long settlement conditional upon (less) vacancies, industrial qld

Discussion in 'Commercial Property' started by Property Guts, 12th Aug, 2018.

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  1. Property Guts

    Property Guts Well-Known Member

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    Seeking to run this deal past some experts on property chat and get your feedback.
    I am negotiating to purchase an industrial property in a regional Qld town, that has a slowwwww moving buyers market. The property is concrete tilt up, under 10 years old, multi-tenant, but with only 25% of units leased, been on the market for 2+ years. I am offering a long settlement, 6 months, but conditional upon, 75% of units being leased at settlement, and me "assisting" in the marketing (and paying for such) to reach that goal. I did a similar deal in another qld regional earlier in the year, and it worked fine. But this time... getting some push-back as the "offer is too complicated".
    Does that offer seem reasonable to you?
    If you were a seller, considering all you would lose would be time, would you take that offer?
    Any real estate agents want to add their perspective?
     
  2. thatbum

    thatbum Well-Known Member

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    Does it really matter what the rest of us think if the actual seller you're dealing with thinks its too complicated?

    Is your strategy to talk them around or something?
     
    Property Guts likes this.
  3. Handyandy

    Handyandy Well-Known Member

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    What are you offering as your buy price? Is the buy price you are offering based on the return at 25% occupancy or is your price at a return based on 75% occupancy?

    Seller has better chance of selling and better price with a 75% occupancy.
     
    Property Guts likes this.
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Simplify the deal - first right of refusal.
     
    balwoges likes this.
  5. Property Guts

    Property Guts Well-Known Member

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    thank you - I would agree and say yes, to all of the above.
     
  6. Property Guts

    Property Guts Well-Known Member

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    nahh, the negotiations have stalled.
    and mining towns, nahh, over them.
     

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