NAMA and commercial property Question

thebman

So I'm thinking we'll probably end up with loads of commercial property out of this that is lying idle and unused.

I'm thinking couldn't the government once it owns, give rent free commercial property to start up businesses and companies abroad investing in Ireland to reduce the cost of doing business here.

It is bad to have empty property anyway and we'll still take in the money from taxes and then we can start charging them rent in a few years.

Would the EU frown on this?

Dob74

Sadly Nama will only push up the price of property instead of letting it fall further to a more realistic market price.
It makes me laugh to see the government say they want to be more competitive and yet they dont want to see the price of property drop. We maybe expensive in alot of areas but in real estate we are completely out of line.

I do think you have a good idea, they should also give land to exsisting businesses if they want to expand.

Sponge Bob

We would be better off demolishing some of these outright where there is a large market overhang and where no demand can be envisaged over the 15 year life of Nama.

Bulky retail is completely overdone , flatten the bastards and build skateboard parks

RealityCheck

Sponge Bob wrote: »

We would be better off demolishing some of these outright where there is a large market overhang and where no demand can be envisaged over the 15 year life of Nama.

Bulky retail is completely overdone , flatten the bastards and build skateboard parks

Also considering the fact they will deteriorate over time without proper maintenance, it may not be that bad an idea .

thebman

Well the deterioration was part of the reason why I think it is important to put people in these buildings if at all possible.

How much did the voting machines cost in storage? Now imagine the cost of maintaining these buildings!!

NewDubliner

It would be ironic if some of these properties turned out to be the same ones that were sold by the government to finance the 'decentralisation' program.

ei.sdraob

thebman wrote: »

So I'm thinking we'll probably end up with loads of commercial property out of this that is lying idle and unused.

I'm thinking couldn't the government once it owns, give rent free commercial property to start up businesses and companies abroad investing in Ireland to reduce the cost of doing business here.

It is bad to have empty property anyway and we'll still take in the money from taxes and then we can start charging them rent in a few years.

Would the EU frown on this?

Actually empty commercial property really bugs me as a small SME

all they have to do is lower prices and a lot of start up companies would jump in

There are so many examples of wasted space here in galway in prime locations, and some were empty since they were build many years ago!
and then theres the new Enterprise Ireland Webworks sitting there empty in city center, I just cant justify the cost of moving out of current home office back into commercial offices at this moment

And NAMA is a terrible terrible joke who will hold up the market and making the taxpayer pay for the mistakes made by banks and developers

RealityCheck

ei.sdraob wrote: »

And NAMA is a terrible terrible joke who will hold up the market and making the taxpayer pay for the mistakes made by banks and developers

A sorry attempt at trying to prop up property prices except this time people wont be so quick to be fooled. If only people would realise whos money is being spent :mad:.

eamonnm79

Or here is a crazy idea, Allow voluntary organisations use them for free rent.

Allowing small businesses have them for free creates moral Hazard because it puts their competitors at a disadvantage.

However here is an idea. How about if they were given to indiginous new starts on the condition that they were only producing goods for export or goods not currently produced in Ireland that we have to import.

Crap that might actually be a good idea.

Just to balance this with some pesimism,
Think about people who are going to loose their homes in the near future.
Wont they feel moraly justified in squatting in the empty flats/houses all over the country?
But thats a whole other type of Morl hazzard all created by the big grand daddy of Moral hazzard NAMA

ei.sdraob

eamonnm79 wrote: »

Or here is a crazy idea, Allow voluntary organisations use them for free rent.

Allowing small businesses have them for free creates moral Hazard because it puts their competitors at a disadvantage.

However here is an idea. How about if they were given to indiginous new starts on the condition that they were only producing goods for export or goods not currently produced in Ireland that we have to import.

Crap that might actually be a good idea.

Just to balance this with some pesimism,
Think about people who are going to loose their homes in the near future.
Wont they feel moraly justified in squatting in the empty flats/houses all over the country?
But thats a whole other type of Morl hazzard all created by the big grand daddy of Moral hazzard NAMA

why free? why not let the market do its thing and rents would fall,

NAMA and the unwillingness to lower rents (in face of so much supply) and lack of pressure from banks or government in form of property taxes

are leading to current situation where the owners rather have their property sit empty than something coming out of it all

hence another reason for introducing property tax

thebman

I wouldn't be entirely suprised if FF allowed them to stay in the houses to reduce their maintenance costs and to hopefully get a free vote from the bankrupt person in the next election.

I agree with allowing voluntary organisations to use them.

There probably aren't enough of them to fill them. I think even just reduced rent for commercial start ups and foreign investors that meet certain requirements would be good enough. They could just offer them at a more realistic market price to everyone of course forcing other commercial property renters to wake the hell up.

Sponge Bob

ei.sdraob wrote: »

theres the new Enterprise Ireland Webworks sitting there empty in city center,

Bernard McNamara owns that whole street nearly, prime NAMA material that .

This one has been lying empty for 8 years now . Since it was built .

And NAMA is a terrible terrible joke who will hold up the market and making the taxpayer pay for the mistakes made by banks and developers

Around 40% of all modern(ish) office space in Galway is empty by my reckoning .

They better start cutting deals at €7 per square foot with a 2 year break clause ....and parking . Otherwise garages and sheds are the order of the day in Galway and then they will nick you for water rates .

ei.sdraob

dont forget this place on bohemore roundabout

i never seen anyone in this huge building and i used to live few doors down...

http://www.daft.ie/searchcommercial.daft?id=48385

€125,000 !!!

Office For Sale
Floor Area: 250 sq. feet (23 sq. metres) <

---

:eek:

:D:D:D:D:D :rolleyes:


heres the new white elephant in prime location, empty still, but there is a secretary twiddling her thumbs...

http://www.webworksgalway.com/index.cfm/page/spaceavailable


i can go on an on

Sponge Bob

ei.sdraob wrote: »

dont forget this place on bohemore roundabout

i never seen anyone in this huge building and i used to live few doors down...

Absolutely correct , the ground floor is entirely shell and core. That building was finished 9 Years Ago by the way .....and has never been occupied.

heres the new white elephant in prime location, empty still, but there is a secretary twiddling her thumbs...

http://www.webworksgalway.com/index.cfm/page/spaceavailable

There is no secretary , that is a stock photo from somewhere or a model posed.

I understand that there are 'issues' between the IDA and Bernard but I can confirm that there is nobody working in the Webworks building and there never has been . It has been complete for around a year now. Over a year late too.

ei.sdraob

see feature in economist on commercial property

http://www.economist.com/businessfinance/displayStory.cfm?story_id=14124366&source=hptextfeature