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Moorabbin (Vic) Warehouses

Discussion in 'Commercial Property' started by willister, 9th Mar, 2016.

  1. willister

    willister Member

    Joined:
    1st Sep, 2015
    Posts:
    7
    Location:
    Sydney
    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.
     
  2. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,166
    Location:
    Adelaide, SA
    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?
     
  3. Carrytrader

    Carrytrader Active Member

    Joined:
    19th Mar, 2016
    Posts:
    34
    Location:
    Sydney
    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.
     
  4. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    977
    Location:
    Melbourne
    Theres a few business parks going up in moorabbin with places starting from around $290k. I'm not sure of yields though.