Industrial/Warehousing Complex

[pursefattener]

Currently looking at a complex of 5 lots with a wide range of sheds and offices . Each lot is leased separately .

There is a large common area which is causing friction . One of the tenants is upsetting everyone and the owner of the site has become a "don't wanter".

Getting details of lease agreements and current rental values from agent on Monday .

What should i be looking out for ?

Shawn

 

[Dazz]

Hi Shawn,

Sounds just like our "Ugly Duckling" that we took over 3 years ago.

What can you look forward to ??

Lots of fighting / squabbling / threats - both verbal and physical, bugger all rent from the pesky ones and a great big fat headache for months on end.

If you can put up with all of that, you'll probably have a good crack at increasing the rental yield and capital value of the place.

My strong recommendation is never have any "common laydown area". tenants will fight worse than junkyard dogs over it, and they get very vindicative. They all need their exclusive areas, preferably with a big fence in between, failing that, a big fat painted line permanently scribed on hardstand that cannot be removed easily.

Your objective I'd imagine is also to be a "don't wanna".....the last thing you have time for is to the judge in amongst the squabbling - for two very good reasons. Number 1 is there is absolutely no revenue to be had from it, and Number 2 is when you're not there they'll bad mouth you as the absent party anyway.

Good luck Shawn - they can either be a minefield, or a goldmine.