Retail Yields - Brisbane

Hello,

Could anyone provide information on current retail yields in Brisbane inner city area (not CBD), would be great if can break down into segments. Please indicate if its net or gross yields (i'm new to forum).

Thanks

 

Thanks Y-man. But I'm looking more specifically in e.g. West End, New Farm, Teneriffe, Fortitude Valley etc. Sorry should have been clearer.

 

What research have you done?

Are you looking for confirmation or a silver spoon feed?

pinkboy

 

I'm gauging the market for these areas. I'm new, want to get into the market in these areas for a balance of capital growth + yield

 

what are good sources of market research?

 

This is the way I work it out,
expected rent x 52 or 48 weeks for a buffer divided by the purchase price plus 5k for ongoing expenses x 100
EG,
rent 400 x 48 weeks =19200
Purchase price $450000 + 5000= 455000
19200 / 455000 X 100= 4.2%

 

Many of the commercial property management companies have a research arm eg. Urbis

 

Well it is going to depend, but I can tell you going to inner CBD areas is not for yield.

I see no point in looking at averaged data for yield either, you have to look at the specific property. Ok if you want to get rough idea like, Bris should be better than Syd or Mel

 

@dabbler, whats avg yield for Brisbane inner city retail?

 

@Scott No Mates is commercial property manager worth it? what services do they actually offer apart from collecting rent?

 

@Phil Usher - It depends on who you use and the services that they're engaged to provide.

Property management is just one aspect.

Asset management, facilities management, budgeting, lease management, lease negotiations are all additional services.

If you use a general residential agent, they have little idea. I've dealt with agents who have said that doing a cpi review was just too difficult.

 

Nevermind, I see you meant commercial property. This info is available for resi, but I disregard it totally, means nothing in a large generic sample.

Same would apply though for other types, you would need to look at each specific property. What good is it if I said say 10% but the place you were looking at worked out to be 6% ?