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Old 17-11-2012, 09:51 PM
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Originally Posted by Unregistered View Post
wow, 5.7% is a very very good yield. much thanks for sharing your knowledge. helps to know there are still some people who are generous in helping others in these forums.
Thanks for the compliments, will try to contribute whatever I can. Have much to learn from those more savvy in the game.

Another thing you want to look out for (got this from the papers)

- Developers sometimes sell you the above space as psf as well. So they can count an 800 sqf area as 1600 sqf if the ceiling height is high (6 - 8M). This one quite tricky, I know people who create a 2nd floor within the office to double the space, top floor office lower floor warehouse.

- The car park space can be a substantial amount of the actual psf you buy, for example the unit I got had 35% for the car parking space (fits only 2 cars) which means tenants will be paying for that extra space as rental. For example tenants rents your unit which is 2000 square feet of which only 1300 is actually usable and 700 is parking for 2 cars (rest is wasted by pillars etc)

The car parking is not really an issue if you are targeting tenants which do a lot of loading and unloading business.

- Also a lot off the industrial space sold is typically B1 (light industrial) which limits the tenants to like industrial suppliers, air con repair etc no heavy stuff like car workshop etc.
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