Keeping our clients informed is important to us so we regularly publish our thoughts on topics that will be of interest to anyone involved with commercial property. We call them ‘insights’ and we hope you find them of interest.
The Lease Bureau has been around for nearly thirty years now and during that time we have prepared over 6000 leases. When I mentioned this to an accountant friend the other day, he asked whether I knew what the value of the commercial property was, that our leases had protected. This got me thinking, so I did some calculations which went like this:
Total number of leases = 6000 (approx.)
Average Annual Rent (based on the last 30 leases that we prepared) = $40,090
Therefore, Total Rent = $240,540,000
As most of our work is to do with commercial property in the greater Adelaide area, we can conservatively work on a 6% yield figure.
This equates to a capital value of $4,090,000,000.
That’s over 4 BILLION dollars of commercial property whose capital value has been protected by a Lease Bureau lease over the time we have been in business.
Not bad really and something that we are pretty proud of. So I thought I would share it with you.