Commercial, Industrial & Shophouse Property
For business use or investment, the numbers need to make sense.
Whether you are looking at a commercial unit, industrial property or conservation shophouse, I can help you asses the property, understand the numbers and consider the potential risk before making a decision.
Commercial. ✺ Industrial ✺ Conservation Shophouses
Commercial Property Is Different
Buying a commercial or industrial property is different from buying a home.
Beyond the purchase price, there are other things we should consider.
Tenure
Freehold, 999-years or remaining lease.
Existing Rental
Current rental, lease expiry, tenant profile and rental sustainability.
Rental Yield
What return are you actually getting based on the purchase price?
Property Use
What businesses or activities can legally operate from the premises?
GST
Does GST apply to the purchase and how does that affect your numbers?
Financing
How much financing maybe available and what cash commitment is required?
Exit Potential
Who is likely to buy or rent the property from you in future?
A high rental yield does not necessarily make a property a good investment.
What Type Of Property Are You Looking At?
Commercial
Office | Retail | Commercial Units
For own use or investment, we can look at the location, tenure, existing tenancy, rental potential, permitted use and overall numbers.
Industrial
B1 | B2 | Industrial Units
Industrial properties can have additional considerations such as permitted use, remaining lease, building specifications and eligibility requirements. Understanding these before committing is important.
Conservation Shophouse
Commercial & Mixed-Use Shophouses
Shophouses can be very different from one another. Tenure, conservation requirements, approved use, existing tenancy, location, land size and future potential can all affect the value of the property.
Looking For A Property For Investment?
1️⃣ Purchase Price
How does the asking price compare with the recent transactions and similar properties?
2️⃣ Rental Income
What is the current rent? When does the tenancy expire? Is the rental sustainable?
3️⃣ Gross Yield
What return does the existing rental produce based on the purchase price?
4️⃣ Holding Costs
Consider property tax, maintenance, financing costs and other expenses.
5️⃣Lease & Tenure
A lower-priced property may look attractive, but the remaining lease can affect financing, resale and long-term value.
6️⃣ Future Exit
If you decided to sell in 5 or 10 years, who is likely to be your buyer?
Looking At A Shophouse?
Shophouses are not all the same.
Two shophouses on nearby streets can have very different values depending on factors such as:
✔️ Location & Footfall
✔️ Tenure
✔️ Land & Built-Up Area
✔️ Conservation Status
✔️ Approved Use
✔️ Existing Tenancy
✔️ Rental Income
✔️ Condition of the Property
✔️ Future Rental & Resale Potential
The asking price is only the starting point.
I prefer to compare the property with relevant transactions, look at its existing income and understand what may support – or limit – its future value.
Buying A Property For Your Own Business?
If you are buying a commercial or industrial property for your own business, the priorities may be different from those of pure investor.
Whether your business can operate from the property.
▻ Location and accessibility.
▻ Space and layout requirements.
▻ Loading parking or operational requirements.
▻ Purchase and financing costs.
▻ Whether buying makes more sense than continuing to rent.
Sometimes owning your business make sense,
Sometimes continue to rent gives you more flexibility.
The number should help us decide.
Thinking Of Selling?
Before putting the property on the market, I can help you look at:
▻ Recent transactions
▻ Comparable asking prices
▻ Existing rental and tenancy
▻ Potential buyer profile
▻ Positioning and marketing strategy
▻ Negotiation and transaction process
The objective is not simply to put the property online.
It is to understand who is most likely to buy it and how the property should be positioned to that buyer.
How I Work
1️⃣ Understand Your Objective
Are you buying for investment, your own business, or looking to sell?
2️⃣ Look At The Property
We consider the location, tenure, use, tenancy and characteristic of the property.
3️⃣ Work Through The Numbers
Purchase price, rental income, financing and other costs.
4️⃣ Compare The Alternatives
What else can you buy at a similar price? How do the numbers compare?
5️⃣ You Decide
I give you my assessment and concerns. The final decision is yours.
