For investors
Commercial real estate investment
Commercial space generates income in two ways: rental payments and an increase in value as the property is ready and the area develops. Unlike housing, profitability is calculated before purchase, and the agreement with the tenant is concluded for several years.
Where to start as an investor
RSG works with retail real estate: premises on the first floors of shopping, district and shopping and business centers, storefronts on the street, network and local tenants. Such premises are in demand among a wide range of tenants, and the demand for everyday goods and services depends little on the economic cycle.
The strategy is determined by the task. If you need stable rental income without operating participation, consider a ready-made premises or lot with an existing tenant. If the horizon is a year and a half and the goal is to increase value, enter at an early stage of construction. Below we have described both scenarios by stage and compiled a list of checks before the transaction.
Team
Why commercial real estate is a safe investment
We presented the financial models of RSG objects in the form of a graph: the dynamics of the price per square meter from booking to commissioning. The calculation was carried out according to the base scenario, without optimistic assumptions, at the current prices of the developer.
Two investor strategies
What to Research Before Buying
Six checks before the transaction take two to three weeks and protect against errors that cannot be corrected after the purchase. For objects in the RSG catalog, this data is collected in a card; a full report on the object is prepared upon request.
How to find a tenant
Start before typing
Chains plan openings a year and a half in advance and sign contracts before the facility is put into operation.
Define the format
A cafe, pharmacy and bank have different requirements. Premises for the format are rented out faster.
Entrust brokerage to RSG
We know the needs of networks and select a tenant for your premises.
What is important for the owner to know
What does the rent consist of?
As a rule, from a fixed rate per square meter and compensation for operating costs: utility bills, maintenance of common areas, security. In shopping centers, a percentage of the tenant’s turnover is added to this: it grows along with sales and motivates the management company to develop the property.
For what period is the contract concluded?
Network tenants enter into contracts for five to ten years with the right to extend, small businesses - for 11 months with automatic extension. An agreement for a period of one year is subject to registration as the right to use real estate. Without registration, it is not valid for third parties.
What expenses does the owner of the premises have?
Property tax and income tax, operating payment to the management company and maintenance of common areas, if according to the agreement they are not assigned to the tenant. In your calculations, factor in downtime between tenants and preparation of the premises for a new one: one to two months a year.
What is profitability and how to calculate it?
The ratio of annual rental income to the cost of the premises. For example, 100 m² for 130 million ₸ at a rate of 12,000 ₸ per m² per month brings 14.4 million ₸ per year, that is, 11% before taxes and downtime. The payback period is the inverse of profitability: about nine years. Take the rate for comparable premises in the same location; in the RSG catalog it is indicated for each object.
Benefits of buying from RSG
About
RSG has been advising investors and owners of commercial real estate since 2014: market analysis, concept, financial model, architecture, brokerage and property management. We are responsible for the result all the way: from the idea to a working facility with tenants.
