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Kent and Irene's Building

5-story 15 × 30 m mixed-use industrial building in Zhongshan, Guangdong. Ten design studies exploring floor layouts, commercial strategies, and parking — from individual floors to full-building pro formas.

Design studies

Financial summary

Comparing L1, L2, and L3 strategies across kent5 (baseline) and kent6–9. L4+L5 remain unchanged at ¥439k combined NOI in all scenarios.

L1 options

Option L1 use Fit-out NOI / yr Cap rate Parking
Kent5 baseline 3 commercial bays (café, convenience, service) ¥1,000,000 ¥225,000 22.5% 0 spaces
Kent6 Full-floor parking ¥155,000 ¥0 12 spaces
Kent7 recommended 2 front shops + 8-space rear parking ¥283,000 ¥180,000 63.6% 8 spaces

Kent7 recovers 80% of kent5's shop income at 72% less capital while adding 8 rear parking spaces. Vehicles enter from north roll-ups; shops face south street. SE + W pedestrian corridors on all options. Kent6 maximizes parking (12 spaces) but sacrifices all L1 revenue.

L2 options

Option L2 use Fit-out NOI / yr Cap rate Payback
Kent2/5 baseline 8 residential (4 Airbnb + 4 monthly) ¥1,983,000 ¥190,200 9.6% 10.4 yr
Kent8 recommended 2 front commercial + 6 residential ¥1,920,000 ¥434,700 22.6% 4.4 yr

Converting just S2 + S4 to commercial (massage, beauty, tutoring) more than doubles L2 NOI. Small-format L2 retail commands ¥8–18/m²/day vs ¥1,600–2,200/mo residential.

L3 options

Option L3 use Fit-out NOI / yr Cap rate Payback
Kent5 baseline 32-desk full office ¥1,400,000 ¥132,000 9.4% 10.6 yr
Kent9 recommended 2 front commercial + 16-desk office ¥850,000 ¥541,800 63.7% 1.6 yr

Same pattern as L2: converting the south-facing front to commercial quadruples L3 NOI while cutting fit-out 40%. Restaurant option analyzed but office/retail recommended — avoids kitchen exhaust, grease trap, and tenant-failure risk.

Full building — stacking options

Scenario L1 L2 L3 Fit-out NOI Cap Payback
Kent5 baseline 3 bays (¥225k) 8 res (¥190k) 32-desk (¥132k) ¥8,533k ¥990k 11.6% 8.6 yr
Kent7 + kent2 2 shops + 8 pkg (¥180k) 8 res (¥190k) 32-desk (¥132k) ¥7,816k ¥941k 12.0% 8.3 yr
Kent7 + kent8 2 shops + 8 pkg (¥180k) 2 com + 6 res (¥435k) 32-desk (¥132k) ¥7,753k ¥1,186k 15.3% 6.5 yr
Kent7+8+9 best 2 shops + 8 pkg (¥180k) 2 com + 6 res (¥435k) 2 com + 16-desk (¥542k) ¥7,203k ¥1,596k 22.1% 4.5 yr

Recommended: Kent7 (L1) + Kent8 (L2) + Kent9 (L3)

The "retail stack" strategy — converting the south-facing front of L1, L2, and L3 to small commercial units while keeping the rear and upper floors as office/residential — produces the strongest building pro forma by a wide margin.

Total fit-out
¥7.20M (¥1.33M less than kent5)
Annual NOI
¥1,595,500 (+61% over kent5)
Building cap rate
22.1% (vs 11.6% kent5)
Simple payback
4.5 years (vs 8.6 kent5)
10-yr cumulative NOI
¥18.3M (vs ¥11.4M kent5, at 3% growth)
Covered parking
8 spaces (vs 0 in kent5)
Commercial tenants
6 storefronts on south facade (L1–L3) forming a vertical retail corridor