Exploring the ideal commercial property for your next investment
Diverse in utility and sizes, commercial properties offer unique characteristics and potential uses, making it crucial to grasp the various asset classes before venturing into commercial real estate investment. While the prospect of extensive research, administrative tasks and financial commitments might seem daunting, it doesn’t have to be. Here’s a concise breakdown of different property types to guide your investment decisions based on your specific circumstances.
Office spaces
Commercial office spaces vary widely, from high-rise CBD buildings to smaller suburban suites, available for leasing as entire buildings, floors or individual offices. Choosing the right option hinges on your target tenant and considerations like sectors with employment growth, adaptability to hybrid work environments, (especially post-COVID), and workforce accessibility.
Key considerations when evaluating office spaces:
- Proximity to food retailers, public transportation and parking
- Self-contained features like offices, kitchens, toilets and air conditioning
- Potential for capital expenditure to upgrade the quality of the building or add additional lettable area.
Industrial spaces
Designed for manufacturing, storage, or distribution, industrial spaces range from small warehouses to extensive industrial parks. Typically located in areas with easy transportation access, these properties can be leased as entire buildings or individual spaces.
Key considerations when assessing industrial spaces:
- Sufficient roof height and clearance for racking and warehousing
- Easy access for heavy vehicles and machinery
- Availability of an external loading dock
- Adequate parking for staff.
Retail spaces
Catering to businesses selling goods and services to the public, retail properties come in various sizes, from small shops to large malls. Often located in high-traffic areas, they can be leased as entire buildings or individual retail spaces.
Key considerations when examining retail spaces:
- Location in a growing, densely populated area
- Existing tenants with ongoing leases
- Onsite parking and nearby public transport hubs
- Well-maintained public amenities
Mixed-use buildings
Combining retail, office and residential uses, mixed-use buildings offer a variety of amenities. Ranging from small buildings to large developments, they are commonly found in urban areas.
Navigating the diverse commercial real estate market requires a solid understanding of available property types. By aligning the type of property with your investment goals, you can make well-informed decisions and optimise your return on investment.