I am looking to buy a small industrial unit/office, around about the 150 sq m size, on the north side of Brisbane for my business and was wondering if anyone could offer any opinion on what sort of price per sq meter I should expect to pay in the current market. I have never bought commercial property before so am fairly clueless about the market for this stuff. I am looking at these new concrete tilt panel type units with a roller door and separate entrance into the office area. When I look at what's advertised on the web there is very little indication of prices, it mostly seems to be 'by negotiation' . From the prices I have been able to see there seems to be a huge variation in cost per square meter, ranging from $1600 to $4000 for fairly similar units. I am looking at something that has had some sort of fit out already, rather than a big empty concrete box.
Thanks a lot for all opinions
Work backwards – check out the rentals for similar properties and estimate yields (probably around 8-10% net), then divide annual net rent by net yields to approximate the sales price.
Agreed with Scott. Commercial is all yield base, different asset classes and different tenants vary it slightly but it is still only by a few percent. Although have seen some long term govt tenanted properties go for very low yields.
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