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.
Regards
Steve Evans