Airport Lehigh Valley International Airport
Total Cargo (millions of U.S. tons) 0.10
Seaport Port of Newark
TEU Volume - 2017 (millions) 6.71
Major Highways I-78, I-81, I-80, I-76, I-476, I-83
Number of Intermodal Rail Hubs 5
Number of Class I Rail Lines 2
What is the term of a typical lease? 5-10 years
How is the rent quoted? NNN Annual
What is the tenant's option for termination or break? Termination options limited.
Does the tenant have the option to renew? What is the length of the typical option? Yes. 5-year options, but generally tracks initial term length
How is the rent determined at renewal? Fair Market Value
What is the typical rent-free period, if any? 1-3 months on a 5-year lease, outside the term
What is the typical rent escalation? 2.5%-3.0% per year
What is the average rent for a warehouse greater than 50K sq. ft.? $5.25 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.? $5.50 per sq. ft. per year
Is there a rent review during the lease? No
What are the average service charges (OPEX)? $0.40-$0.50 per sq. ft. per year
Who is responsible for the service charges? Tenant
What are the average taxes paid on the lease? $0.70-$1.20 per sq. ft. per year
Who is responsible for the property taxes? Tenant
Who is responsible for the utilities? Tenant
Who is responsible for the fit-out costs, if any? Landlord
What is the typical security deposit? 1-2 months, depending on tenant's credit.
How is car/truck parking paid? Included in rent
Any other occupancy costs? N/A
What is the typical land tenure? Leaseholds are rare except for airport-related sites. 50 years of tenure minimally
What is the terminology of the purchase agreement? Purchase and Sales Agreement
What is the average cost? Warehouse: $80-$110 per sq. ft.
Manufacturing: $45-$65 per sq. ft.
What is the agency fee and who pays? 3%-6% typically by seller if marketed opportunity. If submitting unsolicited, commissions will vary.
What is the typical LTV? 60%-65%
What is the average borrowing rate? 130 basis points over comparable Treasury. Current 5-year Treasury is 2.88% and 10-year Treasury is 3.0%.
What is the mode of payment? Cash at transfer of title.
What are the average transaction (closing) costs? 1% cost of recording deed, 1% transfer tax, 1% escrow fees, all split by seller & buyer; other fees paid by buyer.
What is the average clear ceiling height? 32' -40'
Average number of dock doors? 1 per 7,500 sq. ft.
Typical column spacing? 50' x 50'
Average parking ratio? 0.40 -0.70 / 1,000 sq. ft.
Sprinkler system? ESFR
What is the typical power supply? 3,000 amps, 3 phase