Comparable rents (often called "comps") are recent lease transactions for similar industrial buildings in the same or a closely related submarket, used as a benchmark for evaluating whether a specific rent quote is at, above, or below market rent. Strong comps are essential ammunition for lease negotiation, whether you're a tenant pushing back on an asking rent or a landlord justifying a pricing position.
What makes a good comparable
| Comparability factor | Why it matters |
|---|---|
| Same or adjacent submarket | Location drives significant rent variation |
| Similar clear height and specs | Building quality directly affects achievable rent |
| Similar size range | Larger and smaller spaces often have different rent dynamics |
| Recent transaction date | Market conditions shift, making older comps less reliable |
What to watch for before committing
Genuine comparability, not just proximity
Confirm cited comps genuinely match in specifications and size, not just geographic proximity to your target property.
Recency of the comp data
Prioritize the most recent available transactions, since older comps may not reflect current market conditions.
Effective rent vs asking rent in comps
Confirm whether cited comps reflect effective rent (accounting for concessions) or just asking rent, since this significantly affects their usefulness.
Sample size adequacy
Rely on multiple comparable transactions rather than a single data point, which could be an outlier.
Lease structure consistency
Ensure comps use a consistent lease structure (NNN, gross, etc.) for accurate comparison to your specific situation.
Source credibility and access
Work with a tenant rep broker who has access to genuine, verified transaction data rather than relying solely on publicly available or self-reported figures.
When you need to know this
- Negotiating a new lease — using comps to support your position on rent, concessions, or other terms
- Evaluating a renewal option reset to market rent — providing evidence for what current market rent actually is
- Assessing whether an asking rent is fair — comparing quoted pricing against genuine recent comparable transactions
- Investment underwriting — validating in-place or projected rents against actual market transaction data
Frequently asked questions
Ready to negotiate with strong market data?
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