Before signing, check the lease expiry date and option periods, current rent against market rent, the tenant's payment history, outgoings recoverable under the lease, any make good clause, and whether all lease variations and side letters are disclosed. Have a solicitor review the full lease and Section 32 before you commit.
Derrimut has become one of the more sought after pockets of the western industrial corridor, sitting close to the Western Ring Road and Western Freeway with good access to the port and Geelong. That demand means tenanted warehouses here trade on the strength of the lease as much as the building itself. Get the lease wrong and you have bought a problem with a good address.
A tenanted asset is really two things bundled together, a physical building and an income contract. The building can be inspected in an afternoon. The lease needs proper scrutiny because it dictates your cash flow, your exit options, and how much control you actually have over the property for years to come.
The lease is the asset, not just the shed
When a warehouse is sold with a tenant in place, buyers often focus on the roof, the clearance height, the hardstand and the office fitout. All of that matters, but none of it changes the rent you will actually receive. The lease document sets the ceiling and the floor on your return, so it deserves at least as much attention as the building inspection.
A tenanted warehouse is only as good as the lease that comes with it.
What to pull apart in the lease document
Checking the tenant behind the lease
The lease is only as strong as the business paying it. Ask for evidence of on time rent payment over a reasonable period, confirm whether a bank guarantee or bond is held and check it has not expired, and form a view on the tenant's financial standing. A vacancy in this part of the west can take time to fill, so the strength of the incumbent tenant matters more than buyers sometimes assume.
Buy the lease with the same care you would buy the building.
Mistakes buyers make on tenanted industrial deals
Common questions
A tenanted warehouse in Derrimut can be a solid, well located addition to a portfolio, but the certainty you are paying for lives inside the lease document. Read it fully, question anything unclear, and lean on your solicitor before you sign.
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Fairmont only sells and leases industrial property across Melbourne's western corridor and Geelong. That focus is deliberate. It means we know the buyers who are active right now and what they are prepared to pay.