ASKING SEAN #062 | RENTAL DIFFERENCE FOR SHOP OFFICES

In this episode, we will answer questions from Kit for his university assignment. *hahaha.  Shop-offices were once known as shop houses, and the term changed after many people exploit using residential loans to buy these shops.  The rental difference between ground floor and upper floors are caused by access. It's just easier to just walk into the shop on the ground floor in compared to the upper floor where you need to walk up the flight of stairs. And it's usually narrow, dark, and stuffy, hence the rental upstairs are always cheaper. It also depends on the tenant profile. Ground floor tenants are usually F&B businesses or store fronts because they need that direct access. On higher floors are usually office desk and appointment based type of businesses, for eg hair stylist, dentist, lawyer office, tuition centres and etc.  In between corner and intermediate lots, the difference in rental is caused by the frontage (exposure), size of the unit, the opening sides of the facade and the location of the shop where it may affect the type of business to be operated.