CIP Improvements

Hi All

I am going to put myself out there and post a property I purchased last year with the hope that you can help me with some ideas.

The property I purchased shares a tenant with the property abutting mine as they utilise both spaces. Each property is quite similar and command similar rents however the tenant is shifting out in February 2021 which means myself and the owner next door will be competing for a tenant with similar properties.

I believe my property is slightly superior as the under croft car park has been converted to an additional 25sqm NLA at the expense of 3 car spots. I have 7 and my neighbour has 10. My neighbour also has a very large well inside the premises that will likely need to be filled.

We share a dividing block wall that the existing tenant is expected to fill.

I would like to make some improvements to my property in order to make it a more attractive proposition when it comes time to market it and find a new tenant. My current ideas are to repaint the office spaces and maybe maybe fit some new (suspended) ceiling tiles if the expense is not too great. I was hoping this would give it a fresher look. Beyond these 2 improvements do any of you see any other opportunities to ensure my property is the more desirable of the 2 soon to be vacant properties. (Note the portable office is not likely to remain.)

My Purchase: 8 Damian Court, Dandenong.
My Neighbour: 7 Damian Court, Dandenong.

Some other ideas I had were:

- New High Bay Lights
- New Blinds

 

The high bay lighting would be first on my list, as the property next door currently has better lighting, you may be eligible for gov grants to install LED also.
Ceiling tiles is a yes also.
Otherwise it really depends on the incoming tenant, they could paint a different colour or do a whole fit out to suit their product or match the company colour.
@Scott No Mates @Ace in the Hole may have better suggestions

 

LED highbays
Roller blinds
Replace skylights (they appear dark & cloudy)
Replace exit & emergency lights (to current requirements)

Tenant make good:
Reapply epoxy paint to floor (if this is the existing finish) & remove all markings
Removal of all tenant's fitout including plasterboard walls
Repaint walls (should be under the lease)
Replace carpets
Copy of latest service dockets for air cond & fire services

 

Thanks for these ideas! A quick review my lease suggests some of those the make good items like carpet, ceiling tiles and paint are an obligation. The premises was however leased from a parent company to an child company with no bond which may make it difficult to enforce!

 

Director's guarantee?

A meeting a month or two out with the tenant to review their make good obligations & confirm the expectations never goes astray.

 

I was involved with a business that went through rapid growth. We ended up buying soon after expanding across three rented units in a line adding two units every few months before we outgrew the whole site. In prep for bailout we found the owner had a prospect who was looking for 3 units in a line which wasnt available anywhere. They were excited we wanted to exit as they could up the rent and for a four+four lease. And we had a new office fitout to make good...The new tenant needed it. We sold what we would have had to demo for $60K. And sold them our racking and more. Office was all network cabled, phone cables plus.

We were so happy we raised it early on. win-win-win