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east central ND | With the prices of a new building, and the yearly property tax, maintenance, utilities, and maybe insurance on the building, can we make a math formula?
Just for argument sake, let’s assume a 5 to 10 year old building, with tall sidewalls, nice gravel floor, and a big door that’s is good with modern farm equipment (commercial, rv, and industrial storage is a different game).
So what is a realistic return on a building? A short few years ago low interest rates would mean a much lower rent number than today? And would you figure a building rent at what it cost to build 5 or 10 years ago vs today? And what % of the build cost (25 or 50 year lifespan?)?
So lets talk a math formula:
All the yearly expenses (utilities, insurance, property taxes, etc) + something towards maintenance + a percentage of the buildings cost + an amount to cover or account for interest = yearly rent???
Edited by D6Joe 4/11/2024 08:29
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Renting Machine Shed
