Year-1 cash-on-cash
2.9%
avg 1.8%
Unlevered IRR
9.1%
before debt
Equity multiple
2.09×
profit $6,325,482
Exit value (yr 7)
$18,898,830
$188.99/SF at 6.25% cap
Mark-to-market
+11%
market rent vs. in-place
Worth a second look
- Cash flow goes negative in at least one year (usually the rollover year) — equity has to fund the gap.
- Debt costs more than the property yields (negative leverage) — borrowing dilutes cash-on-cash until rents grow.
Annual cash flow
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | |
|---|---|---|---|---|---|---|---|
| Rent collected | $891,000 | $917,730 | $945,262 | $973,620 | $1,002,828 | $582,385 | $1,182,241 |
| Landlord-paid opex | -$0 | -$0 | -$0 | -$0 | -$0 | -$150,706 | -$0 |
| Management fee | -$26,730 | -$27,532 | -$28,358 | -$29,209 | -$30,085 | -$17,472 | -$35,467 |
| NOI | $864,270 | $890,198 | $916,904 | $944,411 | $972,743 | $414,208 | $1,146,774 |
| Capital reserves | -$15,000 | -$15,000 | -$15,000 | -$15,000 | -$15,000 | -$15,000 | -$15,000 |
| TI + leasing commissions | -$0 | -$0 | -$0 | -$0 | -$0 | -$535,307 | -$0 |
| Debt service | -$680,609 | -$680,609 | -$680,609 | -$680,609 | -$680,609 | -$680,609 | -$680,609 |
| Cash flow after debt | $168,661 | $194,589 | $221,295 | $248,802 | $277,135 | -$816,708 | $451,165 |
| DSCR | 1.27× | 1.31× | 1.35× | 1.39× | 1.43× | 0.61× | 1.68× |
Sale price (fwd NOI ÷ cap)
$18,898,830
Selling costs
−$283,482
Loan payoff
−$7,210,805
Net sale proceeds
$11,404,542
Exit is priced on year 8 NOI with rollover downtime and TI/leasing costs removed — a buyer underwrites a stabilized building, not your carry.
Levered IRR sensitivity
Exit cap rate (down) against market rent (across). Same model, shocked inputs.
| Exit cap ↓ / Market rent → | -10% | Base | +10% |
|---|---|---|---|
| 5.75% (-50 bps) | 10.9% | 13.8% | 16.2% |
| 6.25% (base) | 8.8% | 11.7% | 14.3% |
| 6.75% (+50 bps) | 6.7% | 9.7% | 12.4% |
| 7.25% (+100 bps) | 4.6% | 7.9% | 10.6% |
Equity is $5,824,000: $14,000,000 price + $140,000 closing + $84,000 loan fee − $8,400,000 loan. Every lease that expires inside the hold period is assumed to roll to market with the downtime, TI and commission entered above. Nothing here models taxes.
Want a second set of eyes on this deal?
Email yourself this analysis. Ryan will pressure-test the rent, cap rate and rollover assumptions against current Florida industrial comps — and tell you if the deal only works on paper.
Submitting does not create a brokerage relationship. MaxLife Realty LLC · Ryan Solberg, FL Broker License #BK3354351.
How the industrial analysis works
Industrial income is rent per square foot, per year, usually triple-net. The tenant reimburses taxes, insurance and CAM, so the landlord’s NOI is close to base rent less management. What moves the return is what happens when the lease ends: months of downtime while the landlord carries the building, then tenant improvements and a leasing commission to sign the next tenant, then a new rent that may be well above — or below — the old one.
This analyzer runs that month by month. It steps rent through the in-place lease, drops into a downtime period at expiry, re-leases at market, and charges TI and commissions when the new lease starts. It then layers on your loan, sizes DSCR and debt yield, and prices the exit on forward NOI. Pair it with the DSCR calculator to size the loan, the cost segregation calculator for the tax side, and the general deal analyzer for multifamily or retail.
Industrial deal analysis FAQs
What cap rate should I underwrite for a Florida industrial building?
Market cap rates run roughly 5.75%–6.75% for modern bulk warehouse, 5.50%–6.50% for last-mile infill, 6.50%–7.50% for flex/R&D, and 6.75%–8.00% for industrial outdoor storage. By county the range stretches from about 5.25% in Miami-Dade to 7.50% in tertiary markets. Use the going-in cap to see what you're paying and the exit cap to test what you can sell for — and always run the +50 and +100 bps rows of the sensitivity grid.
How does the analyzer handle lease rollover?
The in-place lease steps up annually until it expires. The space then sits dark for the downtime you enter, with the landlord paying full taxes, insurance and CAM, and re-leases at market rent (grown at your market-growth rate) with tenant improvements and leasing commissions paid at commencement. If the new lease expires inside your hold period, the same event repeats.
Why is the exit priced on forward NOI?
A buyer pays for the income they'll receive, not the income you received. The exit value here is year-after-sale NOI divided by your exit cap rate, with any rollover downtime and TI/commission cost removed from that forward year — a buyer underwrites a stabilized building. That's also why selling right after a rollover looks better than selling right before one.
What is a good levered IRR for an industrial deal?
Stabilized, long-lease industrial typically underwrites in the high single digits to low double digits levered. Value-add and lease-up deals carry rollover and leasing risk, so investors generally want mid-teens or better to compensate. Treat any single number skeptically: look at the sensitivity grid to see how much of the return depends on the exit cap rate and market rent.
What does 'landlord-paid share' of expenses mean?
On a true NNN lease the tenant reimburses taxes, insurance and CAM, so the landlord's share is 0%. On a modified-gross or gross lease the landlord pays some or all of them out of the rent. Enter the share the landlord bears; the analyzer always charges the landlord 100% while the space is vacant.
Disclaimer: This analyzer is for educational and informational purposes only. It is not an appraisal, investment advice, or a loan offer, and it does not model income taxes. Results depend entirely on the assumptions you enter. Verify rents, expenses, lease terms and financing with the offering memorandum, the leases and a licensed lender before you buy.
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