Location and Market Terms

Comparable Rents (Comps)

Recent lease transactions for similar buildings in the same submarket — the benchmark data set that tells you whether a quoted rent is fair, high, or a genuine bargain.

Home Glossary Location and Market Terms Comparable Rents (Comps)
Definition

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 factorWhy it matters
Same or adjacent submarketLocation drives significant rent variation
Similar clear height and specsBuilding quality directly affects achievable rent
Similar size rangeLarger and smaller spaces often have different rent dynamics
Recent transaction dateMarket 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

What are comparable rents (comps)? +
Comparable rents, or 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.
How do I find good comps for my lease negotiation? +
Work with a tenant rep broker who has access to verified recent transaction data, and prioritize comps that closely match your target building's size, specifications, and submarket.
Should I use asking rent or effective rent comps? +
Effective rent comps are more accurate, since they account for concessions like free rent and TI allowance, giving a truer picture of what tenants actually paid rather than what was initially quoted.
How many comps do I need for a reliable comparison? +
Relying on multiple comparable transactions, rather than a single data point, provides a more reliable benchmark, since any individual comp could be an outlier due to unique circumstances.

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