VIC Retail space in new commercial precinct

Discussion in 'Property Analysis' started by kmrr, 11th Jul, 2019.

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  1. kmrr

    kmrr Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    45
    Location:
    Melbourne
    Hi All. I was following the sale of this little retail space in Cranbourne North

    6 Maksi Way, Cranbourne North VIC 3977 - Sold Retail Property | Commercial Real Estate

    The agent advised that it was passed in at auction after a bid of 410k with reserve of 490. It subsequently sold for 455k. + Stamps that is a net yield of just under 7%.

    3% annual rent increases
    4yr lease + 5yr option remaining.

    What are peoples opinions on buying new builds in new precincts like this and what is the general feel of precincts like this. I note that the area was anchored by a Woolies and BWS, flanked on 3/4 sides by large scale residential community developments and Farmland on the other.