Commercial Office
- Thread starter HOUSE5
- Start date
Some immediate questions pop into my mind:
how long does the lease have left to run?
How does the $/sqm rate compare when compared with other sales of office space in the area?
How does the rent $/sqm compare when comparing with other rentals of similar sized office space in the area?
What provisions for rent increases are included in the rent?
Is that rent a gross rent or a net rent?
What are the tenant's plans after the initial 3 year term expires?
Can you afford to hold it without a tenant if the tenant doesn't excercise his option after the first 3 year term expires?
Does it include parking?
Is the tenant paying for the parking as part of the $/sqm?
Aside from needing answers to the above, I wouldn't look at it with a 6.% return...not enough for my liking.
how long does the lease have left to run?
How does the $/sqm rate compare when compared with other sales of office space in the area?
How does the rent $/sqm compare when comparing with other rentals of similar sized office space in the area?
What provisions for rent increases are included in the rent?
Is that rent a gross rent or a net rent?
What are the tenant's plans after the initial 3 year term expires?
Can you afford to hold it without a tenant if the tenant doesn't excercise his option after the first 3 year term expires?
Does it include parking?
Is the tenant paying for the parking as part of the $/sqm?
Aside from needing answers to the above, I wouldn't look at it with a 6.% return...not enough for my liking.
hi HOUSE5
I would add
is it cbd and whats the current and expected growth for the area.
6% is low but if its got a 6% annual increase then would have to depend if I need the property as it was a key to a development.
but as a stand alone purchase it needs to be in the area of 8 to 9% and thats cbd.
so it would not be for me unless it had something added to it that you want.
I would add
is it cbd and whats the current and expected growth for the area.
6% is low but if its got a 6% annual increase then would have to depend if I need the property as it was a key to a development.
but as a stand alone purchase it needs to be in the area of 8 to 9% and thats cbd.
so it would not be for me unless it had something added to it that you want.
I'm embarrassed to say I can't answer many of these questions.
Some immediate questions pop into my mind:
how long does the lease have left to run? I think it was a full 3x3 (don't know for sure, OK that's something I need to get down on paper)
How does the $/sqm rate compare when compared with other sales of office space in the area? Not much around to compare it with. I plan on start looking for some to do some comparisons next week.
How does the rent $/sqm compare when comparing with other rentals of similar sized office space in the area? I haven't checked, YET.
What provisions for rent increases are included in the rent? I don't know.
Is that rent a gross rent or a net rent? Net +gst + all outgoings
What are the tenant's plans after the initial 3 year term expires? I don't know.
Can you afford to hold it without a tenant if the tenant doesn't excercise his option after the first 3 year term expires? OK, I need to do the figures for that one.
Does it include parking? Yes, 2 spaces.
Is the tenant paying for the parking as part of the $/sqm? I don't know. Not as far as I know.
Aside from needing answers to the above, I wouldn't look at it with a 6.% return...not enough for my liking. You are probably right.
It is a strata titled office and cannot be developed further.(which addresses grossreals comment also. I also need to find out the expected growth for the area
OK, my homework for this weekend and next week is to answer all of those questions and then I will return with all the answers.
Thanks JoannaK and grossreal.
What a great place to learn, Thanks
Some immediate questions pop into my mind:
how long does the lease have left to run? I think it was a full 3x3 (don't know for sure, OK that's something I need to get down on paper)
How does the $/sqm rate compare when compared with other sales of office space in the area? Not much around to compare it with. I plan on start looking for some to do some comparisons next week.
How does the rent $/sqm compare when comparing with other rentals of similar sized office space in the area? I haven't checked, YET.
What provisions for rent increases are included in the rent? I don't know.
Is that rent a gross rent or a net rent? Net +gst + all outgoings
What are the tenant's plans after the initial 3 year term expires? I don't know.
Can you afford to hold it without a tenant if the tenant doesn't excercise his option after the first 3 year term expires? OK, I need to do the figures for that one.
Does it include parking? Yes, 2 spaces.
Is the tenant paying for the parking as part of the $/sqm? I don't know. Not as far as I know.
Aside from needing answers to the above, I wouldn't look at it with a 6.% return...not enough for my liking. You are probably right.
It is a strata titled office and cannot be developed further.(which addresses grossreals comment also. I also need to find out the expected growth for the area
OK, my homework for this weekend and next week is to answer all of those questions and then I will return with all the answers.
Thanks JoannaK and grossreal.
What a great place to learn, Thanks
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