Buying land for small industrial warehouses

[Fritz Alvarez]

Hi,

I've been involved many years as a residential builder and investor, but I've been learning as much as possible for some time on the commercial side of the business. I'm currently studying the numbers on a flat, ready-to-build commercial lot which is approved for a 10,000 sq. ft. building and which could be divided into 5 individual warehouses. It is in an industrial area, very close to several large companies, great access, 2/3 of an acre. They're asking $450K. I'm trying to get a better idea of what the cost to build the warehouse would be so I can see if it pencils out as an investment to build and rent out the units. Any ideas? Thanks!