We have a light industrial half acre block with a 60 foot x 30 foot x 15 foot high shed. It has an office, kitchen, toilet and shower area.
Should we build more small sheds on this block or build another large shed and just rent to a single tennant?
Regards,
JohnIt depends where your property is and what type of property tenants are looking for.
Over the years we have found that 500sq mt warehouse/offices let out well to substatial tenants. The smaller properties are usually leased by smaller “mum and dad” businesses
Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auHi Sosau,
We have been leasing out 6 industrial sheds of varying sizes on a 1-1/2 acre block over the past 3 months or so.
Our mix in m2 are { 90 / 110 / 255 / 365 / 215 / 255 }.
What we’ve found is the little 100m2 sheds lease out very quickly. We wish we had 10 of these, they would have all gone. The downside to these, as Michael pointed out, are they attract little M&D type operations, where they bleat about not being able to afford the rent. They are also more reluctant to sign burdensome lease contracts. They all wany short term, no paperwork, cash under the counter type arrangements – which we find detrimental to the relationship between Lessor and Lessee.
The bigger units attract a sharper tenant usually, where outgoings are no problem.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
By keeping them under 300m2 you can save on having to provide emergency lighting and by keeping under 500m2 say 499m2 you will not have to provide fire hydrant and hose reels which have ongoing maintanance costs.
Hi,
I would suggest talking to a few agents to see what demand there is for the various sizes.
hrm
Hi,
Thank you for all the replies so far. Your information has been valuable. Although we are not new to realestate development we certainly do not know it all. I think it is great to have a forum like this.
Cheers for now,
John
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