What is commercial real estate ?
If a person was asked ’what is commercial real estate, a flippant response could be ‘Anything that is not residential real estate’ and that would be reasonably close.
We all recognise shops, offices and industrial sheds as commercial but it also covers medical, storage sheds, hotel and motels, infrastructure such as airports, speciality commercial property like child care centres, service stations and car wash.
Therefore, commercial property is any buildings or land used to generate a profit either from rental income, capital gain or a combination of both.
If considering commercial property, it is best to understand the business behind the tenant. That is part of the reason retail and office commercial property is popular with many first time investors in commercial property.
Commercial Property Buyers Agency has a team of experts that will help you understand various processes involved in purchasing your next commercial property.
Types of Commercial Properties
- Retail Stand alone
- strip of shops
- local shopping centre
- large shopping complexes
- Office Stand alone
- strata titled
- high rise buildings in the CBD
our Services
Find Property
Initial Due diligence
Offer and Contracts negotiations
Property Inspection
Due Diligence
5P's of commercial properties
What do you want to achieve? Are you getting more than 3 or 4 % gross return? What type of commercial property should you consider ? What timeframe?
what type of property ? what location ? Budget (purchase price+stamp duty and legals + interest)
Search, telephone agent, ask for information memorandum, perform a mini due-diligence, follow the process including organising building and pest inspection
Appoint property manager, ensure interest and outgoings covered for first month, diarise rent review, check utilities and other amenities including insurance
adding value to the property (ATM, solar and advertising signage), develop vacant land, storage cages in car parks, splitting the floor area into multiple tenancies
Types Of Commercial Properties
Commercial property covers a wide range of properties and listed below are the main types of properties that we search for on behalf of our clients:
Retail
retail strip of shops, shopping centres, bulk stores like Officeworks, A Mart
Office
stand alone, strata, single storey or multi storey
Resimercial
retail, office and residential in one building
Medical
doctors, dentist and allied professionals
Industrial
light, heavy manufacturing, factories
Warehouse
small, bulk, storage sheds
Hotel and Leisure
hotels, motels, caravan parks
Special Purpose
child care, service stations, carwash, bowling alleys
Hospitality
Hotels, motels, caravan parks, restaurants
Child Care Centres
Service Stations
Storage Sheds Buy complex not individual units
Storage Sheds
Car wash
Ice Rinks
Bowling Alleys
Op Shop
Caravan Parks
Restaurants
Motels
high rise buildings in CBD
local shopping centres
Retail
Office
Resimercial
Medical
Industrial
Warehouse
Hotel and Leisure
Special Purpose
Hospitality
Child Care Centres
Service Stations
Storage Sheds
Car wash
Ice Rinks
Bowling Alleys
Op Shop
Caravan Parks
Restaurants
Motels
high rise buildings in CBD
local shopping centres
These properties may be in the CBD of cities, in suburbs or in regional towns
SELECT AVAILABILITY
| Property type | Asking price | Type | Yield | Annual Net Return |
| Motel | 1 million | Long term lease | 6.1 % | ~60,000 |
| Office | $795,000 | 5 years lease + 5 years lease | 7.8 % | 61,745 |
| Cafe | $700,000 | Leased till 2022 with 3 year option | 7 % | 49,000 with annual CPI |
| Farming land | $550,000 | |||
| Factory | $395,000 |