Typically with MTM since you aren't really guaranteed any term, you'll need to underwrite downtime where the spaces sit vacant while you can do any work and re-lease them.

This market never has a downtime as there are always tourists visiting Dubai and searching for luxury accommodation 

In my experience, it typically takes at least 2 weeks to a month to re lease a unit and have a new tenant move in. 3% vacancy implies about 11 days down time in between leases which doesn't feel realistic.

Also pay attention to how much TI/LC's are generally given to industrial tenants in your market and what is the downtime once a tenant vacates.

I think the downtime between expansion builds is a huge seed capital burden.

so one month downtime?  

I had over 460 HML on the books 400 of my clients were from LA... and had bought turn key in 8 different markets were I funded deals.NOw granted this was melt down time..

Hey everyone, I own a home improvement business and was wondering if property preservation was a good way to fill that lousy down time is contractors don't want.

Don't forget games for the downtime.

Meaning no down time waiting for the basement to be dug and foundation poured.