‘Industrial Estates’ have been around for a long while, however in recent times strata titling within industrial and commercial estates has become a talking point amongst many developers.
Traditionally these estates have been developed as industrial land blocks one next to the other. There is nothing binding these land blocks together. This raises the question as to who is responsible for upkeeping the land and ongoing maintenance.
Maintenance of these estates is entirely dependent on what each owner or tenant decides to do – and in some instances that might be nothing. However, failure to maintain standards can have a negative impact on the developer’s ability to move stock that they have held, or future stock they may develop.
For developers to preserve the value of their development, strata titling allows the following advantages:
- Each lot owner pays their own council rates and water rates which means they are not funding services used by other companies.
- The Community Management Statement can look after entry statements. These entry statements are commonly used as a promotional tool in the marketing of new residential estates.
- The Body Corporate is responsible for the maintenance of facilities and gardens and grounds (footpaths and gardens)
- Ability to have roads as either private or public.
- Land tax is much lower due to the valuation of the estate being split between all owners.
- The bulk of property maintenance and communal services such as security and common area maintenance is divvied up by its owners.
- Delivery of scheme in stages.
Perhaps the biggest benefit however is the ability to further subdivide lots to create subsidiary schemes. This provides the owner, of larger lots especially, to subdivide their lot and sell of stock they may no longer require. This subsidiary scheme would then essentially be a “lot” within the original scheme but would also have its own community management statement with each lot its own set of entitlements.
If you would like to learn about the further advantages of community titling your next industrial or commercial estate, please do not hesitate to give us a call on the below.
0411 352 409
0438 318 565