Here at Expedio we're buying and selling properties on a regular basis. Trial and error has taught us about industrial property, and the purchasing process. We realise that for many of the buyers that we work with, the decision to buy a property is a major one, and there are many questions and a big learning curve. While no two properties are the same, and therefore every deal is different, we do find ourselves answering the same basic questions on a regular basis. So we've put together some answers to get you started. If you have more questions, let us know. We'll be happy to help you out.
Expedio holds a portfolio of commercial / industrial property in South Auckland, which we lease to long term tenants. We are always looking for properties to add to our portfolio.
Other than the obvious restraints of the suitability of the property to your purpose, e.g. a building is no use for a major distribution centre if B-trains cannot access it, the two major constraints are Body corporate rules and zoning.
As with everything in this world - and property in particular - property is worth what someone will pay for it. It is essentially supply and demand that dictates the price - or simply , how much someone wants a property will determine how much they are prepared to pay. But in determining what price buyers are prepared to pay, they tend to look at "valuations", and valuations are determined by historical evidence of what other people have paid. Ultimately it comes down to a question of "other people are paying this, but what I am prepared to pay?"
Buying Industrial real estate has an established process. The process can be varied, and there are no rules saying that it must be done this way. However, knowing how the process normally works does make it much easier.
There are some basics that prospective tenants should know about leasing buildings. Although these are not rules that are cast in stone, they are the usual starting points with regards to leases.