In the past, while tossing up what to do with some commercial shops, I have considered splitting the units up into seperate offices,then renting them seperately.
Has anyone had any success with this or seen it done?
Was management tough?
We’ve got 70 yrs on planet earth,Lets make the most of every day!mathewc73Participant@mathewc73Join Date: 2005Post Count: 241
I too would be interested to hear peoples experience.
I currently have some unfitted suites but they are not renting. Im debating fitting them out nice and new for offices so they look attractive. However PMs are stating I should leave them as is and let the prospective tenant fitout as they please.
Hi Guys and Gals !
Just to bring up an old post here ,
Has anyone had any recent success with splitting commercial units?
I have found it really positive as it splits the costs down for x2 tenants .
Landlord can provide the fitout too which helps boost income and saves tenant costs.
Love to hear some stories !Steven ThomasParticipant@stevenrobertthomasJoin Date: 2014Post Count: 5
I (we, partnership) just sold three offices (one building) as a whole, we where considering strata-ing the units.
We found in the research we did that you get into a different market, owner occupier as the units are smaller and cheaper than the whole, rather than straight investors.
As it turns out an owner occupier bought it striped one of the units and moved in. And will enjoy an income from the other two units.
On your other point, re the fit out. In the lower end of the market I’ve found that a basic fit out will attact more small businesses as they tend not to have a budget for fit out. 100 or more square metres of office means lots of staff, big office, big costs and usually brings the type of business that has a fit out budget.
In the past I’ve “loaned” tenants money for their fit out that is amortized over the first period of the lease.
Provided a white cube, plastered walled (external) ceiling, some power points phone and sufficient lighting for office work.Howard MoralesParticipant@howardm673Join Date: 2015Post Count: 16