This generally results in the property being sold for significantly less," says Tim Fox, director of Property Fox.
"By moving quickly to address the challenges, doing simple things like establishing service level agreements for essential services, installing a modern access control system and re-instating the annual fire safety statement we were able to renew existing tenants for 3-5 year leases and increase the overall occupancy rate," Fox
An owner asking for help earlier can also maximise a final sale price says Fox
Tim Fox, director of PropertyFox, says Lo's specifications are not uncommon for media and creative industries and one of the most popular locations for businesses within that sector is at Pyrmont.
negotiated the lease on behalf of The Marketing Zoo
at 5-11 Harris Street, in Pyrmont.
This unique heritage waterfront building with it exposed beams and edgy warehouse/office feel met the criteria Lo was looking for.
"The property is unique and it offers water and park views.
It has a winning combination of proximity to the city and a village feel about it with lots of small pubs and cafes on the doorstep," Lo says.
With only one major development planned in the city fringe - Central Park Chippendale - which will not be completed before 2014, existing commercial space in this market is at a premium says Fox
"The vacancy rate in Sydney's metro office market has declined in the first quarter of 2012 to 7.3%," Fox
"And the outlook is that it will remain that way for a while yet."
And with a tight market, incentives for new tenants have also dropped with rents on the increase.
"There has been a lot of demand from tenants for space in the city fringe with some A Grade assets achieving exceptional rental growth ," says Fox
"Most of the space now available is B Grade stock and even that is becoming scarce."
With such a tight market, investors can see the potential for a good return on their money and there's been plenty of inquiries from both private and institutional buyers says Fox
"With net face rents for A grade stock ranging in the low to high $400/sqm and B grade from mid $300/sqm to $400sqm, now is a great time to acquire property and position for rental growth ," he
"Although there is still a credit squeeze and banks are being cautious, there are buyers out there looking for the right stock."
In the sub $10 million bracket Fox says there are private investors who have the capital to get into the market and as is usually the case, those investors are looking for properties with long leases and premium tenants already established.
Syndicates are also looking closely at properties between the $10-$30 million price range because of the potential for returns especially in the long term says Fox
"These types of properties offer buyers a pretty risk free investment especially if they tick all the boxes of having long leases and strong covenants in place," he