Recommended rent for Mechanic workshop

[Dyldo]

hi guys

On behalf of a friend I am trying to ascertain the right rent price per month that a 2-bay mechanic workshop should be charged. The mechanic will have his own hoists and tools etc, just trying to ascertain rent.

Workshop is slightly regional NSW with great loyal support and zero competition within 10mins drive.

[Dyldo]

Nobody has any ideas?

[brad]

I couldn't quite understand the question, therefore didn't answer.

Does your friend wish to rent the place for himself or is he the owner?

If he wishes to rent for himself then the rent should be part of his business case - ie: he should have an idea what the market is willing to pay to get their car fixed (and how big the market is) then subtract all the business costs & the final figure will be his hourly rate that he has to live on. No point doing a business case based on $90/hr & 50hrs a week work if the surrounding area is full of tightwad pensioners & the whole town has 10 people in it. No point having the hassles of working for yourself & ending up with $700 at the end of the week if the local garage/dealership pays $800 without the hassles & responsibilities of running a business.

When I was mechanicing, our hourly rate was 20% less than the local Toyota dealer & we had a core group of about 300 repeat customers on the books for 2 mechs & an apprentice plus we had a heap of "blow-ins". Cars needed a lot more servicing (oil change every 5000km) back then, so I assume you'd need more customers these days.

If you own the property, then rent will be what the market can take. Why limit the place to be a mechanical workshop?

Also, rent will depend on the terms of lease. Is it a short lease or something more complex like 3yrs + options of2+2+ with rent reviews every 1 yr/2yrs/etc?

[jamesatfish]

Commercial rents are often quoted as $ (per annum) per square metre, and this figure will vary greatly depending on the area you're in, the use clause for the building (is it just an industrial area, or can you open a retail store or office in the same spot?), the state of the fitout, available car parking etc etc.

I have no idea where you are specifically located, but in Canberra I would lease you an industrial building that would suit vehicle service/repair work (ie mainly warehouse without fancy fitout or street frontage) for between $130 and $160 per mt, depending on whether you'd be taking a short term (<3 year) or longer lease.

Do a quick search on any of the commercial real estate sites and find similar buildings for lease in your area, as that will give you the best idea of what you should be paying in terms of rent in your area.