Hi, We just sold off our IP in Vic and am looking at investing into warehouses in Moorabbin Vic. We have about $400K in hand. We own (and mostly paid off) warehouse in Sunshine Vic, but now looking at Moorabbin. A year ago we did some searching for 800-1,000m2 warehouses and they were around the $900K mark, looking at it now, they all seem to be 1mil+, bit too exxy or what? Suprisingly during our scant research though, many seem to be rented out around the $70K or so mark. Thoughts? Thanks.
A few things: Has the per sqm leasing rate significantly increased? current vacancies for like stock in the area? ~7% yield isn't that bad - the market has strengthened quite a bit in the last few years, compressing yields and cap values rising. What draws you to Moorabbin compared to anywhere else?
Also important to make sure the credit of the tenant and a decent period in the lease. At 7% yield at that size can be reasonable if there is a decent lease with a good tenant covenant.
Theres a few business parks going up in moorabbin with places starting from around $290k. I'm not sure of yields though.
