When property investors look at commercial real estate lease agreements you will come across two common types. Gross & Net leases. This article compares these two types when leasing commercial premises.
In 2009 the NSW State government introduced new affordable rental housing policy. This State Environment Planning Policy – Affordable Rental Housing 2009 (ARHSEPP) was formulated to increased supply and affordability for rental & social housing in New South Wales. This has, in turn, led to increased demand and higher property values for boarding houses.
Navigating the complex landscape of market risks in a property with varying lease durations can be daunting. This is where the concept of Weighted Average Lease Expiry comes into play. Essentially, WALE represents the calculated average period until the expiration of all leases within a specific property. This numerical value serves as a tool to evaluate better the current and future income potential derived from the property.
When investing in commercial property, you usually come across
two important terms: freehold and leasehold. When we refer to freehold, which refers to owning the whole property, this includes the building on the land. Leasehold is when you only have the rights to a particular property for a certain period. This is the time allocated in the contract of lease.
Commercial real estate outgoings can be described as the expenses incurred in the general maintenance and running of a commercial building. Depending on the negotiation of the lease agreement, most If not all of these outgoings can be recoverable in commercial leases from commercial tenants within the financial year.
Owning or buying a property can be very complicated in a changing market. Right property management policies and goals should always be monitored. So what are your plans and goals for the next year? Do you have the right property strategies? What are your options?
Generally, cap rates fluctuate with the going bank interest rates. Investors are always looking at getting the best possible returns.
There are many factors to consider for the real estate investor when comparing Commercial and residential real estate investing.
The question is – how do you price your commercial investment property for the current property market. Having a realistic price on your property as soon as it hits the market is more likely to attract immediate interest. Therefore, when a new property listing comes on the market, there is often curiosity and excitement in the air when priced right.