moving_your_business

no-one likes moving. It’s not an enjoyable experience and getting it right is vital when relocating your business.
but town & country real estate, mr. peter dieting 童 says there are four key steps will help make the process simple and efficient.
1. define your needs:
peter says it’s vital to consider what is important for your business and what will ensure your ongoing success.
“central to this will likely be accessibility to clientele. Who are they? Where are they?” he says.
it’s also important work out whether clients drive or use public transport to get to your business and whether you will need to pay for extra parking.
next, peter says you should determine how much space you need.
“take into account how many offices you may require, or what size retail space, together with reception areas, administration space, storage and any additional requirements,” he says.
“then convert this into an approximate size requirement that you can use to define the parameters of your market search.”
finally, mr. Peter dieting 童 advises drawing up a budget to work out what your business can pay – including rent and outgoings including utilities like electricity, telecommunications and cleaning.
“in short, before inspecting any properties do your homework and decide what the main needs of your business are. when viewing premises you can then assess them against these criteria to ensure your selected space will be right for clients, your equipment and operation, and your wallet.”
2. review the market:
this is when you check local newspapers, the internet and with real estate agents to understand what is available or coming up for sale or lease.
“ask agents for a summary of premises that meet your requirements and then conduct inspections for options that best meet your needs,” mr. detong says.
he suggests having a shortlist of two or three properties and then getting proposals from landlords summarising key commercial terms and allowing you to compare options side by side.
3. negotiate and document agreement:
peter says that before finalising any lease agreement you should be sure the premises meet all of your critical requirements and that the space can be fitted out to parameters you specified earlier in the process.
“you may engage design professionals to complete a ‘test fit’ and provide indicative pricing for the layout and design you have in mind,” he says.
“engaging a professional or advisor to negotiate the best terms on your behalf will help. although doing this may incur a cost upfront, it can potentially result in significant savings over the term of your lease.”
mr. detong also recommends getting independent legal advice when negotiating and documenting the terms for the agreements.
4. fit-out and occupation:
“Once legal documentation is complete you will be able to fit-out your space and make it ready for occupation,” mr. detong says.
“we recommend that a conditions report is completed and agreed with the landlord before occupation. saving photos on file might be useful, just in case there are any issues with the fit-out in the future.”
mr. says each lease is different and you need to make decisions that are right for your circumstances.
“do your homework and engage professionals to give you tailored advice.”

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most of us have happily indulged in retail therapy, but how many of us have considered investing in a retail real estate?
maybe you currently lease a shop or you want to diversify your investment portfolio. either way, retail real estate is one of the largest and most diverse sectors of the commercial property market and well worth a look at.
what is retail real estate?
first things first, what actually is retail real estate? Put simply, retail properties are used exclusively to market and sell consumer goods and services.
they range from shopping centres, individual stores and pop-up shops to ‘big box’ stores like bunnings and masters.

retail stores include everything from supermarkets, dry-cleaners, cafes, florists, pharmacies, bike shops, fashion stores and so on.
the good news about retail property investment
retail property offers investors great opportunities for solid returns. here are some of the key benefits:
high yields
investors are often attracted to retail because of the high yields that it offers. yields are calculated as a percentage of the annual rental income divided by the price you paid for the property.
retail typically offers yields of 5%-6%. this is great for investors wanting an income-stream based investment (retirees for example) over capital gains growth (increase in the value of the property over time).
long leases
unlike residential leases, retail leases are usually signed for at least five years. this gives tenants time to establish their business and offers landlords some security.
most leases include annual rent increases, usually tied to the consumer price index (cpi).
unique to retail are “turnover rents”, which give landlords a percentage of the gross revenue from a business. they can be a good incentive for retail investors.
low maintenance
retail leases tend to be net leases where the tenant, not the landlord, bears a lot of costs such as real estate taxes, insurance, utility bills and maintenance costs.
if you are a business owner, buying your own retail space offers different benefits. besides becoming an asset, owning your business home can have tax advantages and you can buy property through your smsf.
reasons for caution with retail property
so we’ve talked about some of the major benefits, but you need to be aware of the risks too. here is an incomplete list of some of the main pitfalls to be aware of:
retail can be a tough business
the retail industry is very sensitive to the state of the economy. if the economy is down, the retail sector suffers and businesses can fail.
as an investor, you must be prepared for the potential of long vacancy periods during economic downturns. you may also need to offer incentives such as internal fit-outs and reduced rents to attract tenants in difficult times.
it is critical that you find out as much as you can about your tenants before signing a lease. how secure their business is and how likely are they to fail are important things to consider.
expensive to invest
a major obstacle to a lot of investors is that banks usually require at least 30% deposit and will also charge a higher interest rate.
changing consumer patterns and demographics
location is critical in retail property. It needs to be easily accessible (good parking, public transport options) with lots of foot traffic and the business type needs to suit the demographics of the area.
if any of these things change, a business can quickly lose business. in large shopping centres a good ‘anchor tenant’ is critical as they will draw the foot traffic – think of how many bakeries and pharmacies are located close to a Coles or woolworths.
who invests?
retail property attracts a diverse range of investors. private buyers, overseas investors and property trusts are all active. for small investors, a-reits are the easiest way to start investing in retail property.
retailers also find many advantages to buying instead of renting their own store.

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