Finding and adding value to commercial property

By Greg Bell

As the Gold Coast continues to develop both commercially and residentially, there are plenty of questions that keen-eyed investors are asking themselves when it comes to the property market. The potential effects of new transport options, higher land prices and of course the 2018 Commonwealth Games are all of great interest. Above all, though, the question on everybody's lips remains relatively simple – where is the best property value? 

This is by no means an easy answer to find, taking into account not only the rise of certain suburbs over time, but also the types of properties on the market, and what additions can be made to them. On the Gold Coast, this sort of perspective is critical. This can be put down to the relatively limited space of the area. After all, many parts of the region, and desirable real estate like Surfers Paradise in particular, simply have no room left for new developments. 

So then, where can value be found and created? 

Keep an eye on the prize

Of course, as with almost every area of property investment, the biggest potential payoffs are to be found by identifying suburbs that are on the rise. These prized investments can be hugely rewarding, but if you want to take advantage of them, you'll need to have your finger on the pulse of what's happening in the market. This is particularly relevant right now on the Gold Coast, where there's an immense amount of change happening as the economic status of the city changes and more residents arrive. 

For a great case study, look no further than Robina, one of the region's newest suburbs. Only established in 1980, Robina was something of an experiment – one of the very first 'planned communities' in Australia. The area was built from scratch by a Singaporean investor, Robin Loh, and in the space of less than 50 years, the population has already swollen to over 30,000. The model has been adopted in other parts of the country too, but what's made Robina so successful is the strong commercial hub. Robina Town Centre is the largest mall on the Gold Coast, and for many residents, this shopping hub is a big part of their desire to live in the area. As a result, it's become one of the most desirable places to lease commercial property in the region.

As the mall has been heavily renovated in recent years, the nearby homes have risen in value too, from an average of $516,000 in 2007 to $610,000 in 2015. What this illustrates is the symbiotic relationship between commercial and residential properties. Of course, there will always be dedicated retail hubs that people travel to, but for the most part the best value can be found by targeting an area with lots of residents that need commercial services. 

Adding value in other ways

Of course, even if you find the perfect suburb, there are still other ways that you can add value to your commercial property. Not only will this make your investment more valuable when you decide to sell, but it can also provide a unique point of difference in the leasing market. There are countless avenues through which this can be accomplished, ranging from a simple refit to more complex requests for new zoning. 

If you really want to increase the value of your investment, some of the more 'outside the box' options may be just the thing. Are there opportunities to create or negotiate better parking space? If so, this is an absolutely huge factor in commercial success, so can be leveraged to get better rent prices and a better result whenever you want to sell the property

For more information on adding value to a commercial property investment, get in touch with Ray White today.

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