How to Watch the Commercial Property Market for Opportunities

At times like this there are significant changes going on in the commercial property market in Brisbane, and many opportunities around.  If you have spare funds available to put into the purchase of a new commercial property, there is no doubt that good opportunities exist.  It’s a matter of what you are looking for and how much you can spend.

There is a balance being reached between sale and purchase; it’s a process of cycle and value.  The buyers can be selective, the sellers must be realistic on price outcomes, and the available funds to transact a sale are less available than say 2 years ago. The banks and finance groups are more selective on loads and loan qualification.  First time buyers of commercial property need to provide a good financial history and a strong net worth position that underpins the loan position.

What is a Property Cycle in Commercial?

This is a property cycle and we have seen it before; after years of high demand and high prices, the values reach a level where buyers are more selective and slower to react.  In saying that, a quality property will always attract attention; it is just a matter of what price can be achieved.

So many people have said that ‘timing is everything’ when it comes to property investment; today is a case in point.  Now is a good time to purchase given that some buyers are more restricted with funds access and may not be able to move on even the best of properties.  

Well positioned buyers and property investors are in one of the best of markets right now.  They can pick and choose the properties they like; they can strike a reasonable bargain without being too eager or pressured into a transaction.

woman using computer

Things to Look for in Investment Property

So, what should you look for in the property market and with commercial or retail properties?  Try some of these things to monitor in your preferred investment location and or property.  Properties with:

  1. Good tenant profiles and companies or tenants of substance
  2. Good tenant mix that balances customer interest and business sales
  3. Great location for ongoing business
  4. Solid lease documentation that supports the investment factors in the property
  5. Low threat of vacancy over the coming years
  6. A history of solid income growth and low risk of income loss in the future
  7. Good controls on expenditure and budgets to support that
  8. Long term anchor tenants of stability and popularity

So why would a property investor sell one of these great investments?  Simply because right now many property investors must sell; they must reposition their financing and larger portfolio.  This is a great opportunity for those that can buy commercial and retail property.  Timing is a good leveller for those that can wait for the cycle to come back.  Right now, it’s back; it’s a buyer’s cycle in commercial property.  It is a good time to invest in commercial and retail property right now and over the coming 12 months.