Street-retail in the center of Berlin, Germany

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Street-retail in the center of Berlin, Germany

3,137,000 €
8,277 € /m²
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  • Total area
    379 m²
  • Yield
    4.0 %
Details
Property parameters
  • Total premises: 3
  • 1 floor
Financial performance
  • Annual income: 125,469 €
Tenants
  • Fully let
  • End of lease: 2024
Transaction costs
  • Notary (state registration): 1.5 %
  • Acquisition tax: 6.0 %
  • Broker: 6.0 %
Features
  • Street retail

Three retail units in Berlin-Mitte.

Description

The total floor area is 379 m², of which:

  • the first unit is 179 m²;
  • the second unit is 62 m²;
  • the third unit is 138 m².

The properties are situated on the ground floors of two neighboring buildings.

Each unit has a storage room in the basement.

All areas are leased out to three tenants.

Financial performance

Absolute annual income is 125,469 €.

The current yield of 4%.

Tenants

Tenants are cafe, bicycle shop and children goods shop.

The lease agreement with cafe is signed 5 years until 2023 with extension option for 5 years.

The lease agreement with a bicycle shop is signed for 5 years until May 2024 with the extension option for 5 years. The shop has been leasing the property since 2014 and has already used the first extension option.

The lease agreement with children goods shop is signed for 5 years until 2021 with extension option 5 years. The shop also rents two parking lots.

Transaction costs

Notary (state registration) is 1.5 – 2%.

Acquisition tax is 6%.

The brokerage fee is 6% + 19% VAT (in total 7.14%).

Location

The property is situated in the retail corridor in the center of Berlin. Public transportation and metro stations are in the neighborhood.

Berlin is the capital of Germany with the population more than 3.7 million people.

Within EU Berlin is one of the cities with the highest business activity. About 80% of companies in Berlin work in the services sector. Several large corporations, such as Siemens, Volkswagen, Pfizer and SAP, have headquarters in Berlin.

2 airports of Berlin — Tegel and Schönefeld — serve more than 40 million passengers a year.

Today Berlin is a world cultural center and one of the most visited cities on the continent. The annual number of tourists exceeds 30 million people.

  • Property on the map
    Location right down to the building, street or city
  • Other properties
    Other offers nearby

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

Find out more
  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice

Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a shop purchase with a construction loan

Investment vehicle
Shop
Construction loan
Yield per annum
4.0%
8—10%
Investment budget
3,136,725 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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