WIW Commercial - 71A Glaslough St. Monaghan

My first WIW.

Quite hard to price commercial property.
Were at one point looking for €750k I believe.

C.225 sq m Site
440 sq.m (4,736.1sq.ft) over 3floors
3 Story Building
Dual Frontage onto Glaslough Street & Town Car Park
Superb Opportunity to Redevelop Subject to Planning
Zoned Town Centre

€750k => €1704/sqm - €158/sqft

This one daft.ie/539562 €250k - €1543/sqm - €143/sqft

Any thoughts?

Its monaghan ffs.

The whole county has a population of about 50k.

I know. I put that in the title.

Census '06 55,997 people in the county. 6,221 in Monaghan Town.

I’m wondering what people think commericial property in towns across Ireland might be worth these days.
Per sq.ft. say.

This is a massively difficult WIW. Firstly what is the rates bill PA and if you redevelop will they find a way to hike this by saying you have increased your retail space or some such wheeze. Second how good a location is this in the town? Thirdly have you a business need for a retail premises in Monaghan. Will your business be able to afford the repayments on anything more than a €250k commercial mortgage in Monaghan. Its more a - whats it worth to you - than an actual WIW. My guess is a good premises in a busy country town can repay maybe €250k for this, assuming their business model holds up and I will emphasise guess, as any retail business plan in 2010 is a work of hope and imagination.

TBH - Some of the sale prices quoted for commercial property, especially commercial sites with ‘development potential’ in this country are a complete joke.

Take a town near me, Newtownmountkennedy in Wicklow. Population 2,548, about 30KM south of Dublin. Do a quick daft search on commercial property and there are 24 properties to let, most of them industrial units. There is also a commercial site for sale with a price tag of nearly 1M.

Now, why would anyone of sane mind, buy a site and build a commercial property when its obvious that a lot of whats currently there can’t be rented. Most of these development sites I would actually value at €0 or less…

This is why valuing commercial premises in small towns is so difficult. There are still some very valuable and desirable premises in all these towns and a huge amount of complete and utter worthless rubbish. Now valuable no longer means 7 or eight figures for a good stand but they have and will continue to have an intrinsic value above the average. These premises rarely come up for sale as the almost always house a profitable business so there is no incentive to sell. Most other premises in these towns are just hanging in there if even that.

Do commercial properties in Ireland attract ‘rates’ like they do in the UK?

If so, wouldnt you be taking a liability off the owners hands?

I’m familiar with parts of Monaghan (not this part) and I wouldnt imagine many buildings are worth more than 50k but thats based on nothing more than my personal opinion.

Yes they do and you have to be very careful buying and leasing(as opposed to renting) as you can get hammered for overdue rates from a previous occupant. At least that was the situation 10 years ago, not 100% sure if it applies now but rates have gone up hugely in the interim both as an annual % and due to “reviews” of actual trading sq footage of shops etc.

monaghan.ie/websitev2/counci … Rates.html

From valoff.ie

I never knew this agency existed.
Now I wonder how up to date their valuations are.

I know Monaghan CoCo made a big son and dance about not **raising **rates last year.
If they’re meant to be based on property values then surely rates should be getting sliced and diced right now.
Unless of course The Valuation Office uses Lenny’s LTEV.

I can’t put a figure on what its worth, but my main concern is that the whole town has been decimated with the downturn and people going across the border to shop. This might and hopefully will change a bit with the VAT increase in the North at the end of the year.

If you’re familiar with the town you’ll know there are LOTS of empty commercial units… look at the shopping centre ffs… 4 empties smack bang in the middle of it!

This property is not in a great location and footfall would be poor. The parking, I’m sure the ad is referring to the long term car park at the rear? You might have a couple of pay parking spaces across the street, but its exactly that, across the street.

Having explored a few avenues a couple of years ago about opening a premises in Monaghan, Cavan and Dundalk, there’s a science in picking the correct one. It’s a feckin mine field.

I would full stop question it as an investment. I’d have to be paid to take it off somebody and develop it into something.

All of this negativity mind you should help drive the value down!

If you have a very specific business in mind that didn’t require immediate parking and people would go out of their way to rather than casual impulse you might be on to something!!!