Which one of the following is NOT part of hard costs in industrial properties?

• A. Materials for construction
• B. Labor for building
• C. Land acquisition costs
• D. Equipment installed inside the building

Answer: (C)

The answer is based on the distinction between hard costs and other types of costs associated with industrial properties. Hard costs typically refer to the tangible expenses incurred during the construction phase of a project. These include materials for construction, labor for building, and equipment that is installed inside the building.

Land acquisition costs, on the other hand, are generally categorized as soft costs rather than hard costs. Soft costs encompass expenses that are not directly tied to the physical construction of the property, such as legal fees, permits, and financing costs, along with land acquisition. Since hard costs typically reflect spending that contributes directly to the physical structure and its immediate operational components, land acquisition does not fall under this direct category, which makes it the correct choice.