AI Skill Report Card
Analyzing Industrial Real Estate Opportunities
YAML--- name: analyzing-industrial-real-estate-opportunities description: Analyzes commercial real estate opportunities for flex industrial development in Hudson Valley, Catskills, and Capital Region NY using comps and market data. Use when evaluating industrial development projects, lease rates, or investment opportunities. --- # Analyzing Industrial Real Estate Opportunities
Quick Start15 / 15
Market Analysis Template:
Location: [Specific town/county]
Parcel Size: [acres/sq ft]
Zoning: [current zoning]
Comparable Sales (last 12 months):
- Property A: $X/sq ft, [details]
- Property B: $X/sq ft, [details]
- Property C: $X/sq ft, [details]
Lease Comps:
- Building A: $X/sq ft NNN, [specs]
- Building B: $X/sq ft NNN, [specs]
Construction Cost Estimate:
- Site prep: $X/sq ft
- Building shell: $X/sq ft
- Utilities/infrastructure: $X
- Total: $X/sq ft
Pro Forma:
- Development cost: $X
- Stabilized NOI: $X (at X% occupancy)
- Cap rate: X%
- ROI: X%
Recommendation▾
Add more concrete input/output examples showing actual calculations and decision trees
Workflow15 / 15
Phase 1: Market Research
- Pull CREXI data for target submarket (3-mile radius)
- Identify 5-10 comparable sales within 18 months
- Research active listings and days on market
- Analyze lease comps by building size/type
Phase 2: Site Analysis
- Verify zoning allows flex industrial use
- Check utility availability (3-phase power, gas, fiber)
- Assess truck access and parking ratios
- Review environmental concerns/Phase I needs
Phase 3: Financial Modeling
- Calculate hard costs ($80-120/sq ft typical for basic flex)
- Factor soft costs (20-25% of hard costs)
- Model lease-up timeline (6-18 months)
- Stress test at 10% vacancy
Phase 4: Financing Strategy
- Identify construction lenders (local banks preferred)
- Structure permanent financing (SBA 504 if owner-occupied)
- Calculate required equity (25-30% typical)
Recommendation▾
Include specific data sources and tools beyond just CREXI for market research
Examples17 / 20
Example 1: Kingston Flex Development Input: 5-acre site, M-1 zoning, $200K land cost Output:
- Comparable sales: $45-65/sq ft
- New construction: $110/sq ft all-in
- Market rent: $8-12/sq ft NNN
- Pro forma IRR: 18% at $10/sq ft
Example 2: Albany Warehouse Conversion Input: 50,000 sq ft existing warehouse, $1.2M asking Output:
- Renovation cost: $35/sq ft for flex conversion
- Market comps: $6-9/sq ft for similar product
- Total investment: $3.95M
- Stabilized cap rate: 7.2%
Recommendation▾
Provide template for sensitivity analysis showing how key variables affect returns
Best Practices
- Focus on 10,000-50,000 sq ft buildings - Sweet spot for Hudson Valley market
- Target 24-28 foot clear height minimum - Attracts widest tenant base
- Plan for 15-20% office component - Modern flex tenants expect this
- Emphasize truck access and loading - Critical for industrial users
- Consider SBA 504 financing - Best rates for owner-occupants (40%+ building)
- Build relationships with local banks - They understand the market nuances
- Track major employers - Global Foundries, Amazon, distribution centers drive demand
Common Pitfalls
- Don't ignore utility capacity - Many rural sites lack adequate power/gas
- Don't underestimate site prep costs - Rocky soil conditions common in region
- Avoid areas without fiber internet - Deal killer for many modern tenants
- Don't overlook PILOT programs - Significant tax savings available in many municipalities
- Don't build spec without pre-leasing - Market absorption can be slow
- Avoid buildings under 10,000 sq ft - Economics don't work with current construction costs
- Don't forget about prevailing wage requirements - Applies to many public incentive programs
Progress:
- Complete market analysis
- Verify site suitability
- Model development economics
- Secure financing commitments
- Execute acquisition/development