Vacant Industrial sites

Discussion in 'Commercial Property' started by Cousinit, 20th Oct, 2021.

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  1. Cousinit

    Cousinit Well-Known Member

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    What are some of the uses for a vacant site with secured fencing and a large hardstand area but no buildings at all. Site is 1.7Ha in area. When I mention uses I'm talking about potential tenancies such as for container storage or truck parking, earth moving equipment etc. Just looking for ideas.
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Builder's yard - they supply a site shed &/or amenities block (if required) & use for storage of scaffolding, formwork, building materials etc

    Bus parking/depot eg for private schools

    Garbage truck parking

    Nuclear waste dump

    Ground lease permitting tenant to erect permanent structures aka @Beano

    Community gardens (all raised beds individually leased)

    Solar farm

    Recycling depot

    Wreckers yard

    Rocket launch pad

    Plant nursery
     
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  3. Beano

    Beano Well-Known Member

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    They can put a portable office/workshop onsite too.
     
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  4. Cousinit

    Cousinit Well-Known Member

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    Thanks for the ideas.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I forgot one other use.

    Hanger & display facility for Wonder Woman's invisible jet. :D
     
  6. sanj

    sanj Well-Known Member Premium Member

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    Depending on location I've also seen similar sites being used for removalist truck depots or storage of long term storage containers, which is a pretty fast growing sector at the moment eg Mobile Self Storage | Store At Home or Onsite | PODS® Australia

    I'm referring to the self pack pods/containers that are then either stored on site or at the pod companies own warehouse. Obviously with insurance and safety needs an empty industrial site won't be suitable for storing filled pods but I'd imagine there would be companies needing place to store the empty ones prior to be rented out at a cheaper rate than they're potentially having to pay for presentable brand new storage premises where the full containers are being kept safe etc.
     
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  7. Cousinit

    Cousinit Well-Known Member

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    Desperate shortage of storage options around here. There is a block in the same estate with about 20 shipping containers for this very purpose and they are all rented.

    I got my block rented to wind farm developers so it's full of engineering hardware and earth moving machinery now. Amazing what they can fit in there.
     
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Vacant land doesnt attract much rent. Its like tradies agistment. Councils will also be heavy handed if there isnt approval. They see such sites akin to dumping and eyesores incl containers. Scaffolders and civil contractors often have need for large sites with 24/7 access if its fenced and secure. Things like PVC pipe, plant items, cable and the like take up space.
     
  9. Cousinit

    Cousinit Well-Known Member

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    How do you define much rent?

    I'm happy enough with my lease and it's a whole lot more than having it sitting vacant. Also, the tenant has put down about 30k worth of improvements which will most likely be left behind in the form of concrete and gravel. I have had discussions with council and they are happy with the current use. I've had the block since 2008 and this is my second tenant after having it vacant for about 18 months, which wasn't ideal.

    I will look to develop the site in the future, but not yet!
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Hardstand can be $20-30/m² if it's fenced & has access. So a 1000m² vacant block may give you $20k+ vs say $120/m² with a building.
     
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  11. Mark@Inverell

    Mark@Inverell Well-Known Member

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    Late response. ..I saw recently a Mobil above ground Truck refuelling set up. As in just a hard stand turning circle for road trains, and some large fuel tanks. Card operated, no amenities, no anything else. Mobile just plonked it down on a 7yr lease at 8.25 net yield. Underground power was already on site though. Roma QLD.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    @Mark@Inverell - Contamination - who's responsible for site remediation & removal of hydrocarbons, toxins, other pollutants etc?
     
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  13. Mark@Inverell

    Mark@Inverell Well-Known Member

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    No idea, I wasn't a potential buyer so didn't sight the lease. It would want to be them, hard to imagine no truck driver ever spilt some diesel.
     
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  14. Cousinit

    Cousinit Well-Known Member

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    Yes I have seen these. If they are well set up with appropriate bunding then less likely to contaminate.
     
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  15. Cousinit

    Cousinit Well-Known Member

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    The last couple of years my site has been used primarily for storage of earthmoving machinery and heavy industrial machinery. Owned for 16 years now.
     
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  16. Beano

    Beano Well-Known Member

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    Don't tell @Cousinit but Wonder Woman has been parking her invisible jet on the site and not paying rent :p
     
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  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Unfortunately I can't tell when she's there.
     
  18. Cousinit

    Cousinit Well-Known Member

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    A free rubbish dump can also be a popular use!
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

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    Council does like to ping owners for dumping even on their own land if they haven't sought approval ie DA.