Purchasing a warehouse in Brisbane... Airport?

Discussion in 'Commercial Property' started by Beachsnow, 8th Dec, 2019.

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  1. Beachsnow

    Beachsnow Well-Known Member

    Joined:
    5th Sep, 2016
    Posts:
    72
    Location:
    Perth
    Hey Guys,

    I'm looking at warehouses in Brissy at the moment, have seen some good yields around the 8% mark at the Brissy airport. Any thoughts about purchasing there? Mansfield seems to have a few decent ones too. Any other suggestions for a first commerical purchase? Doesnt need to be a warehouse.
    Looking or a good mix of yield and growth? (who isn't??!)
     
  2. Scott O'Neill

    Scott O'Neill Active Member

    Joined:
    3rd Jun, 2016
    Posts:
    38
    Location:
    Sydney
    Hi there, We have a lot of experience in this area. The 99 year lease with the BAC is ok from a security point of view however bank lending is much harder. This is one of the reasons yields will be higher compared to surrounding non-leasehold suburbs in the area. You will also find that there is a higher cost per square meter that will either be covered by yourself when vacant or the tenant when occupied. This again is ok, but when you are looking at larger tenancies (over 300m2) it's a very large cost to account for. Vacancies can be longer but quality of tenant can often be better due to the specialised nature of the area. PM us for more info if you like.
     
  3. Beachsnow

    Beachsnow Well-Known Member

    Joined:
    5th Sep, 2016
    Posts:
    72
    Location:
    Perth
    Thanks @Scott O'Neill. Do you think capital growth would be lower as the BAC lease diminishes over time? ie. in 30years time would this investment be less attractive with only 47 years left on the lease or would this not be considered an issue?