Week of January 13, 2021
There are more buyers looking for outside storage yards to purchase. Institutional capital sees leased land as an excellent investment. They are offering higher prices than normal because of investment grade returns. Offering prices are $70 per foot +. At $.45 Net rents monthly (annualized at $5.40), investors are underwriting to 7.5% returns. This is generous compared to building returns and often there are credit tenants in place. Some are calling “covered land”, a new asset class.
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