Commercial options for vacant land

[funklaroon]

Hi All,

An opportunity has arisen to develop a commercial space in the Landsborough area near the train station. Just wondering what options I have, thoughts include:

- Storage spaces
- Medical centre/office space

Currently there is a house on the property however that will be removed in due course. What approach should I take in terms researching other options.

Thanks

 

[John M]

Hi there,

Without knowing the size, zoning implications and the area I can't really make a specific comment. However, I recommend you take a good look at the zoning implications and talk to some local agents as to the demand in the area for medical, office space, storage space as well as the rates per square metre which would be expected, and expected time to find suitable tenants. The local agents should also be able to advise what sizes to build (ie there may be an oversupply of 300sqm+ offices but a very low supply and high demand for 40-80sqm offices).

You may receive a much higher rate per square metre for medical space; however, there may not be any demand so you may receive a higher return from building something else.

So in summary you need to examine and weigh up:
- zoning implications (ie what can be built there)
- supply and demand of each option (medical, office, storage facility, large factory etc)
- expected rates per square metre
- construction costs (obviously)
- expected time to tenant building

You really need to talk to local agents to ascertain levels of supply and demand. Look on RealCommercial and see what sizes are available. If there are 50 offices 300sqm+ vacant, you probably shouldn't build that. If medical suites are leasing within a week, that may be a better option. But there will probably be slightly higher construction costs as you will need to provide water to each room etc etc

Sorry I couldn't provide any specific info on the area. I hope this has helped somewhat, and I wish you all the best with it!

 

[Player]

What does the zoning allow?

Ascertain the zoning of the land and look up the town plan on the council website and it will indicate what complying uses will be. Also ring the council and ask to speak to the town planner. They are usually helpful to clarify any queries you have.

If it's Landsborough on the Sunshine Coast and you appear to be in Brisbane, have a good drive around the commercial precinct and get a feel of what the demand may be. There is a big difference b/w sq m rate$ for medical/office and storage type facilities. Council may also be able to indicate what they perceive to be in the community's interests and what they would like to see there.

Office, medical or retail would be the highest and best use as far as return. Perhaps, being close to the train station as you've indicated a mixed use type development may be appropriate (eg: retail, office above and resi above that). I've never been to Landsborough so could be wrong for the population or demographic there, however they are some ideas.

Ascertain current zoning, first and foremost.

 

[tomhall]

You need to get some town planning advice from a suitably qualified town planner. Your estate agent is only going to give you an idication of market value or some demand, which is very useful. A town planner will be able to give you a complete run down on what the site's zoning allows, type of development application you will require and costs, indication of Council's current position towards development, development constraints/implications and additional expert consultants that may be required to deal with site issues (traffic, acoustic, flooding etc.).

Once you have some sound advice you should enough information to run some figures.
Let me know if you don't have a town planner and i can point you in the right direction.

 

[RPI]

You need to get some town planning advice from a suitably qualified town planner. Your estate agent is only going to give you an idication of market value or some demand, which is very useful. A town planner will be able to give you a complete run down on what the site's zoning allows, type of development application you will require and costs, indication of Council's current position towards development, development constraints/implications and additional expert consultants that may be required to deal with site issues (traffic, acoustic, flooding etc.).

Once you have some sound advice you should enough information to run some figures.
Let me know if you don't have a town planner and i can point you in the right direction.

What he said, but then maybe I could be slightly impartial