Hi all. Im looking at a small commercial property 1 in a building of 5. 3 are larger multi office buildings with government leasings for over 10-15 years,only two are small with one being occupied for over 7 years and the one im looking at is owner occupied. Has four rooms but really only two could be used for offices. Recently renovated with kitchen and bathroom also. In a fairly central location although it does not have a street frontage. You must walk up steps for about 10 meters to get to it. Its situated in the area of town that is popular for commercial buildings but this one would be one of the closer ones to the cbd. Realestate says a rent return of $150 to $180 would be expected. Asking around $70,000. What else should i be checking. Commercial is a new thing for me.
Small commercial property
- Thread starter devo76
- Start date
Check to see how many others are for rent that are similar. I have a commercial office that was let when I purchased but when it became vacant it took over 4 months to let. When I bought it I checked and there were waiting lists for small commercial offices but by the time mine became vacant, new offices had been built filling the void.
Chris
Chris
Well i guess im willing to look at anything. The numbers look good and its a very small outlay for a investment. Even if everything goes pear shaped in the next year or two i could still hold the property even if it was empty.
Do some market research on, I assume, strata offices for whatever location you are looking at. Then you might come up with a better answer.
Well your responses are short and to the point. Thanks for your imput. I think.
Commercial property has many categories broken down into sub categories and then divided into different locations.It is difficult to asssist you without knowing the important facts that relate to your particular property category.
The basic information you require is net market rents, current tenant demand, and investor yields for similar properties.
You need to do your own market research for this particular property category and find out the most important factors that relate to this particular market.
I note the property is vacant. A leased property will be easier to finance.
The basic information you require is net market rents, current tenant demand, and investor yields for similar properties.
You need to do your own market research for this particular property category and find out the most important factors that relate to this particular market.
I note the property is vacant. A leased property will be easier to finance.
