From the course: Introduction to Commercial Real Estate Analysis

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Warehouse portfolio case study

Warehouse portfolio case study

- [Instructor] Hey, welcome back. In this lecture, we are going to look at an industrial portfolio example. So, instead of looking at just one warehouse, what happens if we're looking at an entire portfolio of multiple warehouse buildings in the same deal? So, in our example now, for this lecture, we're going to look at the purchase, the lease up, and the hold of a small portfolio of industrial warehouses. Now, there's going to be several different combinations of land and building unit combinations here, so we'll have one 40,000 square foot building with multiple tenants that is 50% leased, two other individual units, a 25,000 square foot building with an existing lease, and then one 15,000 square foot empty building that requires a lease up. And we also have one empty lot that is just extra dirt where we can construct a new unit that's 35,000 square feet warehouse as well. Alright, so the economics we're going to look at, we're going to have a total purchase price of 5.5 million…

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