Govt-leased and petrol stations

Discussion in 'Commercial Property' started by Mlee17, 29th Jun, 2020.

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  1. Mlee17

    Mlee17 Well-Known Member

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    Hello propertychat family

    I am just wondering what is everyone's experience with govt-leased properties and petrol stations.

    Are they as risk-free as people make them out to be?

    What should one be looking at when considering these properties as part of portfolio?

    Thank you.
     
  2. Beano

    Beano Well-Known Member

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    Location:
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    Market rental
    Tenant improvements (paid by tenant)
    Clearing the site on departure
    Length of lease
    Strong tenant
    Good location
    Wide frontage
     
  3. Mlee17

    Mlee17 Well-Known Member

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    Are there any websites that can help with performing DD on the said- criterias?

    I find that commercial properties does not have much history compared to residential.
     
  4. Beano

    Beano Well-Known Member

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  5. The Y-man

    The Y-man Moderator Staff Member

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    I'm going to stay clear of petrol stations until I figure which way cars and trucks are going....

    The Y-man
     
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  6. Mlee17

    Mlee17 Well-Known Member

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    what about govt-leased like Centrelink? Seems to be recession-proof. If any, recession will make it more demand?
     
  7. Mark F

    Mark F Well-Known Member

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    The cost to remediate soil contamination when a petrol station is closed down can be a killer - think 6 figures.
     
  8. The Y-man

    The Y-man Moderator Staff Member

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    I only hold them "arm's length" as part of prop trusts but I must say they are certainly giving me much needed income during the pandemic!!

    The Y-man
     
  9. Mlee17

    Mlee17 Well-Known Member

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    are you able to share which reit is this? do they own majority of govt leased assets?
     
  10. The Y-man

    The Y-man Moderator Staff Member

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    Property Portfolio

    The Y-man
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Get an understanding of the relevant government budget (state or federal) - this will provide an insight as to where funds will be directed (or withdrawn) over the next term and beyond.

    Some things are left of centre eg: creation of Service First in NSW (amalgamation of several agencies for their customer facing activities - RMS, Fair Trading etc), reallocation of departments (merger of Roads & Maritime and later Transport for NSW), Creation of Property NSW etc.
     

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