Strata Industrial Units

Does anyone have experience, good or bad, with these?

They strike me as a cheap way of entering commercial RE. But I would also imagine that they have a high tenant turnover and default rate. Is this true? Due to the cheaper lease would they relet quicker and have reduced vacany time? Also as the entry point is low, why wouldn't the business, if it was sound, buy the premises themselves?

As another option, what about buying several units in a row. It spreads the vacancy risk. Any thoughts?
 
Good book to read up on this is "The Property Investor's Handbook" by Graham J Airey. He writes about these sort of commercial properties as being good for CF in terms of the length of the lease. Quite often you can get a lease signed for 3 +3 years or even 5 +5 years. This means that one has a guaranteed tenant for a much longer period (potentially) than on a residential property. Ofcourse this all depends on the type of business the tenant is running. Sometimes they are only starting off in business and can't afford to buy, instead their cash is going back into developing or expanding their business.
 
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