Cip #2

[Dazz]

Nice one Trogdor.


Don't know how you plan to take advantage of the "next door" situation of both of your properties - can it be done ??


Questions ;


(a) Personal guarantees from Directors....but any actual cash or hurt money from them ??

(b) Does the 2 month rent push the nett rent from 6.1% down to 5.9%, or is the quoted 6.1% already taking the 2 months free into account ??

(c) What type of business is the Tenant in ??

(d) Have they run businesses before ??


Good onya for leasing retail. I've got 5 shops left - all empty - and not a sausage, not a sniff, not a hint of an EOI from prospective Tenants, so you are doing better than me.


Top stuff. Thanks for posting a follow up. Someone out there giving it a crack and making good. I bet you could fill 3 books with the knowledge you've picked up doing those two deals.

 

[Trogdor]

Nice one Trogdor.

Don't know how you plan to take advantage of the "next door" situation of both of your properties - can it be done ??

Would really be if one became vacant in the future and the other tenant wanted to expand (they could be opened up into one contigious space), though I suspect the rent would be higher $/m2 as two tenancies so in all honesty they will probably stay seperate.

Nice one Trogdor.

(a) Personal guarantees from Directors....but any actual cash or hurt money from them ??

Just the 1 month deposit and the two g'tees.

Nice one Trogdor.

(b) Does the 2 month rent push the nett rent from 6.1% down to 5.9%, or is the quoted 6.1% already taking the 2 months free into account ??

The former. You are correct with the analysis, but I saw it better to keep face rents higher, and also get somebody in now (could easily have been vacant for 2 months more).

Nice one Trogdor.

(c) What type of business is the Tenant in ??

Real Estate Agent.

Nice one Trogdor.

(d) Have they run businesses before ??

Yep.

Nice one Trogdor.

Good onya for leasing retail. I've got 5 shops left - all empty - and not a sausage, not a sniff, not a hint of an EOI from prospective Tenants, so you are doing better than me.

As somebody who has now played in retail, industrial and commercial - what do you see the differences between securing tenants in these spaces? Are any easier than the others?

How big are each of your 5 retail shops by the way?

I get the feeling there is no point stretching to get a similar sized CIP in the near term, much better to wait a til later on down the track and try and pick something 3 or 4 times the price and get some more "institutional" tenants in. The current CIPs are much much better than resi, but I can see the next level up being much better again!!

Top stuff. Thanks for posting a follow up. Someone out there giving it a crack and making good. I bet you could fill 3 books with the knowledge you've picked up doing those two deals.

Thanks Dazz. Slowly learning

 

[Bird Dog]

Congratulations Trogdor..
After seeing the up's and downs with retail lately, you must be quite relieved to see a signed piece of paper requesting the rental of your asset..

Well done.

I can sympathise with what you said about looking for a tenant prior to settlement.
Although this seems great in principle, it's akin to dangling your line in the river outside normal fish feeding times. Sure you may get a random bite but it's much more likely you'll secure the right tenant when it's available immediately.
Here's what I have found:
Although tenants may be investing in a lease for 5, 10 or 20 years, they invariably leave their search until the very last minute. This may be because they don't wish to pay advanced rent for an unoccupied building or they have simply left it to the very last minute because they are too busy running a business.
Personally I think it's more likely the later but either way, you're not that likely to find a tenant 6 months out from when the property becomes available.

So once the line is back in the water and it's now feeding time, you'll have more bites as the fish are considerably hungrier and have a much deeper sense of urgency than before.

Congrats again on your lease and all the best.

cheers

B.D