Average price per square foot

RYR154

Can anyone tell me what the avg price per Sqr foot is for commercial property in Dublin.

I have a small business on the south side of Dublin (Suburbs) and I have a 15 year lease. I am considering putting an offer to my landlord but I am not sure what I should offer.

My business covers about 200sqr/f with parking out front for one passably 2 small cars. Its an old building and I own the business.

Any ideas on what would be a fair offer that would not have her laughing or biting my had off?

astrofool

It's really going to depend on the area, is it a shop front you are renting, or a work place. Could you try and find out what similar property in the same area went for (if any has been sold recently). Also, have they indicated they want to sell, or are you initiating the deal.

RYR154

There is only one shop next door. other then that it is surrounded by houses.
Its on a main street kinda.

Its a converted single story building, very old and needs work

There is nothing else in the are as small as where i am.

I am hoping to get the ball rolling on it with the hope that she wants to sell.

jdivision

Given premises is occupied he'd be selling it as an investment property. Multiply your current rent by around 20 times and you'll get close to the asking price for the premises (that would be a yield of about 5 per cent which is about right for a secondary location, he might demand 25 times though). Add about 20k per car parking space

RYR154

If thats what she is looking for she can stick it.

The way prices are going it would be better for me to hold off until they come down a bit.

I'm entitled to have my lease renewed after the 15 years are up. So looks like I will be taking that route.

antoinolachtnai

You can only renew for a further 5 years, no?

You're really the person who has to stick it, if you don't mind me saying. You're the one who would like to buy and she has to find your offer attractive for it to be worth budging. No doubt she has her own good reasons for not putting it on the market. Where else could she get a solid 5 percent return (with a good tenant!) and the prospect of commercial appreciation?

It is hard to predict what your needs would be in 15 years. I would not bank on central, commercial property going down in value very much over the medium term.

If the property is old, in middling order, one storey and the smallest building around, the land may well be worth more as development land than as a property with an ongoing return. This could make it more valuable than 20x or 25x rent (by the way, I wouldn't say there would be a further 20k for every parking space if this is already factored into the rent).

This is where the value of your lease could be. You can effectively stop her from selling the property to a developer and making a quick killing (assuming your lease is sound). On the other hand, if the property needs repairs, you are stuck with doing them for the next 15 years (assuming you have a rent-and-repair lease which is normal).