At Burgess Rawson, we’re not just observing the market, we’re seeing a movement. An increasing number of savvy investors are pivoting from the ever-changing red tape of residential tenancies to the robust ‘set and forget’ nature of commercial assets.
As a leader in commercial property, we’re well positioned to facilitate this transition, offering a pathway to entry through our knowledge and expertise, to anyone ready to diversify their portfolios.
With their potential for long, secure leases – often with ASX-listed tenants – commercial properties are fast becoming an essential part of the astute investor’s portfolio.
Commercial properties offer a collaborative foundation, with tenants investing in significant fit-outs, signalling a shared commitment to a stable and adaptable business environment. This partnership provides a certainty that stands in sharp contrast to the residential market’s fluctuations and the shifting sands of government policy.
Key considerations for commercial investment include asset classes like fast food, early education, or government-tenanted properties. Crucial too is the strength of the tenant’s profile, and the lease terms.
Commercial investments often offer net returns, placing responsibility for statutory expenses and insurance on the tenants. Most enticingly, they can deliver high returns, with yields typically ranging from 4-8%.
By leveraging Burgess Rawson’s expertise, you’re not just investing, you’re positioning yourself at the forefront of a strategic shift in property ownership.
Our current portfolio boasts a line-up of exceptional assets suited to every budget – ready for investors making the intelligent leap into commercial real estate.
Embrace the opportunity to transform your portfolio. Contact your local team to explore how we can turn your commercial investment aspirations into reality.
“Over time I plan to move into stronger-returning commercial real estate. It does not make sense to hold residential with the costs associated with managing them, and returns of only 3 per cent.’
– Girish Ramkrishani, property investor and Burgess Rawson client who owns five to six residential properties in TAS and VIC, but is now turning his attention to commercial.
Five expert tips to guide your venture from residential to commercial property investment
Understand Market Dynamics
Understanding local commercial market dynamics is essential in crafting an informed investment strategy. Burgess Rawson’s Industry Insights Reports and Market Snapshots offer up-to-date analyses of market trends and conditions. Knowing the nuances of commercial lease terms could be pivotal in selecting a prosperous investment.
Experience Auctions
Attending auctions provides invaluable insights into market prices, yields, and buyer interest. Burgess Rawson’s Portfolio Auctions, held every six weeks across major cities, showcase the largest array of assets for sale, and provide a unique educational opportunity on the auction process. For 22 years our auctions have served as the litmus test of the Australian commercial property market, providing of-the-moment insights to market activity and yield trends.
Know Your Assets
Commercial investments span industries and sectors, each with unique yield determinants. Consider location, tenant profile strength, lease length, land size, development potential, vacancy factors, and rent review structures when evaluating properties.
Diversify Geographically
Commercial property investment isn’t always about location in the same way residential is. Limited high-quality property supplies mean expanding your search to metropolitan, regional, or interstate opportunities is prudent.
Be Prepared for Competition
Premium investments naturally attract attention. Approach the auction well-informed to compete effectively for high-demand assets.