Hi experts, Agent presents a deal of 4 strata titled office suites with a scope for a lease back structure & terms to be negotiated with current tenant/owner, ie currently there is no lease in place yet so everything is up for negotiation. Owner got rent appraisal (not full valuation to the best of my knowledge) and intends to use that as the basis for the price negotiation. Since all suites are already strata titled, what other possible value add could be achieved? Which structure of lease may achieve better overall value? 1) one single lease for all suite 2) four lease contracts negotiated one for each? Thanks!!
Anyone knows if valuers estimate improved value of additional capital works based on cap rate or actual invoiced amount? I am thinking about essential services fittings to be improved and updated for example and some tired carpets to be replaced. Also, do common area capital works instructed by OC also value add to the stratas?
@FXD - Value is based on the range of cap rates - $2,000 of carpet or required essential services upgrades aren't going to add $5,000 to a property but it may mean that you suffer less downtime due to vacancies.
