Industrial / Commercial unit empty - what to do with it ?

Humblepie

Hi Guys,

Just looking for some advice / ideas...
Basically, we ended up owning a newly built industrial / commercial unit as part of a deal some two years ago. The property is empty the last year and at this stage is atin alot of grass as the man says.
Its located in a Meath town a stones throw from Dublin. There is about 6 other units in the development and its off the main road. Size is approx 3,500 sq ft, on two floors. Estimated value was approx 500k two yrs ago. Reckon we'd let it rent for 25k pa, even 20k at this stage - think thats about 7 or 8quid a sq ft. Given the state of the economy, we dont know what to do. The unit could be suitable for likes a carpenter/ tradesman / retail / light industrial / storage etc.

Question is if you were in this situation , what would you do ? Just throwing it out there....Any comments / ideas appreciated.

BarryM3

Can you PM me details of the unit please

newfrontier

can you pm details of the unit aswell?

TheCostumeShop.ie: Ronan

If i were you i'd just get someone in the building on a short term lease, its doing nothing empty... If you smart you'll drop the the price enough to get to choose the right tenant that will grow their business fast enough to be able to afford to pay proper rates in the near future. Hopefully they'll appreciate it and be loyal to you, worse case you made some money and lost very little.

Offer discounts, rent free periods or whatever you have to do to get them in and contributing something to the mortgage / ownership.

There's too many empty industrial units that are purely so because people are basing the prices on a discount of two years ago etc. Market rate is whatever someone will pay today.

jimmmy

If you get in a tenant paying little or nothing they could cost you a lot in the long term....you may not be able to get them out when you want etc.
No point engaging in a price war too much.

TheCostumeShop.ie: Ronan

That would depend on the contract really, if you contract to increase the rent from market to your perceived level of its value then that would be fine i would imagine. Just as long as its in the legal documents.

Mickk

Humblepie wrote: »

Hi Guys,

Just looking for some advice / ideas...
Basically, we ended up owning a newly built industrial / commercial unit as part of a deal some two years ago. The property is empty the last year and at this stage is atin alot of grass as the man says.
Its located in a Meath town a stones throw from Dublin. There is about 6 other units in the development and its off the main road. Size is approx 3,500 sq ft, on two floors. Estimated value was approx 500k two yrs ago. Reckon we'd let it rent for 25k pa, even 20k at this stage - think thats about 7 or 8quid a sq ft. Given the state of the economy, we dont know what to do. The unit could be suitable for likes a carpenter/ tradesman / retail / light industrial / storage etc.

Question is if you were in this situation , what would you do ? Just throwing it out there....Any comments / ideas appreciated.

Is the footprint of the building 3500 sq ft or is it 1750 sq ft with two floors making the total sq footage? Have you tried an add on daft.ie? I think units are still moving it's just the rents have to re-adjust.

spadder

Is it in or near Trim?

Humblepie

Mickk wrote: »

Is the footprint of the building 3500 sq ft or is it 1750 sq ft with two floors making the total sq footage? Have you tried an add on daft.ie? I think units are still moving it's just the rents have to re-adjust.

Its 3,500 sq ft total, 1750 top and bottom

Thanks

The Guvnor

If possible and probably not with two floors but what I think makes sense would be dividing it up and renting out smaller sections.

Even put in 10ft containers and rent them out and make up 6 offices upstairs at 200-250sq ft each.

If the unit is say 32ftx50ft then you could have as many as 12 containers in there. You would rent these for €25.00 per week, offices at €75.00 (comfortably).

€39,000 PA.

That is what I would do. I firmly believe people want some space to start-up or try something but they need a decent price.

I'd forget about estimated value at this stage mate. Get some revenue in - empty is costing you money week on week.

If the above went well you'd not be long trying to find another unit and doing the same!:D

Humblepie

The Guvnor wrote: »

If possible and probably not with two floors but what I think makes sense would be dividing it up and renting out smaller sections.

Even put in 10ft containers and rent them out and make up 6 offices upstairs at 200-250sq ft each.

If the unit is say 32ftx50ft then you could have as many as 12 containers in there. You would rent these for €25.00 per week, offices at €75.00 (comfortably).

€39,000 PA.

That is what I would do. I firmly believe people want some space to start-up or try something but they need a decent price.

I'd forget about estimated value at this stage mate. Get some revenue in - empty is costing you money week on week.

If the above went well you'd not be long trying to find another unit and doing the same!:D

Thanks Guvnor, thats solid advice. Much appreciated. With the current access to the building etc, it may not be a runner though, good thought though.

Sonnenblumen

Humblepie wrote: »

Hi Guys,

Just looking for some advice / ideas...
Basically, we ended up owning a newly built industrial / commercial unit as part of a deal some two years ago. The property is empty the last year and at this stage is atin alot of grass as the man says.
Its located in a Meath town a stones throw from Dublin. There is about 6 other units in the development and its off the main road. Size is approx 3,500 sq ft, on two floors. Estimated value was approx 500k two yrs ago. Reckon we'd let it rent for 25k pa, even 20k at this stage - think thats about 7 or 8quid a sq ft. Given the state of the economy, we dont know what to do. The unit could be suitable for likes a carpenter/ tradesman / retail / light industrial / storage etc.

Question is if you were in this situation , what would you do ? Just throwing it out there....Any comments / ideas appreciated.

Similar sized units are available in Dublin for similar money. but you might be lucky?