COMMERCIAL PROPERTY
Commercial property refers to real estate used by businesses to operate and generate revenue. Investing in commercial real estate can provide opportunities for rental income, capital growth and diversification of an investment portfolio.
Commercial property encompasses a range of asset types, each with its own characteristics, tenancy arrangements and investment considerations.
TYPES OF
At Commercial Edge, we consider opportunities across a broad range of Australian commercial property, including industrial units, warehouses, offices, retail properties and specialised assets.
Industrial units and warehouses accommodate a variety of business, storage and operational requirements. These properties are an important part of the commercial property market and a key area of focus within our property offering.
Office properties include standalone buildings and multi-tenanted office developments. Their investment characteristics can vary according to location, building features, tenant profile and lease arrangements.
Retail commercial property includes individual retail shops, multi-tenanted retail premises and neighbourhood shopping centres. Tenancy mix, location and the structure of rental arrangements are important considerations.
Specialised commercial assets include properties such as motels, childcare centres, medical centres and self-storage facilities. These assets serve specific business or service requirements and may have investment characteristics that differ from other commercial property types.
WHY COMMERCIAL PROPERTY?
Commercial property can offer several potential benefits for investors. The suitability of any investment depends on the property, its lease arrangements, the purchase price and the investor's individual circumstances.
Commercial property may offer attractive rental income and the potential for higher rental yields compared with residential property. Actual returns depend on the asset, purchase price, rental income, outgoings and associated costs.
Eligible investors may be able to invest in commercial property through a Self-Managed Super Fund (SMSF). Borrowing arrangements may be available where permitted, subject to applicable superannuation rules, lending criteria and the circumstances of the fund.
Under some commercial lease arrangements, tenants are responsible for specified property outgoings, which may include council rates, insurance, water charges, electricity and maintenance. The actual responsibilities depend on the terms of the lease.
Commercial leases may run for several years and can include options to renew and provisions for periodic rent reviews. Depending on the lease, rent increases may be fixed or linked to an index such as the Consumer Price Index (CPI). These provisions can help investors plan for potential rental income growth.
Certain commercial properties may offer opportunities to enhance their value through improvements, leasing initiatives, active asset management or development potential. The feasibility and outcome of these strategies depend on the property, market conditions, costs and relevant approvals.
Depending on the investor's circumstances, the property and applicable tax rules, commercial property investment may provide access to depreciation deductions or other tax considerations. Eligibility and outcomes should be assessed with an appropriately qualified tax professional.
EXPLORE YOUR OPTIONS
Whether you are considering an industrial or warehouse investment, an office, a retail property or a specialised commercial asset, we welcome a discussion about your objectives and the opportunities that may suit your requirements.