8 Things to Consider in Commercial Property Buying

When you are ready to buy a commercial property in Melbourne, there are things to look for and investigate. As an informed person, you can watch for the ideal property and market conditions to suit your budget. They say that ‘timing is critical’ with some property purchases, and that would be true for all locations and property types.

If you are an investor now considering purchasing a property, there are certain precincts that are in high demand and active; research the property opportunities and the activities. Watch the trends.

City and suburban property markets are different and are driven by contrasting key performance indicators. Consider this list for starters:
• Vacancy factors by precinct and property type
• Supply and demand factors for property types
• Enquiry rates for locations and space to purchase or lease
• The number of properties on the market currently
• The time on market for achieving a sale versus a leasing transaction
• Prices and rents and the variations during the year

So, there are cycles in commercial and retail property. Different times of the year will see modified market conditions; they can be suburb or precinct specific. You can choose the ideal time to move on a property purchase or acquisition in Melbourne.

Looking to Buy or Invest?

If you are a potential purchaser of property in Melbourne CBD or suburbs over the next 12 months, consider undertaking research into these factors:

  1. The market rents that are being paid by tenants for existing leases by building type and location.
  2. Prices per unit of area for the different property types that you are interested in.
  3. The business sectors of the property market that are showing growth or change.
  4. The supply and demand for property currently and the predictions over the coming 12 months.
  5. The overall business sentiment for the city and the suburbs.
  6. The employment rate and the levels of change over recent time.
  7. The growth suburbs for newly constructed buildings, be they office, industrial or retail
  8. The capitalization rate that you can achieve for investment property locally considering values or prices paid and market rents.

When you consider these property facts in the suburbs of Melbourne, there are opportunities to work with and watch.
Over the last twelve months in the city fringe and inner south and east suburbs of Melbourne, the leasing of space in vacant modern properties has been quite active. Demand is still high and supply is variable, thereby pushing up prices on passing income. Yields are under downwards pressure.

The older and less ‘modern’ properties then become a renovation or redevelopment decision and opportunity. Get to know what your location or area is doing in property investment and act. At Melbourne Acquisitions we can help you with that.