Please help analyze this sqft Small Warehouse Development Opportunity in Los Angeles

[Roland Mills]

Hi BP community ! I came across an opportunity to build a small warehouses. 8k sqft in an industrial area in Los Angeles Area.

I did some research, and the market price currently is about $300-400 per sq ft for industrial warehouse. While $400 is brand new building Nicely built price. 

To build a 8k warehouse with bricks, I'm getting rough bid around $175/sqft. , the lot cost is $110 per buildable sq ft. so the total cost will be around $300 / sqft. x8k = 2.4MM

While residential ADU building in LA (1200 sq ft ) for $200-220 /sqft, building industrial cost $175 ?

Is the building cost not making sense or the market ?

So the building cost is about the same as an older building. Is it worth the development ? or the building cost could be cheaper ?

Anyone with experience please help thank you !