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Updated over 6 years ago on . Most recent reply
First deal on commercial real estate
What's up guys.
New member needs some advice.
Recently I came across a warehouse in NY, which is about 5,000 sf. And only 1 tenant occupy whole property and have 10 years lease remaining.
Owner ask $950k
Property tax is about 20k
Monthly rental is about $7,700
Tenant pay insurance and tax increase base the first year.
Is this good deal ? What do I need to do or pay attention before closing this deal ? Since I am very new and do not have knowledge on investing warehouse.
Thanks
James
Most Popular Reply
- Real Estate Broker
- 3412 S. Harlem Avenue Riverside, IL 60546
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@James Xie I am not in the warehouse space, but it seems like you need to spend a lot of time researching the single tenant. How likely are they to stay? Are they replaceable? You would be paying a pretty penny for the warehouse, so if it is vacant you would be bled pretty quickly. If it is likely to stay rented to the same tenant for years, then this may make sense. I personally like to have multiple units so your risk is mitigated a bit, and to be fair I am a multifamily guy not a commercial investor.