How to build a commercial property

Discussion in 'Commercial Property' started by samiam, 23rd Jun, 2021.

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  1. samiam

    samiam Well-Known Member

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    It is a bit hypothetical at the moment as I haven’t done enough research into this yet.
    We got a property in regional NSW - CB4, mixed residential zone, currently an old house on it. Ideally we want a couple of commercial units downstairs and residential units upstairs. Anyone here had built a commercial property before? If so, what’s your experience?
    our lot is in “flood zone” so it makes more sense that downstairs is made not for residential purpose. Having said that commercial in the area is not very thriving but residential has very low vacancy rate.
    We could continue to land bank for another 5 years while paying down debts…
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Taller ground floor to enable the tenants to put their fixtures off the ground without being impacted by low ceiling heights.
     
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  3. samiam

    samiam Well-Known Member

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    Any recommendations for builders? Or get everything sorted first and find a builder?
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Try the local builders, due to the small nature of the towns builders won't necessarily specialise in a particular type of construction. Your designer should be able to guide you if using a local.
     
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  5. Foxy Moron

    Foxy Moron Well-Known Member

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    Interesting opportunity.
    Before you engage builders etc I'd wear out some shoe leather in the nearby business district of that town / city and take note of the types of premises that lawyers / dentists / physios / engineers etc work out of now. Do they have ritzy new premises or is there a tendency to occupy converted cottages etc ? You will probably find in regional areas the types of commercial tenants you might be hoping to attract will likely want to own their own premises (via smsf) rather than lease ritzy new space from a developer. If so, adapt your strategy accordingly. So do some DD on these things and then go see a commercial agent and local town planner to see what options you have. I'm hoping your position is handy to the cbd ?
    One option that should not be overlooked is getting a DA to convert (rather than knockdown) that old cottage into a nice office for 3-4 persons that complies with code, with good parking etc and offer for sale either at DA stage or on completion. I'd be very surprised if that would not be well received by the market and might get you the best bang for buck if the facade can come up okay.
    The flood zone part concerns me. If the house is on stumps now there's a reason for it, so work with the hand you have been dealt perhaps.
     
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  6. samiam

    samiam Well-Known Member

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    Thank you very much for the comprehensive reply
    It is actually a very good valid point to see what the businesses are and work it out before everything else.
    I am hoping to build a new building and hold it for cash flow but definitely need a feasibility check.
    It is in town centre and a rather big block with a wide frontage so another option is retain the old house (which is thankfully at one side), subdivide and build a dual occupancy on the other side. Flood compliance will be a bit of pain but it is what it is I guess.
     
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  7. samiam

    samiam Well-Known Member

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    I might page @Beano for his wisdom :)