How do you build an industrial asset business plan you can defend?
A defensible industrial asset business plan sets out the asset's current position, the strategy (hold, regear, refurbish, re-let or sell), and the income and capital assumptions behind it, with each assumption tied to evidence: lease terms from the system of record, rents and downtime from comparables and agency research, covenant from credit reports, and costs from quotes. Scayled does not model or validate assumptions. Where the plan includes a re-letting, it gives the downtime line something concrete: the 250 to 350 businesses the unit suits, the person who signs at each, and a drafted approach per business.
- What goes into an industrial asset business plan?
- Which assumptions get challenged hardest?
- Where does the evidence for each assumption come from?
- How do you show the re-letting plan is realistic?
- How should the plan be tracked once it is approved?
- What does Scayled cost?
What goes into an industrial asset business plan?
The current position: tenancy schedule, passing rent against estimated rental value, WALE to expiry and break, condition, and any planning or environmental issues. The strategy for the hold period, such as regearing a key lease, refurbishing a unit to a higher specification, re-letting a vacancy or preparing the asset for sale.
Then the numbers: a cash flow with renewal probabilities, downtime, incentives, letting costs, capital spend and an exit assumption, usually built in ARGUS Enterprise, plus the risks and the actions that address them.
Which assumptions get challenged hardest?
The ones that move value most and rest on judgement: estimated rental value, renewal probability, downtime after a lease event, incentives, capital spend, and the exit yield. An investment committee, a lender or a valuer will ask where each figure came from.
Downtime is a common weak point. A blanket assumption applied to every lease says nothing about whether this particular unit has businesses ready to take it.
Where does the evidence for each assumption come from?
Lease terms from Yardi or MRI. Rents, incentives and vacancy from CoStar, MSCI benchmarks and agency research from firms such as CBRE, JLL, Cushman & Wakefield, Savills and Colliers. Covenant from Creditsafe, Dun & Bradstreet, Experian or Moody's. Capital costs from contractor quotes and a building survey.
Renewal probability is the hardest to evidence. The strongest support is a record of conversations with the tenant, its stated plans, and how its operation uses the site, noted against the tenancy.
How do you show the re-letting plan is realistic?
Name the route to the next tenant: the agent and the portals for businesses already searching, and a direct approach to businesses whose operation suits the unit but who are not searching yet. A plan that names who will be approached is easier to defend than one that only names a number of months.
Scayled produces that direct-approach list. The plan can then point to a named set of 250 to 350 businesses the unit suits, how many show current signs of needing space, and the person who decides at each, rather than a downtime figure taken on trust.
How should the plan be tracked once it is approved?
Review actual results against the plan each quarter: lettings, rents achieved, months vacant against the downtime assumed, capital spend against budget. Update the assumptions when the evidence changes, and record why.
Variances in downtime are usually the most expensive ones. Starting the re-letting effort before a unit is empty is the most direct way to keep them small.
What does Scayled cost?
Scayled does not build or test business plans. It is a fixed-price action for the re-letting lines in them, and the cost can go straight into the plan as a leasing expense.
That price is The Campaign: US$749 per vacancy for the Full 250 to 350 businesses, or from US$449 for the strongest 100 to 150, paid once with no subscription and no commission. A committee can see the output in advance on the sample campaign, and the method is set out in what goes into a leasing campaign for commercial property.
Lease The Vacancy In-House, Before You Appoint An Agent.
The Campaign finds the 250 to 350 businesses the building suits, names the person who decides at each and writes every email, ready in about five days. One payment of US$749 per property, no commission and no subscription. A focused 100 to 150 from US$449.