To calculate the efficiency of an industrial property, you need to grasp two concepts: (1) storage area and (2) gross leasable area (GLA). Once you understand these ideas, you should take value 1 and divide it by value 2, and this will give you the result of the property's efficiency rate. Find it confusing? Let me explain it better.

The storage area is the space that the tenant will use to store products. On the other hand, gross leasable area (GLA) is the total available space for leasing, both measured in square meters.

To simplify further, let's imagine a fictional scenario: There´s a company that sells doors, and after years of success, they decided to move out to a better and bigger space.

While looking for a new industrial property, they found an interesting space with 1,000 sqm of gross leasable area, and the owner informed me that the storage area was 900 sqm. So, they used the calculation mentioned earlier, dividing 900 by 1,000, and the result was 0.9, which means 90% efficiency.

Following the example, an efficiency of 90% means that 90% of all leased area offers a quality r product storage capacity. It's essential to remember that just because a development has a larger gross leasable area doesn't necessarily mean it has higher efficiency.

For prospective tenants, the efficiency of a property plays a pivotal role in their selection of an industral facility. It is essential that the chosen facility can seamlessly cater to the unique operational and logistical requirements of each company.

SiiLA's Market Analytics platform features comprehensive data on the efficiency of industrial properties. This information is invaluable for facilitating access to vital insights and enabling professionals in the market to conduct more informed asset analyses. Discover this solution today!

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