Developing commercial property for office space

Are you a new business entrepreneur looking to help create a space that other young (or old, for that matter) businesses can work within? The perfect office space is a key component to the success of a business, after all. So how can you locate the ideal piece of property?

We caught up with Director of Ray White Commercial Gold Coast Greg Bell for a little bit of insider information on the process on how to best develop commercial property for office space. 

Assess the location

We asked Greg what everyone's first step needs to be when it comes to finding an ideal piece of commercial property, and explained that it all comes down to the tenants. What do they want? The short answer?: Location.

"You really should consider the location first. It should be a CBD style location rather than a residential, however, it can be on the fringe, therefore the land cost is less. You don't need to be right in the centre, but you do want to be close to transportation to make it easy for your residents. Amenities also include being close to good parking or even shops where the tenants can grab a quick lunch," said Greg.  

He also emphasised that developers shouldn't necessarily be looking at established land. In fact, they might even be better off looking into building from the ground up. This gives you the advantage to design the building, but also includes a fair amount of tax deductions.   

Wait for the right timing

The right location won't always be there waiting for you, Greg continued. You have to wait for the ideal time to get the piece of property or land. In the case of the Gold Coast, this time is right around the corner. 

"The timing for somebody to acquire land is within the next six to nine months. I believe there will be a shortage in A-grade office land. And, as the real estate market in the Gold Coast improves, we will begin to see more competition for these spaces." 

If you haven't started scouting out the perfect piece of commercial property, it's time to start now. 

Designing the perfect space

Regardless if you are starting from square one or taking on an established piece of property, the space needs to be easy for businesses to adapt to. This means the space should easily be able to be renovated into big or small area depending on what the incoming tenant needs. That said, it will help your design plans to know what type of tenant you are targeting to build an appropriate space. Greg also shared his thoughts on how to do just that.  

Getting the right tenants 

Attracting the right people begins with a strong leasing campaign. While construction is underway, the property manager has to put out ads to start sourcing for tenants. If the building is in a popular area, this could be as simple as putting up a sign. But often also includes online and paper advertising as well.  

Finally, we asked Greg for help determining what the best mix of tenants would look like. You're looking for A-grade tenants, ideally these will be people who will be taking up a big space with a proven responsible track record. 

"You need to be selective to find a complementary list of tenants," said Greg. This means you will want tenants who can use each other, for example, one space filled by dentists and another by lawyers and perhaps even a first floor filled with a coffee shop. They will all benefit from each others businesses and in turn keep your building filled. 

If you have any questions for Greg, or want to chat with any one of our knowledgeable commercial property real estate agents, contact our team today. We'd love to help you get started today.