How much rent to charge for a builders yard/compound?
Discussion
Evening all, I have an opportunity to acquire some land and turn it into general compounds/builders yards. This was an idea that came to me yesterday so I want to get some ballpark figures prior to putting any real legwork into the idea.
What sort of ballpark figure should I be asking for per m2 for a yard that has new secured palisade fencing, type 1 base, no power and located near Swansea SA10. The compound would be 1,500m2.
Similarly how much for a plot of land same as the above but with mains power. Compound size 3,665m2.
I have multiple people interested but before I start letting them view etc I'd like to see what the returns could be - even if that figure is very rough. I don't want to plan the venture totally blind. Obviously I can get a proper valuation further down the line when the compounds have been acquired and completed.
Thanks Gents
What sort of ballpark figure should I be asking for per m2 for a yard that has new secured palisade fencing, type 1 base, no power and located near Swansea SA10. The compound would be 1,500m2.
Similarly how much for a plot of land same as the above but with mains power. Compound size 3,665m2.
I have multiple people interested but before I start letting them view etc I'd like to see what the returns could be - even if that figure is very rough. I don't want to plan the venture totally blind. Obviously I can get a proper valuation further down the line when the compounds have been acquired and completed.
Thanks Gents
The lack of mains power will be a problem rent wise as it means the tenant can’t flood light it or install mains powered CCTV.
You’ll basically get the kind of tenant you don’t want without power. Expect all sorts of s
t to be dumped and left under the cover of darkness.
What’s the transport access like? And any restrictions on hours of use. We’re paying about £3.5 per sqm per month on a five year agreement for similar secure storage (with power) in the west mids.
Lighting and CCTV are mandated requirements of our insurers.
You’ll basically get the kind of tenant you don’t want without power. Expect all sorts of s
t to be dumped and left under the cover of darkness. What’s the transport access like? And any restrictions on hours of use. We’re paying about £3.5 per sqm per month on a five year agreement for similar secure storage (with power) in the west mids.
Lighting and CCTV are mandated requirements of our insurers.
Thanks Gents, that's a good start.
In terms of the site, it's in a good location, but is tucked away on a large, queit industrial estate. It's about 2-3 minutes off the M4 but the road in is a bit crap. It's wide and access is excellent even for artics, it's just a bit potholed.
I have a lot of interest off people I know so hopefully I can keep on top of any shenanigans. Power is the big one, obviously the rate I can charge will tank without power but would be good to know what an unpowered lot would be worth by comparison.
I've already put power into one for the current land owner so that's not out of the question
In terms of the site, it's in a good location, but is tucked away on a large, queit industrial estate. It's about 2-3 minutes off the M4 but the road in is a bit crap. It's wide and access is excellent even for artics, it's just a bit potholed.
I have a lot of interest off people I know so hopefully I can keep on top of any shenanigans. Power is the big one, obviously the rate I can charge will tank without power but would be good to know what an unpowered lot would be worth by comparison.
I've already put power into one for the current land owner so that's not out of the question
Tuvra said:
Evening all, I have an opportunity to acquire some land and turn it into general compounds/builders yards. This was an idea that came to me yesterday so I want to get some ballpark figures prior to putting any real legwork into the idea.
What sort of ballpark figure should I be asking for per m2 for a yard that has new secured palisade fencing, type 1 base, no power and located near Swansea SA10. The compound would be 1,500m2.
Similarly how much for a plot of land same as the above but with mains power. Compound size 3,665m2.
I have multiple people interested but before I start letting them view etc I'd like to see what the returns could be - even if that figure is very rough. I don't want to plan the venture totally blind. Obviously I can get a proper valuation further down the line when the compounds have been acquired and completed.
Thanks Gents
I seem to recall that a scaffolding firm in Neath were looking for a yard. What sort of ballpark figure should I be asking for per m2 for a yard that has new secured palisade fencing, type 1 base, no power and located near Swansea SA10. The compound would be 1,500m2.
Similarly how much for a plot of land same as the above but with mains power. Compound size 3,665m2.
I have multiple people interested but before I start letting them view etc I'd like to see what the returns could be - even if that figure is very rough. I don't want to plan the venture totally blind. Obviously I can get a proper valuation further down the line when the compounds have been acquired and completed.
Thanks Gents
https://www.gov.uk/find-business-rates
Can have a look on there and do an advanced search for storage land.
Will give you an idea of what current plots have been worked out at.
The base rate on there will be what the VOA think is the going rate, so some sites may differ etc and be less or more in actual rent paid, but it's a good starting point.
Lots of self-storage going up around here, so depending on where it is located, that could be a potential market. Would definitely need power.
Can have a look on there and do an advanced search for storage land.
Will give you an idea of what current plots have been worked out at.
The base rate on there will be what the VOA think is the going rate, so some sites may differ etc and be less or more in actual rent paid, but it's a good starting point.
Lots of self-storage going up around here, so depending on where it is located, that could be a potential market. Would definitely need power.
As a rule of thumb whenever I’ve let or valued compounds I’ve worked off a rate per square metre at the same rate as what industrial buildings in the area achieve per square foot.
So, if a shed lets at £5 per sq ft, land is £5 per sq m.
Edit to add this is for secure fenced land but unsurfaced and without utilities
So, if a shed lets at £5 per sq ft, land is £5 per sq m.
Edit to add this is for secure fenced land but unsurfaced and without utilities
Edited by soxboy on Saturday 4th November 13:18
If its any help (I doubt it) we charge about £28/m2 on ours.
That said, its got quite a large workshop on site and offices, toilets, canteen, tool / parts bay, wash bay etc.
As a flat site, maybe what, half that?
100% agree with what others have said make sure its a good company you are renting too.
We had all sorts try and rent ours and in the end managed to get a large company in and much more comfortable with that.
HTH.
That said, its got quite a large workshop on site and offices, toilets, canteen, tool / parts bay, wash bay etc.
As a flat site, maybe what, half that?
100% agree with what others have said make sure its a good company you are renting too.
We had all sorts try and rent ours and in the end managed to get a large company in and much more comfortable with that.
HTH.
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