Fellas,

Does anyone here have an idea of the range of per month lease rates for a contractors storage/laydown yard in Central Texas? This would be for an out-of-town utility contractor's use for vehicle/equipment/materials storage during about an 18-month period.

I've been trying to get a feel for this and have found rates anywhere from $.03/SF/MON to $.15/SF/MON for yards on major highways and that have restricted or limited access. Some of those rates have been outside of Texas (more expensive areas), and since I'm in Central Texas I figure I'd better price this toward the low end for about a 3-acre area. My site is located on a major highway with good access, however.

The proposed yard is on a larger fenced and gated site with several industrial buildings occupied by other industrial tenants. The yard itself has some gravel but is mostly compacted dirt/grass with good drainage.

I don't want to overprice this and miss the deal, but I don't want to leave a bunch of money on the table, either.

Thanks.

Is the contractor signing the lease or the utility that owns the project. Typically the first. Also, are any additional improvements being made, I.e pad, fence,etc. do they have to be removed at the end? Where are you located in relation to the project? Middle of the line, end of the line, etc? Is it on row or off row?

Probably more than you wanted, but this all goes into how much we would pay for a lay down yard.

Thanks.

Yes, it will be the contractor signing the lease and providing the insurance.

At this point, I'm not sure any improvements will need to be made, as the contractor is also interested in one of the buildings on site, so fencing probably won't be required. If they want to lay down some gravel for all their trucks and equipment, I'd be more than OK with that. It could stay. A fence? - not so much. I doubt I'd want to keep that.

My impression is that my place is in the middle of about a 25-mile work radius, so I guess my place won't exactly be more convenient than others would be, although my location's being on a major highway (loop) will help.

I'm not looking to score off these guys. I'm just trying to be realistic, and I recognize that I've never priced a yard before.

Again, thanks for your insight. It's much appreciated.

I am also very interested in this benchmark. I am in similar situation and really can't find any relevant figures

If I recall, the last one we signed was very cheap was only in the $5k range. I'll pull up the lease we signed in the morning. It was 5 acres that we ended up putting caliche on the entire site and a barbed wired fence. All of which stayed. This was also at the corner of two roads so it made a nice little pad when we left. This was out in west Texas. If I can find the one from north Texas,I'll share that too. That wasn't my project so I don't have the specifics though.

Just curious, you mind sharing the contractor? If you'd prefer to take off line shoot me an email at 07.09.14ag AT gmail DOT com.

7&9,

Thanks for sharing some of the info you have on this, and for the west Texas example.

Quote:

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Just curious, you mind sharing the contractor? If you'd prefer to take off line shoot me an email at 07.09.14ag AT gmail DOT com.

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I'd better send you the contractor's name by email, as I don't want to get anybody jammed up.

Everything else, though, feel free to post here since it seems like I'm not the only one who has had trouble figuring what 'market' might be for these kinds of deals.

TexAgs is really a damn good resource for the exchange of information, although some of the stuff on the football board might not exactly be 'information', although it can be entertaining. ;-)

Thanks.

Ribeye,

Just responded to your email.

I did pull the lease we signed and it was $6k for 5 acres for a year. I also pulled the agreement from a project I wasn't involved in directly and that was $2k/month for 10 acres.

7&9,

Thanks for going above and beyond to help me out with that. I'm most appreciative.

If my math is right, my 'low end' wasn't low enough. Instead of $.03/SQFT/MON, it looks more like $.005/SQFT/MON.

Maybe I'll have to throw in a case of beer and a BBQ sandwich to get it up to $.01/SQFT/MON. ;-)

Or maybe not.