Industrial & Logistics Property: Clear Height and Storage Capacity, Dock Ratios, Rent per Pallet Position, Development Yield on Cost & Exit Value

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Turn a fictional warehouse's gross areas into lettable area, measure the office share and the site coverage ratio and check the office share against a fictional range with IF and AND.
• Convert clear height into whole racking levels with INT, floor area into pallet floor positions and both into total pallet capacity, then compare a lower, larger building with a taller, smaller one.
• Calculate dock doors per 1,000 m² and trailer spaces per dock for four buildings, count the buildings that meet two fictional benchmarks with SUMPRODUCT and flag the others with a formula rule.
• Express two buildings' rents per m², per pallet position and per m³ and see why the building that is dearer per m² can be cheaper for a tenant who stores pallets.
• Apply a fictional index with a floor and a cap to a 7-year lease using MIN and MAX, roll the rent forward year by year, split the property costs into recoverable and non-recoverable parts and total the net income.
• Add up a fictional warehouse development's land, build, fees, contingency and finance into a total cost, divide the rent by it to get the yield on cost, and measure the margin over a market yield in basis points and as profit on cost.
• Value a fictional warehouse at exit from the next year's income and an exit yield, deduct selling costs, complete the 7-year cash flow with capex and the sale, and measure the return with IRR.
• Compare three fictional investment options by initial yield and IRR rank with RANK.EQ, build a two-way sensitivity of exit value to income and exit yield, and chart the IRRs for the committee.