Development Yield on Cost: Total Cost, Rent and the Margin over Market
This lesson is part of the course
In this lesson
You 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.
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Lessons in this course
- Building Basics: Gross vs Lettable Area, Office Share and Site Coverage Locked
- Clear Height and Storage Capacity: Racking Levels and Pallet Positions Locked
- Docks and Yard: Dock Ratios, Trailer Parking and Benchmark Checks Locked
- Rent Metrics: per m², per Pallet Position and per m³ Locked
- Lease Income: Capped and Collared Indexation and Recoverable Costs Locked
- Development Yield on Cost: Total Cost, Rent and the Margin over Market Locked
- Hold-Period Cash Flows: Exit Value and IRR over Seven Years Locked
- Comparison and Sensitivity: Ranking Options and Testing Exit Yields Locked