How to Find Locations for Commercial Real Estate That Will Outperform in the Long Term

How to Find Locations for Commercial Real Estate That Will Outperform in the Long Term

The primary purpose of a commercial venture is to attract maximum buyers, and busy precincts are the best places to grab their attention. Visibility and exposure of the property ensure a higher concentration of customer walk-ins and brand recognition. Naturally, location becomes the most significant part of setting up a business. Consequently, those commercial properties for sale in Australia which are strategically located are in high demand.

Among these sought-after locations, there are some which score over the others. While some of the investors look for affordability, others wish to find a grand structure within the CBD. Easy accessibility, community area and amenities are also taken into consideration for comfortable operations and congenial work environment. The infrastructure and proximity to restaurants and cafes are other important factors which affect the buying decision of investors as they attract the best workers in the industry.

Whatever requirements you have, at the end of the day, it all boils down to getting the right return on investment. Investors, whether private or institutions, are looking for high-yielding assets which are ascertained by floor space, lease period, rent, etc. That is why most people put their money on commercial real estate that will outperform in the future. So let us take a look at the cities across the country which promise high yields to help you invest wisely.

 

Sydney 

In terms of both capital gains and rental growth, Sydney will rule the roost among all the Australian cities in the coming years. The strong demand and supply, along with low vacancy rates, will make the rental rate go upwards. Although the house prices have witnessed a downswing, the picture is not so grim for commercial properties. Low unemployment rates and an increase in the number of jobs have maintained the strength of the commercial sector.

Many industrial structures are also being built in the city along with warehouses for retail giants and e-commerce companies. Amazon has built a 43,000sqm facility in South West Sydney, and Australia’s first multi-level warehouse will come up in the city by 2020. The yield may have gone down with the reduction in house prices and a similar path is being followed by the commercial property segment.

However, Sydney will prove beneficial for long-term investment, and that is why many developers are turning into investors. They are purchasing properties with low yields as they are looking at the bigger picture which promises excellent returns after ten years. To find an ideal commercial property for sale in Sydney, visit here

https://www.commercialproperty2sell.com.au/real-estate/nsw/sydney/

 

Melbourne

The highly urbanised metropolis of Melbourne tops the charts when it comes to investing in commercial real estate. The downslide in the global equity markets in the last month of 2018 and the declining house prices in Australia at the beginning of the year had put fears of property market crash in the minds of the people. However, the country has retained its stronghold as a major investment destination despite the credit controls.

The active job market has ensured a rising demand and low vacancy rate in commercial real estate which will continue till 2021 in Melbourne till the new developments will come into the picture. The vacancy rates will continue to decline for the next two years while the rents will keep increasing for both prime grade and secondary grade office properties. Also, being the technology hub of the country, Melbourne has become the ideal choice of ICT companies to set up their corporate offices. Thus it is one of the best places to invest for long-term gains. Have a look at some profitable opportunities for commercial real estate in Melbourne here

https://www.commercialproperty2sell.com.au/real-estate/vic/melbourne/  

 

Brisbane

In 2018, Brisbane recorded the most significant sales volumes in office transactions in a decade with offshore investment reaching $1.77 billion. The leasing market has improved as white-collar employment has been amplifying in the city CBD. The job market is expected to keep growing with over 2000 people joining the sector every year till 2025. Thus the premium and first-grade office spaces will be occupied, and commercial real estate will continue its upward swing for another ten years.

The long-term leases are being offered with lucrative incentives, which have led to increased demand for premium spaces and secondary grade assets. Additionally, Brisbane has been leading the way with higher absorption of co-working properties in the CBD. With no new supply of office spaces till 2022, the vacancy rates will carry on their downward spiral. To have a look at the latest additions to the list of commercial real estate in Brisbane, click on the link below

https://www.commercialproperty2sell.com.au/real-estate/qld/brisbane/

 

Perth

Investments are all set to increase in the city as various projects are coming up in the region. There has been significant growth in white-collar employment in the past year and the mining sector has recovered offering jobs to many more. The vacancy rates are moving slow, but the yields have been steady. Foreign investors are still keen on investing in the CBD, and there have been major transactions in the past one year. Besides the big cities, many small investors are targeting the regional areas which are gaining precedence due to high immigration levels and infrastructure support. If you also want to become a part of this growing market for commercial propert for sale in Perth, click on the link given below

 https://www.commercialproperty2sell.com.au/real-estate/wa/perth/

 

Adelaide

The abolition of stamp duty for commercial transactions from July 2018 led to record high sales in the Adelaide CBD totalling to $889.875 million. The transactional cost for commercial real estate has gone down, which has boosted the confidence of investors. The capital flow included offshore investors from Singapore, as well as domestic investors comprising both private and institutional investors. The yields have been going strong for a long time now with the broadening of the South Australian economy. The leasing market will be supported by a positive demand and limited supply in the coming years. Have a look at the latest opportunities for commercial property for sale in Adelaide here

https://www.commercialproperty2sell.com.au/real-estate/sa/adelaide/

 

Canberra

The investment volume for 2018 was a little lower than in 2017, but still, there were ample million dollar transactions. The leasing market has tightened, and the repositioning of old assets is bringing residential and hotel accommodations to the CBD. It will further improve the commercial activity in Canberra in the coming years. Many new projects are emerging in the area, which will drive the demand for high-quality assets and long-term leases. To have a look at the latest additions to the list of commercial real estate in Canberra, visit

https://www.commercialproperty2sell.com.au/real-estate/act/canberra/

 

Conclusion

With a happening trade industry and a stable economic environment, commercial real estate for sale in Australia has always been an attractive proposition for investors. While the housing market may be witnessing a downturn, the major cities in the country offer the best return on investment in the next ten years.        

 

Author Info Sophie Barrett

Sophie Barrett is an experienced real estate marketing professional with a specialisation in commercial property market. She has a Masters degree in marketing from the esteemed Melbourne Business School and has several property management certificates to her credit. Her shrewd marketing policies and business acumen have led to the most rewarding property deals in the major capital cities of Melbourne, Sydney and Perth. She is a popular name in the real estate market and has been serving the industry for almost two decades now. CommercialProperty2Sell is proud to partner with her for some astute discussions and advice on the booming sector.