Purchasing a commercial property to be leased to a bank

Discussion in 'Commercial Property' started by Mlee17, 9th Jul, 2020.

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  1. Mlee17

    Mlee17 Well-Known Member

    Joined:
    9th Feb, 2019
    Posts:
    349
    Location:
    Southbank, VIC, 3006
    Hello all.

    What should be considered before purchasing a commercial property to be leased to a bank in a regional town? E.g. population, price, number of banks in area etc?

    What are the pros and cons buying this type of properties?

    What is the expected yield?

    Thanks.
     
    Mlee17, 9th Jul, 2020
    #1
  2. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,528
    Location:
    Melbourne
    Have a read of this thread:
    Commercial property yield

    When you say "to be leased" - how long is the lease for?

    The Y-man
     
    The Y-man, 9th Jul, 2020
    #2
  3. Mlee17

    Mlee17 Well-Known Member

    Joined:
    9th Feb, 2019
    Posts:
    349
    Location:
    Southbank, VIC, 3006
    The lease will go on for 4.5 more years with an option to renew for 5 more years
     
    Mlee17, 9th Jul, 2020
    #3