Great Tips to Create Tenancy Mix

May 8, 2012 - Posted in Commercial Property, Retail - Permalink

When it comes to investing in commercial real estate and most particularly shopping centres, the tenancy mix for the property is the key to a good return. A great property manager can add value to the property for the landlord through good lease and tenancy mix management.

The tenancy mix for a retail shopping centre takes into account a number of key factors such as:

  • The expiry profile for each and every lease
  • The options strategy relating to extra lease terms
  • The rent review profiles and timing
  • Existing or soon to be vacant tenancies
  • The existing customer profile for the property
  • The clustering factors applying to other tenancies nearby
  • The existing levels of sales within the property and with each tenancy
  • The anchor tenant lease and location to support other tenants

Given these complex facts, it is easy to see why the landlord should select a good retail property manager. The choice of manager should be based on their skills, rather than the cheapest fees, as sometimes is the case. When it comes to investment property performance, cheap does not always produce the best financial performance for the property. We advise you to consult with the agency with the most effective property management systems before you make your final choice.

Article courtesy of John Highman – Specialist Writer & Trainer, Commercial and Retail Real Estate

Room for growth around Northbridge Plaza Shopping Centre

April 18, 2012 - Posted in Retail, Shops for Lease - Permalink

Northbridge is a proven shopping destination with Northbridge Plaza the number one Centre in its class at $16,720/sqm turnover, beating even the Queen Victoria Building, Sydney (source SCN 2010).

Clearpoint now have a selection of retail shops for rent close to Northbridge Plaza with wide glass frontages ranging from 132.4sqm to 294.4sqm plus plenty of parking.

Click here for details if you are looking for room to grow or an affordable alternative to shopping centre rents in Northbridge.

New Sydney CBD Retail Offering

March 12, 2012 - Posted in Retail, Shops for Lease - Permalink

Clearpoint is pleased to offer for lease a limited selection of new retail shops at 827-839 George Street, Sydney.

This new development is the undertaking of TAFE NSW Sydney Institute and will offer a good retail tenancy mix of food use and retail spaces, in the company of pre-commitments from a large gallery café plus a beauty salon. The property has five remaining retail shops for lease ranging from 21.5 sqm to 74.5 sqm.

The site is centrally located below TAFE NSW Sydney Institute on George Street, in one of Sydney’s busiest pedestrian hubs and moments from Central Railway and bus interchange. This new retail hub offers a range of opportunities to retailers drawing on a captive audience of students, commercial offices and a dense surrounding residential population.

For details on remaining opportunities or to arrange a viewing please call Clearpoint on 1300 325 327 or click here for property details.

Mobile Phones and Property

February 16, 2012 - Posted in Commercial Property, Retail - Permalink

realestateVIEW.com.au recently conducted research into mobile usage for property searches.
More than 2000 people participated. The research showed 40 per cent of people used their mobile as a primary or secondary device to search for property.
The most important thing consumers wanted was easy access to an agent’s contact details.

Australia: FIRB Update: Purchase of Australian Commercial Real Estate by “Foreign Persons”

June 30, 2011 - Posted in Legislation - Permalink

Article by Maria Ho, Norman Waterhouse

Commercial real estate includes vacant and developed property which is not for residential purposes. A foreign person wishing to purchase commercial real estate in Australia needs to be aware that certain restrictions may apply.

Foreign Person

‘Foreign Person’ is defined under Section 5 of the Foreign Acquisitions and Takeover Act 1975 (Cth) to mean ‘a natural person not ordinarily resident in Australia’. However, the definition also includes:

  • a corporation in which one or more ‘foreign persons’ or a foreign corporation hold a controlling interest;
  • the trustee of a trust estate in which a ‘foreign person’ or a foreign corporation holds a substantial interest;
  • the trustee of a trust estate in which two or more ‘foreign persons’ or a foreign corporation holds an aggregate substantial interest.

A person is considered to hold a ‘substantial interest’ if that person controls 15% or more of voting power or holds a 15% or more interest in a corporation. Two or more persons are taken to hold an ‘aggregate substantial interest’ if they together control 40% or more of the voting power or hold a 40% or more interest in a corporation. Either a substantial interest or an aggregate substantial interest is taken to be a ‘controlling interest’.

Developed Commercial Real Estate

Developed commercial real estate includes offices, warehouses, factories, restaurants, shops, hotels, motels, hostels, guesthouses and any individual dwellings within those properties. A foreign person is not required to seek approval from the Foreign Investment Review Board (FIRB) if the developed commercial property to be purchased is valued below the applicable monetary threshold set out in Australia’s Foreign Investment Policy (Policy).

Under the Policy, the monetary threshold for foreign persons acquiring developed commercial properties as at 1 January 2011 is A$50 million. The threshold is A$5 million if the property is heritage listed.

Monetary threshold for United States investors acquiring developed commercial properties as at 1 January 2011 is A$1005 million.

Foreign persons are permitted to purchase developed commercial properties valued above the monetary threshold if approved by FIRB. FIRB will normally grant approval for the purchase unless the approval is deemed to be contrary to the national interest.

Commercial Real Estate For Development

Foreign persons acquiring vacant properties for commercial development must obtain approval from FIRB regardless of the purchase value. FIRB will normally approve the development subject to the following conditions:

  • continuous construction commencing within five years; and
  • a minimum amount equivalent to 50% of the acquisition cost or current market value of the land (whichever is higher) being spent on development.

Exemptions

An Australian citizen or permanent resident living overseas is exempt from applying to FIRB for approval to purchase commercial real estate.

Regardless of the foreign person’s citizenship or residency, FIRB approval is not required if the person is acquiring property by will or by operation of law (such as a court order regarding the division of property in a divorce settlement).

No approval will be required for acquisition of property from the Commonwealth, State or Territory or a local government, or a statutory corporation formed for a public purpose.

A foreign person is not required to obtain approval for purchasing developed commercial real estate where the property is to be used immediately, in its present state, for industrial or non-residential purposes. The acquisition must be wholly incidental to purchaser’s proposed or existing business activities.

GST and “A Going Concern” In Commercial Leasing and the Sale of Commercial Property

February 23, 2011 - Posted in GST, Legislation, Strata Offices for Sale - Permalink

The ATO continues to muddy the waters on GST, with the withdrawal of the draft addendum to GSTR 2002/5. The intention of the addendum was to clarify when an “enterprise of leasing” commercial property is operating, thereby creating a GST-free supply of a going concern.

The draft addendum indicated that where a building that had been leased is vacant, there would still be an “enterprise of leasing” and the vendor would be able to make a tax free supply (supply of a “going concern”) provided the vendor was actively seeking a new tenant.

For a building which had not previously been leased, there could be no “enterprise of leasing” until the “activity of leasing” actually commenced. This was defined as time at least one tenant entered into an actual lease (as compared with an agreement for lease) or occupied the building under a periodic tenancy.

With the withdrawal of the draft addendum, the view contained in paragraph 151 of GSTR 2002/5 is unchanged, and the Tax Office therefore considers that the activity of leasing commences when at least one tenant enters into an agreement to lease or occupies the building.

In simple terms, the sale of a vacant building or any other commercial property will continue to attract GST on the sale price.

Rhys Donnellan, Clearpoint

Real Commercial Considerations for Retailers

January 30, 2011 - Posted in Commercial Property, Retail, Shops for Lease - Permalink

Retailers in the face of limited availability of retail space for lease but increasing competition for consumer spending, face real commercial considerations when deciding whether to renew a lease or offer up a vacant retail shop in Sydney.

The expansion of national retailers and influx of international brands to Australia has buoyed up a period of slow growth in retail spending over the past few years.

However, retail trade figures are now showing  marked improvement on the back of employment growth and increased household wealth.

The strong Australian dollar, recovering sharemarket , and recent boom in the Sydney property market are all contributing factors to the growth in retail spending.

The key retail success is always finding the right location. With increased demand, and improvements in retail spending, there will always be demand for well positioned good quality retail shops for lease in Sydney.

Any retailer considering leasing shop space or renewing  an existing lease are advised to search for shops for rent in the Sydney area as a comparison, or seek expert advice on retail leasing from specialist companies such as Clearpoint – www.clearpoint.com.au