Finding the best location and commercial property for your budget
When buying a commercial property to establish a new business, the location and specifications of the premises are key.
However, as is the case with most start-ups, finances are tight given expenses are high and income is low, or perhaps non-existent.
In most cases, this means compromise, which was the case for one entrepreneur who was establishing a stand-up paddle board distribution centre in Perth.
This client engaged us with a $400,000 budget requiring a 140 – 150 square metre premise comprising mainly warehouse space, but he also wanted a small office and a showroom area as well.
The sticking point in the client’s brief, though, was that he wanted to buy the property in Balcatta, which is regarded as one of Perth’s premium industrial locations.
Knowing the local market, we advised the client that finding a suitable property within his budget in Balcatta would be near impossible.
With no room to expand his financial capacity, we advised the client that we’d search for properties in other locations that suited his budget and criteria, but we’d also examine Balcatta nonetheless.
While Balcatta was all but out of the question, our consultants were confident that, with assistance from our in-house research department, we could find a suitable property in a location that met the client’s needs.
With this in mind, we identified Wangara and Malaga as two appropriate areas to establish his stand-up paddle board distribution centre.
After an extensive search, our campaign confirmed what we had already known – Balcatta was too expensive for the client’s budget.
We advised the client that if he was determined to establish the company in Balcatta, there were a number of leasing options available that we had identified.
However, set on buying his own premises, the client valued our advice and decided he would be happy to consider the other locations that we’d also investigated – Malaga and Wangara. We recommended Malaga as his best option.
Providing the client with a shortlist of properties that we could walk him through and explain the benefits and drawbacks of each, the client eventually decided on a 143sqm site which we were able to negotiate the purchase price and contract terms.
While Malaga isn’t regarded as much as a premium industrial suburb as Balcatta, the former is still relatively central being just 11 kilometres from the Perth CBD, and it comprises property that, although generally older, offers great value for money.
More importantly, as a distribution centre, it fits the client’s needs given that Malaga borders Reid Highway, which is connected to Perth’s major arterial roads providing good connectivity to key retailers.
As an added bonus, we were able to acquire the property for just $310,000 – well below the client’s budget – which provided him with more financial capacity for other aspects of establishing his business.