Commercial

P

path

Registered User
Messages
40
Just wondering about Commercial Property. Commercial Sold recently in Co.Kerry 2.24m rental income 70k 3.1% yield or over 30 years rental income. Is that the same in all county towns or is there reality in any town
 
path said:
Just wondering about Commercial Property. Commercial Sold recently in Co.Kerry 2.24m rental income 70k 3.1% yield or over 30 years rental income. Is that the same in all county towns or is there reality in any town
Click to expand...


Seems a very low yield, is the tenant a blue chip (bank, national retailer).

The IPD/SCS Commercial Property Index (see link); is a useful (if fairly general) guide to the performance of the commercial investment market in Ireland.
[broken link removed]
 
No Blue chip tenant . A tourist shop just finished its lease and the location would be zone b
 
path said:
No Blue chip tenant . A tourist shop just finished its lease and the location would be zone b
Click to expand...

If the property is being sold with vacant possession at an estimated rental yield of 3.1% its very strong money. It could be that the buyer has a blue chip tenant lined up? or maybe there's some development potential? or it might be another manifestation of weak hands at the tiller?
 
So commercial is more secure than rental even at 30 times rental income
 
path said:
So commercial is more secure than rental even at 30 times rental income
Click to expand...

Commercial property investment is about the return that can be earned relative to other investments. The ease of management is one of the principle attractions, the tenant usually paying for the maintenance, repair and insurance of the property. Most commercial leases will also have periodic upward only rent reviews meaning that the rental stream is not exposed to the vagaries of rent deflation(as seen in the residential sector over the past few years). At the moment I think the market is being driven by investors speculating on the continuation of rapid capital growth, rental growth (in real terms) is falling.
 
So over a long term money is safer in commercial even though you have to deal with leases etc
 
path said:
So over a long term money is safer in commercial even though you have to deal with leases etc
Click to expand...

As the man said it depends. And the depends bit is about you doing a hundred and odd hours of research.
 
You must log in or register to reply here.
Back
Top