When doing DD for the purchase of a commercial property how do you find out comparable sales, avg purchase price per sqm, and average rental per sqm for comparable properties. I find that the pool for commercials is much smaller than residential so finding past evidence from websites like realcommercial to base research on is limited.
If you are unsure where to start, engage a valuer – they have the resources to research sales (via RP Data etc), undertake searches at the LTO for registered leases, connections with agents/managers/owners etc. The quality of the report, the detail of the information provided are indispensible providing that they have been briefed correctly. This info may not come cheaply, I have been quoted $12K+ to get a market rent (I am particular about who I use) but stuck with a very tight timeframe (reflected in the val price).
As for free information – virtually non-existant, you will have to develop networks with leasing agents or do the hard yards yourself talking to tenants (discarding their bs) or undertaking searches ($) – not all leases are registered so it is not a simple task for the unannointed.
whats the LTO and if its a department can anybody just walk in and enquire about registered lease info, like what is possible with your local council town planners.
LTO – Land Titles Office (http://www.lands.nsw.gov.au) if you are in nsw.
You should be able to do most of your searches online (depending upon your state – eg not victoria).
You will probably need to get one of the online search companies to do the searching for you – they do have a phone service (I used to use Lawpoint but not sure if they are still around) – it will be hit and miss to get lease info as there is no compulsion to register leases, hence using a valuer to do the legwork.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
