Commercial Property Development - Australia & New Zealand

Anyone had experience developing commercial property such as Medical Centre, Shopping Plaza & Industrial Units, etc.

If so, what margin on cost are you expecting?
What is your target areas with potential?
How much equity have you had to get into this type of development?

I have both commercial and residential as investment with upside but have yet to take the leap to full commercial property development.

Any feedback would be greatly appreciated.

 

Your biggest issue is going to be finance - unless you have specific development experience then lenders will not lender regardless of how strong you are as a project sponsor or the GRV position.

By specific I mean if you are looking to build a medical centre then you need to demonstrate that you have previously built medical centres (other commercial buildings won't satisfy their experience prerequisite.

 

Not just runs on the board but pre-committed space as well ie locked in a medical centre, physio, chemist, radiologist, pathologist & other specialists.

 

I’m also interested in this. Would love to do a small industrial development one day.
Anyone with experience in this?
How Much per sqm is it to develop light industrial in the current market?

 

DYOR - linky

 

Allow for the container dropoff , roadways, paths , yard , carparks and common areas too.
Allow sufficient power , water and other service to the site too.
Allow higher MPa for areas where trucks turn and forklifts operate.
Install an embedded network on the site