Industrial Park Break-Even Analysis: $84K Monthly Revenue Needed

Fixed costs $71.1K/mo Year 1 base load

Contribution margin 84.5% After variable costs

Break-even revenue $84.1K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this calculator to test monthly revenue against variable costs and the fixed monthly cost base.

Lean Base Full

Monthly revenue Revenue is the cash inflow that has to cover variable costs and then fixed costs. $ Low sales High sales Variable expenses These are direct costs that move with leasing, sales, and project activity. $ Low costs High costs

Money available to cover fixed costs $1,758,533 $2,016,667 revenue - $258,133 variable expenses

Margin ratio

87%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin must cover before profit starts. $ Lean team Bigger team

Break-even chart Revenue Total costs

Which industrial park operating expenses are fixed, and which move with occupancy or sales?

Cost classification

Break-even is reliable only when fixed costs stay fixed and deal-linked fees scale with revenue. Here, $24,000/month of office overhead is fixed, while leasing, brokerage, legal, and permitting fees should flex with sales activity.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Carry $10,000 per month from Month 1 through Month 60, regardless of lease-up pace.	Reducing rent when revenue misses plan.
Corporate Insurance	Fixed	Carry $3,000 per month as base overhead in the monthly break-even floor.	Treating insurance as tied to tenant occupancy.
Management Payroll	Semi-fixed	Model staffing in steps, rising from $565,000 in the first year to $910,000 in Year 5.	Spreading payroll as a flat percentage of revenue.
Brokerage & Sales Commissions	Variable	Apply 5.0% in Year 1, stepping down to 3.0% by Year 5 as revenue scales.	Forgetting commissions on property sales gains.
Marketing & Leasing Commissions	Variable	Apply 6.0% in Year 1, stepping down to 4.0% by Year 5 with leasing volume.	Budgeting one flat monthly amount during lease-up.
Legal & Transaction Fees	Variable	Apply 3.0% in Year 1, declining to 1.5% by Year 5 as deal volume matures.	Putting all legal spend in the fixed retainer line.
Project Specific Permitting Fees	Variable	Apply 1.5% in Year 1, rising and then falling to 1.2% by Year 5.	Ignoring permits when development activity accelerates.
Tenant Reimbursed Site Operating Items	Semi-variable	Tie usage-driven site items to occupancy, with reimbursements rising from $200,000 in Year 1 to $2,800,000 in Year 5.	Treating reimbursements as pure profit instead of margin support.

How does break-even shift from lean launch to full stabilization?

Scenario table

Even the lean case covers fixed costs in the opening month; the real question is how much cushion lease-up adds. Here’s the quick math: variable costs drop from 15.5% of revenue in the lean case to 9.7% in the full case.

Planning case only. These figures are model assumptions, not a guarantee of lease-up, rent, or margin.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$350K	$54.3K	$71.1K	84.5%	$224.7K	Covers fixed costs in the opening month, but the buffer is the smallest.
Base lease-up case	$2.02M	$258.1K	$95.7K	87.2%	$1.66M	Covers fixed costs in the opening month with a solid buffer.
Full stabilized case	$4.23M	$410.6K	$99.8K	90.3%	$3.72M	Covers fixed costs easily, so break-even risk is low.

What pressures can break the industrial park break-even plan?

Stress test

At about $350,000 a month of first-year revenue, the plan clears the roughly $84,100 break-even line. The cushion gets thinner if lease-up slows, fixed costs rise, or tenant reimbursements recover less cleanly.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$84,100	$265,900 cushion	Strong cushion at the base case.
Revenue shortfall	Lease and sales revenue run 25% below plan.	$84,100	$178,400 cushion	Slower lease-up still clears operating break-even.
Fixed-cost increase	Fixed monthly costs rise 20% to about $85,300.	$101,000	$249,000 cushion	Higher overhead pushes the break-even line up fast.
Margin pressure	Contribution margin falls from 845% to 750%.	$94,800	$255,200 cushion	Weaker margins make each delay in leasing hurt more.
Combined pressure	Revenue is 25% below plan, fixed costs rise 20%, and margin stays at 750%.	$113,700	$148,800 cushion	Slower lease-up and cost creep can cut cushion sharply.

What should you verify before you commit land spend on an industrial park?

Founder checklist

Do the park assumptions hold before you buy land and start build-out? For this model, the deal only works if preleases, site access, staffing, and cash line up with the $84.1K monthly break-even and the $911K minimum cash need in Month 1.

1Preleases$84.1K/mo

Verify signed preleases and letters of intent can support at least $84.1K a month, because that is the break-even revenue line.

2ZoningEntitled site

Confirm zoning and entitlement status before any land spend, because site control without use rights can stop the project cold.

3UtilitiesSite-ready

Confirm utility access, road access, and drainage scope before build-out, because missing site work turns budget and timing into guesses.

4Fixed load$71.1K/mo

Make sure Year 1 fixed costs land near $71.1K a month, including the $3,000 insurance line, so the rent roll can clear it.

5Cash cushion$911K

Check that you can fund the Month 1 minimum cash need of $911,000, or lease-up risk can hit before revenue does.

6Hire rampMonth 13

Hold the analyst hire and the leasing team ramp until preleasing is real, so payroll and the $225,000 capex plan don't outrun demand.