Airport Newark Liberty International Airport
Total Cargo (millions of U.S. tons) 0.88
Seaport Ports of NY & NJ
TEU Volume - 2017 (millions) 6.94
Major Highways I-76, I-78, I-80, I-95, I-195, I-278, I-280, I-287, I-295, I-495, I-676, I-695, I-895
Number of Intermodal Rail Hubs 7
Number of Class I Rail Lines 2
What is the term of a typical lease? 5-7 years
How is the rent quoted? NNN annual
What is the tenant's option for termination or break? Landlords are extremely hesitant to give tenants termination clauses, if included it comes with substantial penalties greater than amortized rent costs.
Does the tenant have the option to renew? What is the length of the typical option? Typically, the tenant has the right to renew, with an average length of 5 years.
How is the rent determined at renewal? Greater of fair market value or 3% escalations of rent
What is the typical rent-free period, if any? Short-term leases typically do not receive any free rent; long-term leases typically receive 1-4 months.
What is the typical rent escalation? Annual rent bump of 4%-6%, on average
Does the tenant have the right to sublet? Typically to a related/subsidiary company.Otherwise, sublets require the landlord’s written approval.
What is the terminology of the purchase agreement? Sale & Purchase Agreement
What is the average cost? Warehouse: $100 per sq. ft.
Manufacturing: $100 per sq. ft.
What is the agency fee and who pays? Split 5% fee paid by seller.
What is the typical LTV? 65%-70%
What is the average borrowing rate? 4.25%-4.5%
What is the mode of payment? Part of the payment is made when the transaction contract is signed, and the remainder is paid when the transaction is completed 60-90 days later.
What are the average transaction (closing) costs? Transfer tax of 1%-2% plus attorney and title fees.
What is the average clear ceiling height? 34'
Average number of dock doors? 1 / 7,500 sq. ft.
Typical column spacing? 50' x 50'
Average parking ratio? 0.75 / 1,000 sq. ft.
Sprinkler system? ESFR
What is the typical power supply? 1600 amps