Hi team, It's my first time looking into commercial property and I'm looking for some guidance. I need a new facility for myself (under 400^m2) so instead of leasing and running my business out of a leased premise, a strategy might be to acquire a piece of land, where I could build several warehouse buildings, keep one for myself and rent the others out. However my first step is to find a buyers agent or someone willing to help me ask the right questions to see if this is a smart idea and will stick...
Developing is a high risk strategy, will require at least 40% deposit + more for build costs. How do you intend to finance this project? What is your timeframe? Will you be leasing in the meantime? What is the availability of industrial zoned land in the area (do you need light/general or heavy industrial zone? How much is a suitable parcel of land in the area - how big a block for you need for 400m² unit + 1 or 2 other similar sized units and office component/parking/circulation space/landscaping etc (probably around 1700m² - 2000m² for 0.7 FSR) Use a calculator or cost guide like BMTQS to prepare a budget What is the demand for factory space? What rent can you achieve? What structure are you going to use to hold/develop eg Trust, SMSF, personal names, company etc need input from solicitor and accountant
Hi Matt, there is still quite a bit of empty almost new factory units around Wangara/Lansdale where it might be cheaper to buy something already built than to build your own.
Thanks Scott, I understand developing would be high risk. I guess I'm assessing my options starting from the ground up. @Westminster has a good point about looking at pre-existing buildings, this does sound much much easier than a full on construction project.
Perhaps look at an existing property with buildings and surplus land (earning a reasonable yield ) . Build on surplus land funded by the surplus income
Thanks guys, Does anyone have solid resources for analysing commercial property statistics? Ie $/squ meter, yield, zoning of areas etc..
All commercial valuers and agents that handle the areas you are interested in would have the evidence and adjustments. This evidence is "sold" by valuers , generally free from agents and friends. Note that this information is specific to that area and can date very quickly.
