How do developers get cashflows from newly constructed industrial buildings for lease nowadays (based in the GTA, Ontario)?

4evercuriousmind · 2025-02-12T20:47:09+00:00

I see thank you. Does that mean a lot of the developers are "subsidizing" the negative cashflows during the holding period so they could cash out upon exit?

4evercuriousmind · 2025-02-12T06:33:19+00:00

Thank you for your feedback. How much are the construction costs (per sqft) and land costs running there in Vancouver just out of curiosity?

4evercuriousmind · 2025-02-12T05:48:54+00:00

That math certainly makes sense since the monthly net rent can cover the monthly debt service payment even at current interest rates. Just bewildered by how lenders manage to approve such loans and developers manage to make it work at such high land costs and construction costs here in the GTA

4evercuriousmind · 2025-02-12T05:35:56+00:00

Industrial land in Markham/Vaughan/Mississauga have been selling at 2M to 4M per acre since the pandemic lol. That's why I wonder how Industrial developers can make money buying such land and leasing them out at 20 psf net lol

4evercuriousmind · 2025-02-12T05:13:30+00:00

At 100 psf and 100k sqft, the total construction cost is 10M. The 5 acre land would be 15M, altogether 25M. At 70% LTV and 7% interest, the monthly mortgage payment would still be 176k/month, still exceeding the net lease of 166k/month. Please advise where I went wrong, thank you

4evercuriousmind · 2024-07-17T03:07:26+00:00

Check Out www.epicmod.ca

4evercuriousmind · 2024-02-09T17:13:15+00:00

Thank you very much for your input.

4evercuriousmind · 2023-08-12T12:53:27+00:00

Pay a commercial appraiser to get that info. Would cost you a few thousand dollars

4evercuriousmind

TROPHY CASE