Need help analyzing my property

[Merle Sauvola]

I own a few construction related businesses, and want to get into rentals.

I own a two acre property with a small warehouse (2400sf). Over the past year, I have got drawings (architectural, civil, structural, mep) done to expand this property for my business use.

I want to turn the 2400sf warehouse into our office, add 5000sf to that for our warehouse, and add 7000sf building for another warehouse to rent out for now, and eventually expand into.

Now that we’re getting to permit stages, I’m getting “childish” feet, and need help analyzing the numbers.

So, my build cost on the building we would be using is 640k. Civil for the whole property is 260k. To add the 7000sf warehouse is about 500k.

My companies would rent our building off of my holdings business for around 60k/year NNN. I would be shooting for the other building to rent (as mini warehouses) for $72k/year NNN.

Summary;

1.6 million cost (including land I own)

132k/year rents

Is it worth the hassle?

Or;

Should I keep our business warehouse on that property, build a house as an office for our companies for around $500k all in? Rent value would be around 66k/year.

Then put the focus onto duplexes etc? (Either way this will happen).