When it comes to purchasing or leasing a commercial property, one of the most important factors to consider is the future of the area. Will it go bust in the next few years? If so, you may find yourself in a situation where you're locked into a lease or sitting on a location without the necessary foot traffic required to bring success to your tenants. This isn't good for either party, and can lead to some very sticky situations further down the track. Instead, you to identify areas that are on the cusp of a significant 'boom'.
Booming areas have all the elements required for commercial success – including the likes of easily accessible transport and a wealth of retail opportunities that can draw customers into an area for a day of retail therapy. Of course, not all of these are applicable to every business, but in general, when an area is growing, companies with a local presence have a chance to do very well. There are few places in Australia that embody this boom more than the Gold Coast – a region currently experiencing a huge surge in the popularity of commercial property.
So, what does this mean for the commercial and industrial property sectors?
With the upcoming Commonwealth Games in 2018, a lot is happening on the Gold Coast, and Surfers Paradise in particular. Perhaps the most visible embodiment of local development is the light rail network – a $150million development that will make the area more interconnected and accessible. As a byproduct of this system, there is an opportunity for new commercial and industrial hubs to spring up in suburbs previously off the beaten track.
Of course, Surfers Paradise has always been a mecca for tourism, and with additional infrastructure, there's a strong opportunity to capitalise on the interests of visitors to the area. It's not just about out-of-towners though. Data from the Queensland Office of Economic and Statistical Research predicts that the Gold Coast will have the largest population growth of any area in the state, with a whopping extra 133,800 people by 2021. With more residents comes the need for even more infrastructural development, along with a slew of commercial operations to cater to their needs. Keeping this information in mind, the region may just be the most attractive commercial investment opportunity in the country.
With such a strong focus on the rising value of non-residential property on the Gold Coast, there are benefits to be reaped by both buyers and leasers alike. On the buying side of things, the growth is attractive for a number of reasons. Perhaps most importantly, the value of the area is no secret – having been widely publicised through sources like Hotspotting.com.au's Top 10 Best Buys Report. Consistently ranking as one of the most rapidly developing areas of the country, there's a significant demand for businesses to open branches in the region, which can result in higher demand and better prices for those looking to lease out commercial property.
It's not all about property owners though. With the Commonwealth Games expected to draw thousands to the Gold Coast and Surfers Paradise, now is the perfect time to establish a presence and capitalise on the flocks of visitors seeking entertainment and bargains between events. So, if you're looking to embed your business in the commercial fabric of a growing area before the big event, now is the time to secure a lease.
For more information on buying or leasing commercial or industrial property in and around the Gold Coast, get in touch with Ray White Commercial today.