Sell tennanted or vacant

[Ironlady]

Hi

We own a small light industrial workshop with 120m office + 120m ws on 1050m land in regional 2hrs from sydney. It will be located 2-3 min from the F3 extention when it opens late 2013 giving better access to the Hunter Valley (mining) and Newcastle. Our contract work may or maynot last until then, so we are thinking about vacating the premisses. The question is would the property be best sold vacant to an owner operator like us or should we put in a tennant. Not looking for exact answers just ideas so we can then talk to agents.

Thanks Ironlady

 

[Propertunity]

The question is would the property be best sold vacant to an owner operator like us or should we put in a tennant.

The answer will depend on who your target audience will be.
If an owner-operator like yourselves - then with you in it and due to vacate by settlement.
If an investor - then put a tenant in. (investors want yield, and vacant = zero yield).

Speak to the local agent about where the demand would be coming from, & get a couple of opinions, not just one.

 

[thepeoplesagent]

We just about always achieve better results when the property is owner occupied or empty. The problem with having the property tenanted is:

1.You completely remove your owner occupier market
2.Agent can sometimes have trouble with access
3.Some tenants do not present the home well
4.Some tenants bag the property in front of the buyer

Don’t worry about not getting an investor to buy the property. An investor will still purchase a property which is not tenanted. Providing the property is able to be easily leased, an investor won’t mind waiting a week to find a tenant.

More important than anything, make sure to price the property correctly.

 

[Propertunity]

We just about always achieve better results when the property is owner occupied or empty. The problem with having the property tenanted is:

1.You completely remove your owner occupier market
2.Agent can sometimes have trouble with access
3.Some tenants do not present the home well
4.Some tenants bag the property in front of the buyer

Don’t worry about not getting an investor to buy the property. An investor will still purchase a property which is not tenanted. Providing the property is able to be easily leased, an investor won’t mind waiting a week to find a tenant.

More important than anything, make sure to price the property correctly.

All of what you have said is pretty true for a residential property, however, the OP is talking about an industrial workshop with an office - completely different scenario.

 

[thepeoplesagent]

All of what you have said is pretty true for a residential property, however, the OP is talking about an industrial workshop with an office - completely different scenario.

Your right... Sorry, I should have read the OP properly.

 

[Aaron_C]

I would say tenanted. There are far more investors than there are owner-occupiers.

 

[HiEquity]

Why not both? Advertise for sale and for lease - this is a pretty regular occurence in this neck of the woods.

If you find someone who just wants to be a tenant then great - sign them up to a long lease on good terms at a good rent and then market the property to investors if you still want to sell. If it takes awhile to sell it doesn't matter because you're sitting on a nice income while you wait.

If an owner occupier comes along wanting to buy then fine - just sell straight up at the right price.

If you keep all options on the table you won't limit your market - no-one ever really knows who the property will actually appeal to when it comes time to put pen to paper.

 

[Ironlady]

Thanks for the replies everyone
We have orders until feb march 2013
That will give us time to talk with agents

Regards Ironlady

 

[Ironlady]

Yes HiEquity was thinking to do something like that
Sorry it takes so long to reply, Im not great on computers and need practice on forum

Thanks Ironlady

 

[DaveM]

Also consider that if there is a lease in place, the premises can be sold as a going concern with no GST payable, which may help someone with purchasing it. If it is empty then the buyer will have to find another 10% to buy even if they claim it back in their next BAS.

 

[Scott No Mates]

If you can find a tenant, why would you still be considering selling the property?

Does it have any special attributes eg: lots of hardstand, office, amenities, easy access to/from freeway, high clearance, semi-access, dual-street access, fully fenced etc?

How many others on the market? What is on the market? How long? Vacant or leased? What is selling?

Putting the factory up for sale/lease simultaneously erodes the value of the site, make one decision and stick with it, don't take an each-way bet (worst case, lease it first, then list for sale).

 

[Ironlady]

Hi

There is some great ideas for us to think about
We need to do some research before we talk to agents

Thanks Ironlady