Phone 0418 129 299
pflynn@icpg.com.au
Hidden Leasing Costs - NJuly 2023
It is interesting to note that after salaries, the second highest business cost are the rental costs for leasing a premises. In many cases the total cost of occupancy over the term of a proposed lease, is not fully understood, or calculated.
Various additional costs such as outgoings, parking, fitout costs and make good, together with leasing incentives, are not factored into the decision making and evaluation process. Accurate budgeting will reduce risk, and save time and money.
The most appropriate financial analysis to use when considering leasing a property is to establish and compare 'whole of lease' term costs.
If you are thinking of moving, then now is a great time to plan the move, to ensure the best outcome for your business, money and reducing risk in the process. This will give you peace of mind, and the confidence to make an informed decision.
Confident Informed Property Advice
Welcome to Intercommercial Property Group
We make property and investment decisions work for you.
Boutique Independent Property Consultants.
Our focus is assisting clients with buying, leasing and selling office, industrial and retail property.
We operate throughout metropolitan Melbourne and across Australia.
Our dedicated client focus and independence is highly valued by all our clients.
It can be daunting when you are involved in a complex transaction and require support.
Services - Set Pricing. No Hidden Costs.
A snapshot of our services includes:
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advice with buying a commercial property or industrial building
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assist with office, industrial and retail property sales
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leasing property advice and market search
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commercial property reviews
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advice on the cost of investment property, and property expenses
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general property advice, cashflow modelling, and mentoring, as required
Contact us for a FREE Consultation.
Investing Vs. Speculating in Property
What’s the difference between investing and speculating? One is gives predictable results, and the other is gambling. Many investors make this mistake, especially at the outset of their investing careers. The key is to have a vision, set goals, be methodical, and do the market research.
There are distinct benefits of owning well leased commercial property investments are clear; secure leases (3 – 5 years), high quality tenants, fixed annual rental increases, and net rental terms. This is where the tenants are responsible for the payment of the majority of outgoings, and importantly comparatively higher returns are on offer, sometimes 5% net or higher.
The most important action, is to implement a plan, with a set of actions required to achieve your investment goal. Review the plan and actions on a regular basis to ensure you stay on track. Naturally, you will encounter obstacles along the way – be prepared to make adjustments to get in focus.
In many cases you cannot control the outcome, or peripheral events. So consider risk management as part of the investment process. It is essential to constantly be aware of outside and extraneous forces.
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