I am breaking my own rule by asking this type of question, but here goes.
Looking at CIP for a little time now, and have decided that at least for Melb metro (inner suburbs) retail commercial property is at a yield that doesn't enthuse and the price point is generally $1m+. I have generally not looked at outer suburbs.
I have come across an office/warehouse located in an industrial park in Port Melbourne - there are a few I admit being built in and around that area of Port Melbourne. It is 5 years old. The property is a semi-attached 2 level office/warehouse (209 sqm in total plus 3 car spaces). The owner of the business is selling due to a divorce and is offering to sign a 5 x 5 lease upon settlement which based on the current asking price is a 7.3% yield. The business itself is well established (11 years) and has a good reputation in the industry it operates in from what I have been able to find out.
Because of the price point, the property is 'in play' from a finance perspective. However, my thoughts about these industrial parks is that they may be a bit like the commercial property equivalent of near new apartments in high rise apartment blocks. There are a few vacancies in the same park being offered for both sale and lease. The size of the park is ~30,000 sqm, has office suites, office terraces and office/warehouses of sizes up to 330sqm.
What are people's thoughts around investing in industrial park?
Looking at CIP for a little time now, and have decided that at least for Melb metro (inner suburbs) retail commercial property is at a yield that doesn't enthuse and the price point is generally $1m+. I have generally not looked at outer suburbs.
I have come across an office/warehouse located in an industrial park in Port Melbourne - there are a few I admit being built in and around that area of Port Melbourne. It is 5 years old. The property is a semi-attached 2 level office/warehouse (209 sqm in total plus 3 car spaces). The owner of the business is selling due to a divorce and is offering to sign a 5 x 5 lease upon settlement which based on the current asking price is a 7.3% yield. The business itself is well established (11 years) and has a good reputation in the industry it operates in from what I have been able to find out.
Because of the price point, the property is 'in play' from a finance perspective. However, my thoughts about these industrial parks is that they may be a bit like the commercial property equivalent of near new apartments in high rise apartment blocks. There are a few vacancies in the same park being offered for both sale and lease. The size of the park is ~30,000 sqm, has office suites, office terraces and office/warehouses of sizes up to 330sqm.
What are people's thoughts around investing in industrial park?