All Topics / Help Needed! / Buying CBD Office Space

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  • Profile photo of diamonddaynediamonddayne
    Member
    @diamonddayne
    Join Date: 2004
    Post Count: 13
    March 15, 2004 - 9:16 am

    I am looking at purchasing CBD Office Space. Can anyone advise of the pitfalls?

    Purchase price $230,000/Rentals $16,000
    Lease Exp November 2006

    I know it’s not positively geared but seems a reasonable investment.

    What else do I need to know.

    Regards DD

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714
    March 15, 2004 - 1:13 pm

    Is current lease payment reflective of market rates?
    The real estate agents should give you an idea. Do your own research.

    Is there any work required on the building?

    Is it a separate building or strata titled offices?

    Condition of building? Services connected to building ie internet, facilities, lifts…Location of building, prestige/otherwise of building

    Quality of lessee is pivotal in successful commercial property. Can the property attract quality tenant??

    How long has the current tenant been there? Are there any options for either party in the contract??

    James

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663
    March 15, 2004 - 3:07 pm

    Hi there, I am looking at similar, decided to take a tip and currently reading “How investing in commerical property really works”by Martin Roth and Chris Lang.

    This is a great guide. Still need to do all the homework, but at least it helps with the pitfalls etc.
    Cheers

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