Market segments
- E-commerce fulfillment (Amazon, Walmart, Target)
- 3PL (DHL, XPO, GXO, Maersk)
- Manufacturing
- Food + beverage distribution
- Auto + parts distribution
- Building products / home improvement
Warehouse KPIs.
Warehouses are storage and distribution buildings, ranging from small last-mile (50-100k SF) to bulk distribution (500k-1M+ SF). Performance is measured in NOI per square foot, square-foot yield, clear height (drives storage cube + premium rent), and tenant credit. Last-mile warehouses near population centers command 2-3× rent premium vs bulk distribution due to e-commerce demand. Comparable REITs (PLD, FR, REXR, EGP, STAG, TRNO) report extensively. Tenant categories: e-commerce, 3PL, manufacturing, food distribution. Modern bulk warehouses run 32-40 ft clear height; older buildings 20-26 ft. Triple-net (NNN) lease structure is standard, often with CPI escalators. Ilora.ai ingests rent rolls, NNN lease abstracts, building specifications (clear height, dock count, power, ESFR sprinkler density), tenant credit reports, and capital plans, then benchmarks against PLD (Prologis — global leader), FR, REXR (LA infill), EGP (Sun Belt), STAG, TRNO (coastal infill), and PLYM. NAIOP, SIOR, ULI Industrial Council, and CSCMP are canonical.
13 definitions · Sector: INDUSTRIAL · Used by Ilora.ai specialist AI agents
- NOI
- Total revenue minus operating expenses (excludes financing and capital costs). The primary measure of property-level profitability.
- Cap Rate
- Net Operating Income divided by current property value. Expresses unleveraged annual yield as a percentage.
- DSCR
- Net Operating Income divided by total annual debt service. Lender-required cushion measure; below 1.0 means NOI cannot cover debt.
- LTV
- Loan amount divided by property value. Lower LTV = lower lender risk.
- OER
- Operating expenses divided by gross revenue. Lower is better, but varies by property type (hotels run higher than triple-net retail).
- GRM
- Property value divided by gross annual rental income. Quick valuation shortcut; less precise than cap rate.
- IRR
- Annualized return on investment accounting for time value of money across the full hold period.
- CoC
- Pre-tax annual cash flow divided by total cash invested. Measures the cash yield, not total return.
- DCF
- Valuation method that projects future cash flows and discounts them to present value at a chosen rate.
- TTM
- A rolling sum of the most recent 12 months. Smooths seasonality for KPI comparisons.
- PUE
- Total facility power divided by IT equipment power. Lower is better — 1.0 is theoretical perfect.
- SF Yield
- NOI per rentable square foot. Comparable measure across industrial buildings of different size.
- Clear Height
- Distance from finished floor to lowest overhead obstruction. Drives storage cube and rent premium.
Net Operating Income
NOI = Revenue − Operating Expenses
Capitalization Rate
Cap Rate = NOI ÷ Property Value
Debt Service Coverage Ratio
DSCR = NOI ÷ Annual Debt Service
Loan-to-Value
LTV = Loan Amount ÷ Property Value
Operating Expense Ratio
OER = Operating Expenses ÷ Gross Revenue
Gross Rent Multiplier
GRM = Property Value ÷ Gross Annual Rent
Internal Rate of Return
Cash-on-Cash Return
CoC = Annual Cash Flow ÷ Total Cash Invested
Discounted Cash Flow
Trailing Twelve Months
Power Usage Effectiveness
PUE = Total Facility Power ÷ IT Equipment Power
Square Foot Yield
Clear Height
Sub-types
Sub-types within Warehouse.
- Bulk Distribution
- 500,000+ SF distribution buildings, cross-dock or rear-loaded; multi-tenant or single-tenant.
- Regional Distribution Center
- 200-500k SF distribution serving regional markets.
- Last-Mile Warehouse
- 50-150k SF infill near population centers; e-commerce-driven premium.
- Manufacturing / Light Industrial
- Manufacturing-suited buildings with heavier power, HVAC.
- Flex Industrial
- Combination office + warehouse, often serving small business tenants.
- Cold Storage Warehouse
- Refrigerated/freezer warehouses; treated as separate property type.
Amenities & features
7 amenities Ilora.ai tracks for Warehouse.
- Loading Docks
Number and type (drive-in vs dock-high) drives tenant fit.
- Dock doors per 10,000 SF
- Dock-door utilization
- Trailer Parking
Storage for inactive trailers; e-commerce + 3PL critical.
- Trailer spots per 1000 SF
- Office Component
Built-out office space (5-15% of building) for tenant operations.
- Office mezzanine PSF
- Cross-Dock Configuration
Doors on both sides of building for high-throughput cross-docking.
- Cross-dock throughput
- Clear Height
Floor-to-ceiling height. Modern bulk = 32-40' clear; older buildings 20-26'.
- Clear height (feet)
- Storage cube per SF
- Power Capacity
Available kW for e-commerce automation, refrigeration, manufacturing.
- kW per 1000 SF
- Rail Access
On-site rail spur for bulk shipping. Limited subset; commands premium.
- Rail-served square footage
Industry reference
How the warehouse sector operates.
Operating models
- Owner-operated single-tenant
- Owner-operated multi-tenant
- REIT-owned + operator-managed
- Triple-net (NNN) leased
- Build-to-suit
Regulatory frameworks
- BOMA measurement standards
- Local zoning (M-1, M-2 industrial)
- OSHA workplace safety
- EPA stormwater + chemical handling
- DOT trucking access requirements
- Fire code (sprinkler density per ESFR)
Industry organizations
- NAIOP
- SIOR (Society of Industrial and Office Realtors)
- ULI Industrial Council
- IIDC
- CSCMP (Council of Supply Chain Management Professionals)
Comparable public REITs / operators
- PLD (Prologis)
- FR (First Industrial Realty)
- REXR (Rexford Industrial)
- EGP (EastGroup Properties)
- STAG (STAG Industrial)
- TRNO (Terreno Realty)
- IIPR (Innovative Industrial Properties — cannabis)
- PLYM (Plymouth Industrial)
Documents Ilora.ai ingests
- Rent roll
- T-12 P&L
- Lease abstracts (with NNN expense detail)
- Site plan with dock + trailer parking
- Building specifications (clear height, power, sprinkler)
- Tenant credit reports
- Capital plan (roof, parking lot, dock equipment)
- Property tax bills + appeals
- Environmental site assessment (Phase I/II)
Industry tools (we integrate with these)
- Yardi Commercial
- MRI Industrial
- Argus Enterprise
- Argus DCF
- CoStar Industrial
- JLL DataIntel
- Cushman Industrial Insights
- VTS (leasing CRM)
- BuildingsIOT (IoT for industrial ops)
- Honest Buildings (capital projects)
Frequently asked
Common questions about warehouse.
- What is clear height in warehouse leasing?
- Clear height is the unobstructed vertical distance from finished floor to the lowest overhead obstruction (joist, sprinkler, light fixture). Modern bulk distribution requires 32-40' clear to support racking + automation; older infill buildings often run 18-24'. Clear height directly drives storage cube per square foot — a 36' building stores 50% more pallets than a 24' building of the same footprint.
- How are last-mile warehouses different from bulk distribution?
- Last-mile warehouses (50-150k SF) sit within urban infill near population centers (within 30-60 minutes of delivery destinations). They serve e-commerce + retail same-day delivery. Rents run 2-3× higher than bulk distribution due to land scarcity and demand intensity. Comparable REIT: REXR (Rexford Industrial — pure-play LA infill industrial).
- How do industrial NNN leases work?
- Industrial NNN (triple-net) leases pass through property taxes, insurance, and CAM (common area maintenance) directly to the tenant. The landlord receives "net" rent free of operating expense risk. Industrial leases typically include CPI escalators (annual rent bumps tied to inflation) and renewal options. NNN structure commands tighter cap rates because investors get bond-like cash flow.