Interested in commercial property? This can be a hefty investment, knowing what is involved when looking for commercial property and having an understanding of the various property types available is important. Commercial properties come in multiple sizes and shapes with all the different features and benefits.
In this blog we are breaking down the types of commercial properties available to find the best one suited for your property related requirements. But before diving headfirst into commercial property, you need to do your research and this will depend on the area that you are interested in investing in. It's important for any property owner no matter the type, to have a property valuation completed. It's an essential tool to have to keep you ahead of others as well as know where you stand, the current market conditions and overall true value of the property especially in commercial real estate.
A valuation report will help you navigate and determine the path to take and narrow down what you are looking for to have a successful increase in the value, growth and development of your property over time.
What is commercial property?
There are multiple types of commercial properties available, we are focusing on the most popular ones. Including:
- Office buildings
- Retail spaces
- Industrial property
- Warehouses
- Apartments
Use this guide to give you an understanding of each and which one would best suit what you are looking for in commercial property investment.
Why should you invest in commercial property?
Investing in property will become your biggest asset. If you’ve done your research and purchased the right property, you could end up making a good return on your money. Just take all factors into consideration of what type you want to invest in.
Different types of commercial properties
Office Building - found in a variety of sizes and providing different means of amenities. Offices are a great investment for companies that are looking to expand their business. They are also an excellent opportunity for investors who would like to rent out the spaces for additional rental income.
Retail Space – used for various types of reasons like, storefronts, restaurants and shopping centres. This form of commercial property is unique in its range of uses.
Industrial Property – Providing the options of commercial spaces with manufacturing or business-related use. Also in different sizes and types, which gives investors a bigger range of opportunities to choose from. Industrial properties are usually in areas that are way out from central businesses and not as desirable as other property types, this can be especially beneficial for investors as the price to purchase the property will be discounted.
Warehouses – Oldest forms of commerce, like the other properties mentioned warehouses vary in the type and sizes available. With two options available.
Flex warehouse - easily converted and is a mix of industrial and office space.
Bulk warehouse - 50,000 + square meter property, used for regional distribution of goods and services and can be easily accessed by trucks that require entry daily.
Apartments - Mid-rise and high-rise- property options from 5-12 stories containing 30-100 units with an elevator service available. High-rise is found in a larger area with 100+ units and has access to a site manager. Apartment that exceeds 10 stories is considered high-rise and above 40 is a skyscraper.
How to buy a commercial property
You’ve decided on the type of commercial property you’d like to purchase! You need to now consider the costs involved when buying and maintaining your new investment purchase, along with the property availability within your price range, so you can narrow down your search.
Any investment, especially commercial, can bring a high range of returns and longer lease options if done properly. But keep in mind there are drawbacks to any investment property and these assets are not without risks. Which many first-time buyers/investors seem to overlook.
How to buy a commercial property
When buying commercial property, we recommend that you consider these tips:
- Know the different types of properties available and how they will benefit your investment needs.
- Research and be prepared for all the costs involved so you aren’t surprised along the way.
- Know if any renovations or upgrades are needed before the property can be used for your business.
If you’re wanting to invest in commercial property, it’s a big financial decision to make and you don’t want to dive head first into anything that could see you fail before you’ve even begun. Having a property valuer in your corner to help you decide the right property for you to invest in depending on the business and requirements you need will prove to be your best investment yet. A property valuation is an essential tool to have as a property owner.
Our company is an Australian firm trusted in all valuation services, speak with us to see how we can tailor our service to guarantee the best outcome for your future investment growth.