A common misconception is that property investment is all about residential buying and selling. If you’re interested in diversifying your property portfolio, read on as commercial property investment is the next natural step.
We’re assuming here that you can secure the financial backing and that you have the patience to wait longer for results. Commercial property investment can be an incredible asset to add to the portfolio.
One of the best things about commercial property investment, is that you can use local property agents to manage and maintain it; meaning most of the stress of management is off of your back.
For those looking to make an investment in commercial property, there are plenty of options. These choices include properties in the CBD, warehouse spaces, offices, industrial zones, retail spaces and future business parks.
Getting involved in commercial property is all about what levels of risk you are willing to contend with. You’ll be needing to get comfortable with the state of the market too.
A huge advantage of commercial property investment is the potential to yield a strong return on your investments; especially as the market desires change.
Choosing the best property in an ideal area can deliver great results. If you can, think about investing in property in an area where there is high levels of demand, as this is where you will really make the big bucks.
However, it is important to think about the level of ongoing costs you might experience. For example, maintenance commitments and Essential Safety Measures. Contrast the potential costs of an empty warehouse space, with those of a high-footfall retail store in the CBD.
At this point you should also consider the types of tenants you might have in the building. Good tenants who take care of the property are ideal, especially those whose business will maximise its potential. Your agent should be able to advice you here on the best type of tenant for you.
Many industrial parks will have tenants on a waiting list while the facilities are being built. In terms of retail developments, adding one high-profile tenancy such as a large, big-name company can increase rental yields over a short period of time.
If you’re interested in getting involved in commercial investment, get in touch with your local real estate agent. They will be able to advise you on the nuances of the market, providing you with expert guidance to ensure your investment retains its value, if not increasing over time.
Remember that estate agents will be able to do most of the property management for you, enabling you to sit back and reap the rewards of a well-planned commercial investment.