Investing in commercial property can lead to massive returns, but only if you pick up the right property in the right place. You'll have a hard time filling your space if it's in a low traffic area or is impractical for your target business owner.
Commercial properties on the Gold Coast already have great location going for them, but there are other ways to spot if a commercial space will be profitable.
Although you may have spotted the next big thing, chances are if no one else has set up shop in a given location, there's a reason for it.
When people go out to do their shopping or run errands, they often want to tick off several boxes on their to-do list. That's why people like to go to centres where you can go grocery shopping, drop off your dry cleaning and deposit money at the bank in one go.
For most businesses, being close to shops is important, so before picking up a property, make sure it seems to be in a commercial area that gets a decent amount of foot or vehicle traffic.
Neighbours, however, can also be a double-edged sword. While a super busy establishment might bring in some traffic, customers could also take up all of your parking. You'll also want to think about noise. Something like a gym upstairs – where there will be loud music and clunky weights on the floor – will be off putting to your prospective tenants.
While it's good to be next door to busy businesses, you don't want your tenants to suffer as a result. Make sure you properly investigate first and think about what it will really be like to operate in a given property.
In commercial and residential real estate, very few hot spots just pop out of nowhere. Before taking the plunge on a given property, make sure you do your homework.
You'll want to conduct some research on a number of factors, including:
This information will help you understand a given precinct's direction. If, for example, several businesses have gone under on a given street, you probably don't want to purchase a property there.
If a street looks a bit quieter, but you find out there have been some recent sales there, you may be looking at a great opportunity. At Ray White Commercial Gold Coast, our expert agents can help you find out about recent commercial sales and leases.
Make sure the property lends itself to different operations
A laundromat won't easily convert into a yoga studio or a hair salon, so make sure when you're shopping for commercial spaces, you select one that could lend itself to a variety of different operations.
This not only cuts down on the renovations you'll need to do, but also opens you up to a much larger base of tenants.
A versatile commercial space will include a number of features, including:
Before purchasing a commercial investment property, ask yourself, 'do I have the expertise for this?' The answer may be no. Many investors build their residential portfolio for years before dipping into commercial.
That's because while commercial investment properties offer high rewards, they often come at a high risk. With the right advice, however, any investor can make a sound decision on purchasing a good commercial property.
At Ray White Commercial Gold Coast, our team wants to help you grow your portfolio to include commercial real estate. We'll be by your side to help you select the perfect property and to help you manage it as well.