How to Boost Your Commercial Property Income Stream

The commercial property market in Brisbane generally provides some good opportunities for investors looking to put their available cash or equity into an asset class that performs well.  Commercial and retail real estate is and asset class with a cycle all its own. 

Brisbane Queensland is typically a location of growth in Australia.  The city and suburbs can usually avoid the high peaks and troughs that you see in the Sydney and Melbourne property markets.  Brisbane on the other hand is at the northern end of the eastern seaboard and the location gives local and international businesses a close and convenient doorway to access the Asian ports, cities, and economic zones.

If you are an investor that is ready to choose a property of quality in Brisbane, there are some things to look at in selecting the ideal investment property by type and location.

Here is a list of property market indicators to regularly watch and assess:

  1. Business cycles that are evident or predicted – Commercial and retail real estate is always changing.  Business sentiment drives property occupancy and enquiry.  It directly follows that government support for the business sectors will build or undermine business sentiment.  Property will be in that cycle of change and churn reflective of Government policies.  Understand what the local, state, and national governments are doing for local commerce and business activity.  What are the ‘businesses of attraction and growth’?
  2. Property precincts for preferred property activity – You have different zones and parts of the greater city that are ‘prime’ locations for enquiry and occupancy. Look for them and understand them. They are typically the CBD, the City Fringe and Inner Suburbs, Port of Brisbane, Eagle Farm, Newstead, and South Brisbane.  In those areas there is plenty of change and rezoning happening where new property developments are allowing the repositioning and growth of the business community.  Changes to property use and precincts are opportunities for the smart investor.
  3. Successful businesses by type and location – You will find that some businesses like to be positioned near ports, seaports, and rail heads.  If you prefer investing in industrial property, then look at those suburbs that are near those transport corridors.  Drive around the suburbs and look at the larger assets, the newer buildings, and the upcoming land developments that could supply more warehouse space into the zone.
  4. Future and current property supply and demand – What are tenants and businesses looking for today with their relocation needs?  You will see some patterns with that, and the active brokers or agents will have a good idea of what the property enquiry is doing and what businesses looking for.
  5. The different property types and the trends of prices and rents – Are prices and rents changing?  How have they moved over recent years?  Look at the last few years and chart the price and rent shifts.  Thriving businesses can afford newer premises in prime locations.  So, everything comes back to business sentiment and change.

These are some of the main indicators that will have an impact on property investment in Brisbane.   Use these factors as ‘guideposts’ to choosing your next investment property.