I am new to the commercial property investment side of things
there is a commercial site which is leased to red rooster robina with over 2000sqm going to auction
its in a great position,still 3 years left on lease with options (national tennant happy to stay)
as robina is one of the hotter areas in qld what sort of yields is it likely to attract?
there appears upside in rents after 3 years should this be forcast in price?
is this this commercial property a good first step?
ray white saleman claim good properties still achieving good prices but not sure
as i cant stand agents and its a difficult market…
hope someone can provide some thoughts
thankyouHi,
Sites of this kind with a good tenant usually attract strong bids from institutional buyers.
I would call the agent (and commercial agents in the area) to ask what yield similar properties have sold for.
That said, agents are telling me commercial yields have softened over the past 6 months, but that there is not the volume of sales to confirm it.
At a guess, I would expect a 6 to 7% yield.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
steveknobel26026 why do you feel the need to cross post 4 times in different forums, and twice in one of them, with the same post………………………..
I'd be surprised if you could pick it up any cheaper than 3-4% on net yield. Many of these sites are hotly contested – do your research. Find some similar sites in Robina ie same zoning and similar size to get a feel for price, check whether they sold vp or with a lease on foot. Then add for the quality of the lease covenant. What sort of rent review is due upon exercise of the option – fixed, cpi or market?
Is the usage a conforming use? ie will it be priced as a development site with a dampener as the tenant will in all likelihood exercise their option and lock the site up for a number of years?
yarpos wrote:steveknobel26026 why do you feel the need to cross post 4 times in different forums, and twice in one of them, with the same post…my apologies its my first time i thought by asking the same question in different boxes might
get more responses sorry for inconvenience ill try and delete them……………………..SteveMcKnight wrote:Hi,Sites of this kind with a good tenant usually attract strong bids from institutional buyers.
I would call the agent (and commercial agents in the area) to ask what yield similar properties have sold for.
That said, agents are telling me commercial yields have softened over the past 6 months, but that there is not the volume of sales to confirm it.
At a guess, I would expect a 6 to 7% yield.
thanks steve what an honour love your site and your knowledge it was my pleasure
how did the Assessor come to assess the garage as "commercial". They would have had to have some reason. Did you ever claim the garage as a deduction on your income taxes for business purposes. We need more info from you. The Assessor wouldn't just out of the blue claim a garage as commercial, unless they had a good reason……
Commercial property……!!?what qualifies a property as commercial..?
the taxes for our entire property is only $550 but now they want an extra $330 for the 'commercial property' (our 1 car garage) my husband is a self employed roofer and keeps the tools in the garage but does that qualify it as 'commercial property' ……!?Is it zoned as commercial or residential.
If residential and your using the garage for storage they shouldn't be able to charge extra.
That would be like having a house an using the spare bedroom as a home office
You must be logged in to reply to this topic. If you don't have an account, you can register here.
