Industrial Development Break-Even Analysis: Month 31 Target

Fixed costs $24.0K/mo Core overhead

Contribution margin 92% After variable costs

Break-even revenue $26.1K/mo Monthly target

Break-even timing Month 31 Model break-even

Break-even calculator

Test whether monthly revenue covers property management commissions, project overhead, and the fixed staff-and-office base.

Lean Base Full

Monthly revenue Revenue has to cover the gap after variable costs before fixed costs are paid. $ Low sales High sales Variable expenses These are property management, leasing, and project costs that rise with sales. $ Low direct cost High direct cost

Money available to cover fixed costs $97,335 $105,000 revenue - $7,665 variable expenses

Margin ratio

93%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly office, staff, and admin base the margin must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which industrial development expenses stay fixed, and which move with revenue?

Cost classification

Break-even is more reliable when recurring overhead is kept separate from revenue-linked fees and staffing steps. Here, that matters because the model reaches break-even in Month 31 after deep cash burn through Month 30.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $12,000 per month from Month 1 through Month 60, regardless of portfolio revenue.	Allocating it by property and making break-even look better before assets produce income.
Software & Subscriptions	Fixed	Use $2,500 per month as steady platform overhead in the operating break-even model.	Scaling it with revenue without a stated usage driver.
Legal & Accounting Fees	Fixed	Use $4,000 per month as recurring corporate support, not deal-specific capital spend.	Mixing recurring fees with one-time purchase, construction, or entity setup spending.
Corporate Insurance	Fixed	Use $1,000 per month as baseline company coverage across the forecast period.	Dropping it after launch even though the model runs it through Month 60.
Property Management & Leasing Commissions	Variable	Apply the revenue-linked rate, falling from 5.0% in the first year to 3.5% in the fifth year.	Modeling commissions as fixed overhead and overstating margin at low occupancy.
Development & Project Management Overheads	Variable	Apply the percentage of revenue, stepping down from 3.0% in the first year to 2.0% in the fifth year.	Leaving overhead flat while the active development portfolio grows.
Operating Payroll	Semi-fixed	Model payroll in staffing steps, from about $50,000 per month in the first year to about $69,000 per month after full staffing.	Treating all salaries as variable when headcount changes by role and timing.
Utilities & Internet	Semi-variable	Use the $1,500 monthly base, then add site-level usage only when occupied square footage justifies it.	Putting all utility and site usage into fixed overhead before properties are active.

How does break-even shift from a lean launch to a staffed base case and a fuller-leasing mature case?

Scenario table

Lean case breaks even on about $80k/month because fixed overhead is only $74k. The staffed and fuller-leasing cases sit near $100k/month, and the model still shows EBITDA negative in Years 1-2 before turning positive in Year 3.

Planning assumptions only; acquisitions, construction, debt, and taxes can move the real break-even point.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$80,435	$6,435	$74,000	92.0%	$0	Lowest fixed load, so the cushion is thin if leasing slips.
Base staffed case	$100,503	$7,337	$93,167	92.7%	$0	Benchmark case; the broader model still reaches break-even at Month 31.
Fuller-leasing mature case	$99,644	$6,477	$93,167	93.5%	$0	Better margin from fuller leasing, but the fixed base still keeps the threshold near $100k/month.

What breaks the break-even plan if lease-up slips or rent softens?

Stress test

This plan is tight early on: base break-even is about $1,005,000 a month, and a 10% revenue miss leaves roughly a $101,000 gap. If lease-up slips or the two rented sites stay on the books, the required revenue jumps fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,005,000/month	$0 cushion	No cushion if lease-up slips.
Revenue shortfall	Monthly revenue lands 10% under base break-even.	$1,005,000/month	$101,000 gap	A 10% miss pushes the model back into loss.
Fixed-cost pressure	A rented facility adds $45,000 of monthly fixed cost.	$1,490,000/month	$485,000 gap	One rent line raises the break-even load fast.
Margin pressure	Contribution margin slips to 92.0%.	$1,013,000/month	$8,000 gap	A small margin drop still adds real pressure.
Combined pressure	The $45,000 and $55,000 rented facilities both stay open.	$2,084,000/month	$1,079,000 gap	Two rent lines plus slower lease-up can overwhelm the plan.

What should you verify before buying land or starting construction?

Founder checklist

Verify the site, the lease demand, and the cash path before you commit. In this model, break-even lands in Month 31, but cash bottoms at about -$42.29M in Month 30, so the real gate is signed demand and reserve coverage.

1Site ReadyPre-close

Confirm zoning, permits, utilities, and tenant letters of intent before you buy land or release major drawdowns, or you can lock up capital before demand shows up.

2Rent Roll92% CM

Compare the owned sites with the two rented sites at $45K and $55K a month, because that $100K in monthly rent sits on top of a Year 1 contribution margin (revenue left after variable costs) of about 92%.

3Fixed Load$24K/mo

Keep first-year fixed overhead at about $24K a month in view, because that sits on top of the Year 1 payroll run rate of about $50K a month before any project income lands.

4Hiring Ramp$50K->$69.2K/mo

Stage hiring because payroll rises from about $50K a month in Year 1 to about $69.2K a month in Year 2, so add staff only when the pipeline can carry them.

5Build Timing6-15 mo

Tie groundbreak to bids, scope, and contingency, because your build windows run 6 to 15 months and a slip can shove drawdowns into a weaker cash period.

6Cash Cushion-$42.29M

Reserve for $365K of initial capex and the Month 30 cash trough, because minimum cash reaches about -$42.29M and Month 31 break-even is not lender approval.