Industrial Real Estate NOI Calculator
Industrial real estate (warehouse, logistics, last-mile distribution) is the hottest commercial asset class. NNN leases mean tenants pay taxes, insurance, maintenance — landlord NOI = base rent minus capex reserve.
| Base rent income | — |
| NNN reimbursements (CAM+tax+ins) | — |
| Gross income | — |
| NNN pass-through expenses (offset) | — |
| Owner-side costs (mgmt + reserves) | — |
| Net Operating Income | — |
| Cap rate at purchase price | — |
Industrial real estate — warehouse, distribution, last-mile logistics — has been the strongest commercial asset class of the last decade. E-commerce growth, supply chain reshoring, and last-mile delivery compression drive structural demand. NNN lease structure means tenant pays taxes, insurance, and CAM — landlord NOI margin runs 90-95% of base rent. Cap rates 4.5-7.5% by market and tenant credit.
NNN Lease Math
NNN = Triple Net. Tenant pays base rent PLUS three nets: Net taxes, Net insurance, Net common area maintenance (CAM). Landlord's gross income = base rent + reimbursements. Landlord's expenses = the same CAM/tax/insurance (pass-through). NOI = base rent minus capex reserve and asset management fee. Result: landlord margin runs 90-95% of base rent, much higher than gross-lease residential.
Cap Rate Drivers
(1) Market: Inland Empire CA, NJ ports, Dallas, Atlanta trade 4.5-5.5%. Phoenix, Memphis, Columbus 5.5-6.5%. Secondary markets 6.5-7.5%. (2) Tenant credit: investment-grade tenants (Amazon, FedEx, Walmart, UPS) trade 50-150 bps below local market cap. (3) Lease term: 10+ years remaining = full market cap; 3-5 years = 50-100 bps wider. (4) Building class: modern bulk distribution (30'+ clear height, ESFR sprinklers) tightest; older infill warehouses wider.
Last updated May 2026. Sources: CBRE Industrial Outlook.