My Kingdom for a Commercial Property Investment!

Well it’s just so hard to buy a normal everyday, sub $2million commercial or industrial property investment just now.

Each week TradeMe emails me the latest listings for commercial/industrial properties. Which is quite handy.  You can set up a search in TradeMe and then click a box to get the results of that search sent to you each day or each week etc.

Now most of the properties listed don’t have prices of course, with everything being sold ‘by negotiation’, and lots don’t have tenants either, but some do.  And they are outrageously priced.

This one is a good example:

Bunch of average shops, zero car parking, in Panmure which is an average sort of a suburb, and they are asking a 5.9% return minimum i.e. calling for offers at a lower yield, i.e. higher price than that.

Here’s another one with a slightly higher return of 6.5%:  But is only 69 sqm big.  And $395k.  Has quite high rent of $376 per sqm.

Man, slim pickings out there…

This must reflect the that people just don’t really want to sell their properties. What would they do with their money? Put in the bank and get 3% after tax?  Buy gold and get no return?  Take their chances with the sharemarket sharks?

Inflation is also a concern of course with money in the bank possibly going to be inflated away as the world’s reserve banks try and print their way out of recession.