Which one is worth more?

Discussion in 'Commercial Property' started by Younginvestor2, 12th Jan, 2020.

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  1. Younginvestor2

    Younginvestor2 Well-Known Member

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    26th Dec, 2015
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    Location:
    Sydney
    Ok. I’ve got 2 shops I can choose from to buy and lease out. Both shops are in a block of 6, both leases plus renewal options are about the same, both rent per sq of lettable area income are about the same, both businesses been there for more than 10 years. Both buildings and fit outs are similar.
    Behind these block of 6 is a big car park shared by these 6 businesses. Both shops get 2 car park spaces each.

    Anyway on the title, shop 1 land size is 240 m sq, building size is 120 m sq.
    Shop 2 land size is 200 m sq, building size is 160 m sq.

    Which of these is better?
     
  2. alicudi

    alicudi Well-Known Member

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    18th Jun, 2015
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    Location:
    Melbourne, Australia
    Age of the buildings the same?, Exposure of both shops identical?, Which has the higher quality tenant?, Does one of the shops have a business that may thrive in many years to come and the other shop have a tenant that is operating a business in a dying industry? Does one shop have a commercial fitout for something like a restaurant that you can on-sell should the tenant walk out and the other only have a $2 shop with no fitout to on sell?

    Generally speaking and with things been equal, shop 2 with an extra 40sqm of retail building space could achieve higher rent than shop 1 come time to lease out again.

    Feel free to post the 2 properties up so we can comment for you.
     
    craigc and Beano like this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
    Sydney or NSW or Australia
    • What is the zoning for each?
    • Does it differ in any material way?
    • FSR?
    • Height restrictions?
    • Will the above two impact on any underutilised capacity but require more parking?
    • Are they in a stand alone group of shops or in a strip?
    • Will the group become outdated by newer developments? eg functionally obsolescent
    • What are the street parking restrictions?
    • How is the unbuilt-upon land utilised? Can it be used?
     
  4. Omnidragon

    Omnidragon Well-Known Member

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    Victoria
    Send the addresses and we'll have a look
     
  5. croseks

    croseks Well-Known Member

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    Melbourne