Bit long I?m afraid?.
Putting some thought into the idea of purchasing one or more small retail stores (possibly dry cleaning store) in popular shopping strips as long term investments.
I?m particularly interested in dry cleaning stores as I have other interests in dry cleaning which would enable me to use any purchased store as a drop off store to provide income should it become vacant. The continued same use of the store would mean that a drop off store should easily cover any outgoings whilst vacant as well as making the site more attractive to future possible dry cleaning tenants.
Anybody with any experience re the possibility of contamination on these types of sites?
I?ve had a look at the NSW EPA site and the list of contaminated sites. Out of 350 (approx) dry cleaner shops in NSW only 4 sites appear on the list of approx 1500 reported contaminated sites. Out of these 2 are industrial sized plants, 1 was found to have insignificant contamination and the other has not yet been assessed.
I will obviously have a chat with the EPA and get as much info as possible. Any site would require some serious environmental DD. Just thought I?d open it up to the SS brains trust who may have had some experience in this area.
Other alternatives are:
To purchase a small retail premises tenanted by other types of businesses that again could be used as a dc drop off store during any vacancy periods ? this would remove the contamination risk.
To purchase a vacant small retail store that could be used as a dc drop off store until a tenant could be found ? this would remove the contamination risk and reduce the purchase price.
My thoughts are that the following cons of buying a tenanted dc store:
Risk of existing contamination
Continued risk of contamination during ownership
Expensive environmental DD for small purchase
Higher price of tenanted premises due to popular price range for smaller investors who want a tenanted investment.
Probably outweigh the benefits of any extra revenue that a store may receive when used as a dc drop store during any vacancy period due to the continued same business use.
As an interesting point here?s two stores in the same complex, one tenanted by a dry cleaner and one vacant.
http://www.realcommercial.com.au/property-retail-nsw-cremorne-501152939
http://www.realcommercial.com.au/property-retail-nsw-cremorne-501110187
Love to hear your thoughts
Putting some thought into the idea of purchasing one or more small retail stores (possibly dry cleaning store) in popular shopping strips as long term investments.
I?m particularly interested in dry cleaning stores as I have other interests in dry cleaning which would enable me to use any purchased store as a drop off store to provide income should it become vacant. The continued same use of the store would mean that a drop off store should easily cover any outgoings whilst vacant as well as making the site more attractive to future possible dry cleaning tenants.
Anybody with any experience re the possibility of contamination on these types of sites?
I?ve had a look at the NSW EPA site and the list of contaminated sites. Out of 350 (approx) dry cleaner shops in NSW only 4 sites appear on the list of approx 1500 reported contaminated sites. Out of these 2 are industrial sized plants, 1 was found to have insignificant contamination and the other has not yet been assessed.
I will obviously have a chat with the EPA and get as much info as possible. Any site would require some serious environmental DD. Just thought I?d open it up to the SS brains trust who may have had some experience in this area.
Other alternatives are:
To purchase a small retail premises tenanted by other types of businesses that again could be used as a dc drop off store during any vacancy periods ? this would remove the contamination risk.
To purchase a vacant small retail store that could be used as a dc drop off store until a tenant could be found ? this would remove the contamination risk and reduce the purchase price.
My thoughts are that the following cons of buying a tenanted dc store:
Risk of existing contamination
Continued risk of contamination during ownership
Expensive environmental DD for small purchase
Higher price of tenanted premises due to popular price range for smaller investors who want a tenanted investment.
Probably outweigh the benefits of any extra revenue that a store may receive when used as a dc drop store during any vacancy period due to the continued same business use.
As an interesting point here?s two stores in the same complex, one tenanted by a dry cleaner and one vacant.
http://www.realcommercial.com.au/property-retail-nsw-cremorne-501152939
http://www.realcommercial.com.au/property-retail-nsw-cremorne-501110187
Love to hear your thoughts
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