Cost Analysis

Comparative Warehouse Construction & Amortization Costs

Kingman, AZ

Phoenix, AZ

Las Vegas, NV

Riverside/San Bernardino, CA

St. George, UT

Number of Acres

30

30

30

30

30

Building Square Feet

325,000

325,000

325,000

325,000

325,000

 

 

 

 

 

 

 

 

Cost per acre

$107,593

$229,997

$217,800

$234,353

$110,207

 

Total land cost

$3,227,796

$6,899,904

$6,534,000

$7,030,584

$3,306,204

 

 

 

 

 

 

 

 

Construction Cost Index

86.8

88.4

104

109.6

88.1

 

Total Construction Cost (1)

$26,009,620

$26,489,060

$31,163,600

$32,841,640

$26,399,165

 

 

 

 

 

 

 

Machinery & Equipment

$9,250,000

$9,250,000

$9,250,000

$9,250,000

$9,250,000

Total Project Investment

$38,487,416

$42,638,964

$46,947,600

$49,122,224

$38,955,369

 

 

 

 

 

 

 

Project Amortization

 

 

 

 

 

 

Cost of Funds (interest)

5.0%

5.0%

5.0%

5.0%

5.0%

Payment Factor (2)

0.0710

0.0710

0.0710

0.0710

0.0710

Total Annual Amortization Cost

$2,730,777

$3,025,339

$3,331,048

$3,485,343

$2,763,979

 

 

 

 

 

 

 

Source: 2018 RS Means Building Construction Costs and Square Foot Costs;Loopnet, July 2018.

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

(1) Assumes a median cost per square foot for warehouse construction (pre-engineered metal) of $92.20, adjusted based on the local construction cost index in each location.

(2) Assumes 25-year level amortization payments at an annual interest rate of5.0%.

 

 

Kingman

Industrial Land & Building Costs

 

 

Cost per acre

$36,000 - $150,000

 

Lease rate ($/sf/month)

$0.35 - $0.65

 

Construction cost ($/sf)

$50.0 - $109.28