Commercial Units - good investment???

[Magna]

I'm currently looking at a commerial unit in a new industrial estate. It is 4,000 sq feet and has good space around the property approx 2,000 - 3,000 sq feet which could also be rented. The unit may need to be subdivided. Renting shouldn't be a problem - its well located and 10 miles away from a midlands town/city.

I have never looked into commercial property - are they a good investment? Can readers give me some pros and cons on this type of investment!

 

[soma]

Commercial Property hasnt really experienced the boom that residential property has, and there are those who are tipping it as the next big thing. The difficulty is that in place like Ireland.. with so many vested & unannounced interests it's hard to trust any kind of "general concensus".

With some research you should be able to determine if there is a need for commercial property in the area - this is crucial as there's nothing worse than a big industrial estate lying empty. Look at parkwest in Dublin 12, it's open for years, rent is quite low for high quality office space & yet it is still half empty.

Also you say the property is 10 miles from a town/city - would it be used as offices or as e.g. a warehouse..? That distance might be too much for office space..? As one of the supposed advantages of moving to the midlands/west is avoiding large commutes for work etc..

 

[Duplex]

Establish the likley rental value and the net yield you'll achive. You should make 4-6% net if the property is lettable. The killer with commercial property in Ireland is voids.