Before you buy a pre-leased shop

A pre-leased shop is priced on its rent, so the lease is the asset — read it before the building.

Check the registered term and lock-in, the escalation clause, and the exit notice. Then check arrears and how the rent has actually been paid, not just what the agreement says.

Finally, compute yield on the price you will really pay, including stamp duty and brokerage. That number is usually half a point lower than the one you were quoted.