Care to share your commercial holdings?

I was reading how the stock price in Cab Charge and the TV networks are being hammered due to disruption from up an comers like Uber and Netflix. I also remember some discussion on here about car parks and the impact driver-less cars might have on prices for inner city car spots.

I wonder the potential for creative disruption in the fuel business with the rise of self driving electric cars?

I would bet (not a large amount) that in 30 years petrol stations may not be needed at all.

 

Functional obsolescence.

 

Good question... another development opportunity requiring cash has appeared, the returns look to be much higher.

 

Interesting re; the petrol stations as high risk. The Shahin family have done exceptionally well building their business model by buying up petrol stations and turning them into convenience hubs - earning them a healthy place in the BRW rich list from their humble beginnings.

 

Maybe not high risk now. The majority of people will be driving petrol cars for a long time yet.

But just like Murdoch who did well out of newspapers, technological disruption is always a risk... Not that he is currently doing poorly, but you see my point.

 

Probably a higher yield usage site, with development/subdivision potential

 

my cousin and her hubby own and run the Caltex in Sunset Beach.

if you get stuck with a franchise system it can work against you, especially if you're one of those business owners that likes to exploit niches in markets.

margins on fuel are pretty dismal. it's not a market would be keen to get into - but that said, if you can remain independent then with a serious amount of hard work it can pay big dividends....

...and anything worthwhile generally requires work.

 

I will be a large amount. Some may remain as charger stations, but most will end up as housing IMO.

 

Housing sites with massive site contamination clean up costs.

 

Yep.

 

Cap the contamination, problem goes away (in 100-200 years)

 

Have you seen the sales of Tesla's latest release? Electric cars are the future

 

Precisely!

 

Fuel stations powered by the solar panels on the rooftops.....don't no that the government would be interested in this...unless of course they passed a bill charging us for the use of the sun

 

I have 4 commercial properties on the Sunshine coast. Averaged return is 8.3% capped and all tenants are of a medical nature. For me it's largely about the tenant and given we are an aging population I think it's extremely sustainable. In the millions bracket you could easily negotiate 11% returns

 

That is one fanastic deal!

 

I bought one in inner west Sydney in 2014, for less than 1.2M. Since then we've had multiple offers to buy it much higher than that, but we use the property ourselves as well, and stock levels in that area are incredibly low.

Funnily enough next door was for sale for even less, and got sold for around 1M.

The one we bought was a really great investment, should have bought next door as well haha.

It just seems to be that is very difficult to find good commercial properties at this time anywhere in Australia, due to there being fierce competition among buyers in a seller's market, or maybe I am not looking hard enough..

 

What are your current commercial holdings like? I think perhaps it would be worth mixing it up.

 

This is our first commercial deal in Atlanta/USA, we are currently looking at viable options in terms of what we can build on this site that will give us the best returns/yields. Currently land is rented as a car park. One of the options is to build boutique hotel.

Commercial Land Purchase - Atlanta, USA

We have also placed an offer on another commercial property with 8.5% yields, on 3 acres of land, we can greatly improve the returns if we utilise the land and build more factory units/apartments. We have yet to settle on this one as we are still negotiating price.

 

@Be Developer - were you on the ground in the US to do the deal or using sites like landwatch.com?