Just 50 years ago, strata titles – where individuals own a single lot of property within a larger, shared scheme – were a new concept in Australian real estate. Now, there are more than 270,000 strata schemes Down Under, according to the Strata Community Association.
In some Australian cities, strata accounts for more than half of all residential sales and leases and commercial lots are also becoming increasingly popular. Buying or leasing a commercial space in a mixed use strata scheme has a number of merits, but is it a good option for your business?
One of the benefits of mixed use developments is that titles are often less expensive than real estate in the CBD. Square metre per square metre, you'll typically get more for your money in many centres a bit out of the city. Further, you'll be able to enjoy the benefits that come with a given strata scheme, including things like a covered car park for your customers, security guards and CCTV, window cleaning and a full time building manager.
Mixed use properties also have a steady, built-in customer base in the form of the residents or businesses sharing the scheme. In mixed use spaces, business owners and employees can help each other out – the office next door, for example, might visit your restaurant for lunch, and your staff will pop over to the neighbouring cafe on their break.
In a mixed use commercial space, you'll also need to do less marketing to get your name out there. That's because prospective customers will already be visiting your space to go to other shops.
For some businesses, however, mixed use commercial spaces aren't the best option.
The same neighbouring shops who might help your business could also represent competition if they offer a product or service too similar to yours. You never know who will move in either, so even if you start as the only gym in a scheme, a new one could open next door at any time.
Although commercial lots in strata schemes tend to be quite decent in size, floor plans are typically very standardised. While this will work for many shops and restaurants, it might not suit your needs if you have unique needs, such as extensive storage space, a high ceiling, or certain lighting.
When selecting a commercial property for your business, there are a number of factors to consider. Be sure to get the right agent on board early. At Ray White Commercial Gold Coast, our expert team is happy to answer any questions you might have to make sure you find the perfect space for your work. To find out more, reach out today.