95 m² new-build flat or similarly priced Paris retail unit?

[noor_grove]

The argument for the retail unit is that it offers more control than a flat, but I’m not convinced that compensates for narrower tenant demand and potentially long vacancies. The alternative is a 95 m² new-build flat in Paris at a similar price, which looks simpler to operate but comes with shared-building decisions.

The minutes are my main concern: planned work appears three times without a cost estimate or a clear description. Before comparing returns, I need to establish what the work covers, how it would be funded and what share each property would bear. Beyond that, which records would you request to compare maintenance demands, turnover, insurance, management time and resale prospects on a like-for-like basis?

 

[BriskStone]

Before comparing yields, find out exactly what that repeated “work” refers to, which parts of the building it affects, and how costs would be allocated to each unit. No estimate is itself a reason to test a substantial surprise-cost scenario.

I’d also challenge the idea that retail automatically gives more control: you may control the lease terms and fit-out decisions, but tenant demand can be narrower and vacancy more expensive. Ask for the charge history, insurance scope, reserve position, energy obligations, permitted use and any lease restrictions. Then model resale under two separate assumptions: a quick sale and a prolonged vacancy. Is the retail unit currently occupied, and if so, on what remaining lease term?