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Donut

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Angcheek

Angcheek

Hypersonic
(edited)

Hers about retail ... now back to Commercial . 

 

Prices, rentals, occupancy rates for industrial space decline further in Q1 2016

A supply glut is likely to exert more downward pressure on occupancy rates, says JTC.

Edited by Angcheek
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Sunny

Sunny

Hypersonic

Hers about retail ... now back to Commercial .

Prices, rentals, occupancy rates for industrial space decline further in Q1 2016

A supply glut is likely to exert more downward pressure on occupancy rates, says JTC.

Those light industry lots rental quite badly hit

Many new lots space coming up down the road

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Mercury1

Mercury1

Turbocharged

The light industrial I have took about 3 years to hit decent occupancy, if I were to invest in light industrial again I prob go after those older ones with good supporting industries around.

 

Heng my development is favored by car dealers haha

 

 

Those light industry lots rental quite badly hit
Many new lots space coming up down the road

 

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Sunny

Sunny

Hypersonic
(edited)

The light industrial I have took about 3 years to hit decent occupancy, if I were to invest in light industrial again I prob go after those older ones with good supporting industries around.

 

Heng my development is favored by car dealers haha

The Pioneer centre @. soon Lee very packed n busy

Went there to get a workshop check door handle replacement cost

 

But Eco tech still lotsa vacant (sold but waiting for tenants)

Look see heard roof top has Swimming pool but no chiobu within compound

Good for business man keke

Ya... Edited by Sunny
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Angcheek

Angcheek

Hypersonic

The light industrial I have took about 3 years to hit decent occupancy, if I were to invest in light industrial again I prob go after those older ones with good supporting industries around.

 

Heng my development is favored by car dealers haha

 

 

meaning you sold off already ? 

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Mercury1

Mercury1

Turbocharged

Heh thanks but don't think I'll be looking for awhile though market still very frothy. Anyway those matured ones will be hard to find a vacant unit, most businesses there would have bought it long time back to run their biz.

 

Those got pool and what not usually to con investor's, developer would make it swee swee and tell investors can rent for high psf cause got pool can attract professional tenants, IT type businesses cause got lifestyle etc etc. But in reality there are guidelines to who can rent industrial and a number of professional businesses don't qualify. (My own industrial already kanna some tenants getting kicked out, plus I wonder how much these facilities are goonna cost the owners.).

 

A friend's relative developed one such estate, we were discussing why on earth would industrial center have a pool lol. Before we knew it the development was sold out. Joke was on us man :D

 

A lot of investors paid too much for industrial and ask for high rental to recoup and no one rents, That said at least Eco-tech is B2 industrial so the tenant pool will be wider, but this pool is usually price sensitive be interesting too see how its gonna work out.

 

 

The Pioneer centre @. soon Lee very packed n busy
Went there to get a workshop check door handle replacement cost

But Eco tech still lotsa vacant (sold but waiting for tenants)
Look see heard roof top has Swimming pool but no chiobu within compound
Ya...

 

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Mercury1

Mercury1

Turbocharged
(edited)

Sold one but got others still holding :)

 

meaning you sold off already ? 

 

Edited by Mercury1
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Aaronlkl

Aaronlkl

Supersonic

I'm looking for a B2 commercial property, size 1700 - 2000sqft.

 

Any area in Singapore at least 25 years tenure left.

 

Ground floor preferred.

 

Other level can consider.

 

Any match,

 

Pls PM me.

 

Thank you

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Kusje

Kusje

Supersonic

Question from an aspiring investor (probably many years down the road):

 

What's the typical investment quantum for a commercial property and industrial property?

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Mercury1

Mercury1

Turbocharged

Question from an aspiring investor (probably many years down the road):

 

What's the typical investment quantum for a commercial property and industrial property?

For industrial there are many factors to consider which weigh in to the overall price. Instead of quantum best use psf to gauge, before the boom prices where hovering around the 250 to 350 range for new (60 yrs leasehold) and 200ish range for older units (assume leasehold 40 - 60 years) around 2010 which was reasonable given the rental yield. So for half a buck you would get a property of about 1600 sq feet (proper space no loft concept)

 

Adding to that one thing to note is now a days developers build a high ceiling and charge the consumer for "loft" space effectively increasing the shop space which lowers the psf price. Need to consider of that will suit the business you are trying to attract

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Wyfitms

Wyfitms

Twincharged

be interesting to see how some of the REITs performs these few years ... especially those with retail malls ...

Latest announcements not bad leh
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Still2016

Still2016

Twincharged

For industrial there are many factors to consider which weigh in to the overall price. Instead of quantum best use psf to gauge, before the boom prices where hovering around the 250 to 350 range for new (60 yrs leasehold) and 200ish range for older units (assume leasehold 40 - 60 years) around 2010 which was reasonable given the rental yield. So for half a buck you would get a property of about 1600 sq feet (proper space no loft concept)

 

Adding to that one thing to note is now a days developers build a high ceiling and charge the consumer for "loft" space effectively increasing the shop space which lowers the psf price. Need to consider of that will suit the business you are trying to attract

Great info and very helpful.

 

if you can help with these questions

 

1. What happens when lease expires? Any experience on how much or how they calculate top up?

 

2. Loft building after move in. Does this need approval from building management and authorities? Do we need to buy insurance when we rent it out?

 

3. SME generally looking for what size units?

 

 

TIA

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Wyfitms

Wyfitms

Twincharged

yes ... see how things go after another 2 quarters ...

hospitality results down today..

 

but i think it will take more than a couple of quarters to see distribution fall

 

due to nature of leases being 3-5 yrs and rental income will not be marked to market

 

REITs also have some room to play with operating expense and deferment of some capital expenditures

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