To determine the value of an Industrial investment property several criteria are considered. Comparable property sales in the area are reviewed, along with net operating costs, cap rates, and the price of the property per square foot. If the building is leased, a buyer would look at lease terms for the current tenants and the quality of the tenants as well. The vacancies in the area as well as market rent rates.  Location is also a consideration when determining property value. If the property can be diversely used for more than one type of business, this can help to increase the cost and rental rates. Owner-occupied properties may also be evaluated based on the economic benefit of owning versus leasing.