Multi tenanted retail

[acer]

Hi, any thoughts on on a multi tenanted retail proerty?

One Im looking at has solid main tenant that occupies 30% of space and pays 60% of rent. The problem as I see it is the headache in managing the other 15 tenants/leases that only pay 40% (but require the same management). Retail lease costs cannot be passed to tenant in NSW, so will add greatly to expense. Also common areas require maintenance that will have to carried.

The majority of these tenants form an arcade / and 1st level office area, which doesnt attract the quality. Is it best to keeop away?

Any thoughts?

acer

 

[skater]

Hi, any thoughts on on a multi tenanted retail proerty?

One Im looking at has solid main tenant that occupies 30% of space and pays 60% of rent. The problem as I see it is the headache in managing the other 15 tenants/leases that only pay 40% (but require the same management). Retail lease costs cannot be passed to tenant in NSW, so will add greatly to expense. Also common areas require maintenance that will have to carried.

The majority of these tenants form an arcade / and 1st level office area, which doesnt attract the quality. Is it best to keeop away?

Any thoughts?

acer

Is it City, or Regional? What is the yeild? When do the leases expire? Are there any vacant? If vacant, are they usually easy to get new leases for? What is the cost of the likely maintenance?

 

[acer]

Is it City, or Regional? What is the yeild? When do the leases expire? Are there any vacant? If vacant, are they usually easy to get new leases for? What is the cost of the likely maintenance?

The property is regional, but strong coastal town. The yeild on price (not what I would pay) would be 5-6% but there is upside as vacancies exist. Main lease is 5yr but others are monthly. There are vacancies in the area which is a concern.

Maintenance could be an issue as multiple tenants would = increased maintenance requests?

I like the location which is what attracted me to the property, but it does have issues.