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🏭 Industrial Weights

Adjust section and question weights. Changes affect future evaluations only.

Section Weights
Location & Logistics
18%
Physical Asset Quality
14%
Tenant & Lease Quality
18%
Financial Performance
16%
Debt & Capital Structure
10%
Value Creation
10%
Risk Assessment
8%
Legal & Compliance
6%
Total Section Weight 100%

Section weights are relative — they'll be normalized to 100% during scoring.

Submarket fundamentals (vacancy, absorption)
%
Sub-5% vacancy? Positive net absorption? Strong demand drivers?
Transportation infrastructure access
%
Highway, port, rail, airport proximity? Last-mile location?
Labor pool depth and cost
%
Sufficient warehouse/logistics workers? Competitive wages?
New supply pipeline
%
How many SF under construction? Pre-leased? Speculative?
E-commerce and logistics demand drivers
%
Near population centers? Same-day delivery pressure?
Tax and regulatory environment
%
Property taxes? Business-friendly local government? Incentives?
Proximity to population and consumption
%
Within 2 hrs of major metro? Last-mile vs. regional distribution?
Land value and scarcity
%
Infill location? Land constrained? Barriers to new development?
Market rent growth trajectory
%
Rent growth outpacing inflation? Sustainable?

Question weights are relative within the section.

Building specs (clear height, columns, docks)
%
32'+ clear height for modern logistics? Adequate dock doors? Column spacing?
Building age and condition
%
Year built? Recent renovations? Remaining useful life?
Versatility for different uses/tenants
%
Can it flex between distribution, manufacturing, e-commerce?
Truck court and trailer parking
%
180' truck court? Adequate trailer drops? Queueing space?
Power infrastructure
%
Adequate amps? 3-phase power? Can handle automation/robotics?
Site layout and expansion potential
%
Excess land? Room to add docks or build out?
Fire suppression and life safety
%
ESFR sprinklers? Up to code? Insurance-friendly?
Automobile parking adequacy
%
Enough employee parking? Shift change consideration?
Environmental condition
%
Phase I clean? Prior industrial uses? Contamination risk?

Question weights are relative within the section.

Tenant creditworthiness
%
Investment grade? Publicly traded? Financial stability?
Weighted average lease term (WALT)
%
5+ years remaining? Near-term rollover risk?
Lease structure (NNN, escalations)
%
True NNN? Annual bumps of 2-3%? Or flat rents?
Tenant diversification
%
Single tenant = concentration risk. Multiple = complexity. Balance?
Mark-to-market rent opportunity
%
In-place rents vs. market? 10-20%+ below market?
Location criticality to tenant
%
Is this a mission-critical node? Hard to relocate? Invested in build-out?
Tenant's industry outlook
%
Growing industry? E-commerce? 3PL? Or declining sector?
Renewal probability
%
High switching costs? Tenant invested in improvements? History of renewals?
Lease guarantees and security
%
Personal guarantees? Parent company guarantee? Security deposit?

Question weights are relative within the section.

Going-in cap rate attractiveness
%
Relative to submarket? Risk-adjusted? Justified spread over Treasuries?
Projected IRR
%
Core: 8-10%. Value-add: 15%+. Where does this fall?
Underwriting assumptions realism
%
Rent growth, vacancy, TI/LC assumptions conservative?
Cash flow stability and predictability
%
Long leases = predictable. Short leases = more risk but more upside.
Price per SF vs. replacement cost
%
Buying below replacement? Margin of safety?
TI and leasing cost projections
%
Realistic tenant improvement and LC budgets?
Exit cap rate assumption
%
Reasonable exit cap? What if it widens 50bps?
NOI growth trajectory
%
Embedded escalators? Mark-to-market at rollover? Expense control?

Question weights are relative within the section.

Financing terms attractiveness
%
Rate, LTV, IO period — competitive for the asset type?
Leverage and DSCR comfort
%
60-70% LTV typical. DSCR > 1.25x at Day 1?
Debt structure matching business plan
%
Term matches hold period? Flexibility for value-add execution?
Refinance risk assessment
%
What if rates are higher at maturity? Can you refi?

Question weights are relative within the section.

Rent mark-to-market opportunity
%
How much below market at lease rollover?
Operational improvements
%
Better management? Expense reduction? Technology upgrades?
Expansion or subdivision potential
%
Can you add square footage? Split for multiple tenants?
Operator/sponsor value-add capability
%
Does the team have the skills to execute the plan?
Land value and highest-and-best-use potential
%
Could the land be worth more as another use long-term?
Solar / sustainability value-add
%
Rooftop solar potential? Green certifications? ESG premium?

Question weights are relative within the section.

Tenant concentration and default risk
%
What happens if the biggest tenant goes dark?
Recession resilience
%
Essential goods distribution? Or discretionary?
Environmental or contamination risk
%
Prior uses? Phase I findings? Remediation costs?
Exit market liquidity
%
Institutional demand for this asset type/size? Cap rate compression potential?
Technology obsolescence risk
%
Will automation require building retrofits? Adequate power for future needs?
Functional obsolescence
%
Low clear height? Narrow truck court? Will it become outdated?
Natural disaster exposure
%
Flood zone? Earthquake? Tornado alley? Insurance costs?

Question weights are relative within the section.

Title and survey cleanliness
%
Clean title? Easements? Access rights?
Zoning and permitted use compliance
%
Properly zoned? Any non-conforming uses? Variance risk?
Tax structure and depreciation benefits
%
Cost segregation? Bonus depreciation? 1031 potential?
Entity structure and investor protections
%
Standard LP/GP? Investor rights? Distribution waterfall clarity?

Question weights are relative within the section.

Overall excitement about this deal
%
On a visceral level, does this fire you up? Or feel like settling?
Trust in the people across the table
%
Would you want to be in a foxhole with these people? Eye contact, handshake feel.
Would this be your only investment this year?
%
If you could only make ONE bet, would it be this one?
Portfolio fit and strategic alignment
%
Does this complement our existing investments? Fill a gap?
LP/partner explainability
%
Could you confidently explain this to investors at the next meeting?
Too-good-to-be-true meter
%
10 = no suspicion at all. 1 = something feels off. Trust your spider sense.
Timing and urgency — is the window right?
%
Right time in the cycle? Market conditions favorable? Or are we chasing?
Differentiation vs. other opportunities
%
How does this compare to other deals you've seen recently?
Sleep-at-night factor
%
Can you sleep well after wiring the money? Or will it keep you up?
Regret minimization — would you regret passing?
%
In 5 years, would you kick yourself for not doing this deal?
Information quality — do you know enough?
%
Do you feel well-informed? Or are there big unknowns?

Question weights are relative within the section.