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
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