Commercial Property Buyer's AgentMelbourne's leading commercial real estate buying service
RealCommerical Journalist Euan Black said “Everyone from your solicitor to your barista has an opinion on where ‘residential’ prices are going” but “ask a random passer-by what they know about the ‘commercial’ market and you’re likely to be met with little more than a scratch of the head.”
Buying commercial property is more complex than buying residential property and for investors or business owners it can be a daunting and time-sapping task. Get it right though and investors can enjoy higher rental returns (than residential property) with lower out-goings. And for business operators, the right building or the right location can directly impact growth and profitability.
Knowing what to buy, where to buy and how to complete research and due diligence are crucial in securing the best possible commercial property for your needs.
Business Operators and Investors
A business operator will usually have very specific requirements for a commercial property. A wholesale distributor of goods will require a very different premise and location to a hairdresser, for example. The investor has a much more diverse pool of options and they need to consider more factors to maximise capital growth and overall returns.
For business owners and investors the physical layout of the building, fit-out and adaptability, location and its proximity to other commercial properties is vitally important. For investors, rental yield, current tenancy, type and length must also be factored in.
As a business owner, many of the factors that are important to an investor are important to you, and if you can buy with an investor’s eye it will set you up to be in the best possible position for selling in the future.
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Risk versus Reward
More and more people are adding commercial property to their investment property portfolios. However, due to the complexity of purchasing commercial properties and the increased number of factors to be considered, usually, investing in commercial property results in bigger risk.
However, with greater risk comes greater reward.
Commercial property has the potential to provide higher rental returns and long-term tenancies and is particularly attractive if you are looking for strong income and/or want to diversify a property portfolio that is already exposed to residential.
We have broken down the key pros and cons of investing in commercial property.
When you buy the right commercial property you can enjoy:
1. Higher rental yields
2. Longer leases
3. Stable and reliable long-term tenants, such as large corporations and government departments.
4. Fewer outgoings including rates, insurances and maintenance (which are generally payable by the tenant).
1. Higher interest rates usually apply
2. More complicated legislation applies
3. Litigation can be more common and can be expensive
4. Tenants are better informed
5. The economy has a greater effect on commercial purchases (e.g. businesses can go bankrupt in contrast to residential property where tenants still need a place to live)
6. Vacancies can be longer
7. Rental decreases can be greater than in residential
8. GST, CGT, Depreciation and Land Tax implications
9. Unexpected issues (e.g. asbestos etc.)
Investing in commercial property also usually means:
- Paying a bigger deposit to lenders
- Higher vacancy rates
- Lower capital growth
Buying commercial property is more complex than buying residential property and can cost inexperienced investors significantly if you get the purchase wrong. The value of commercial property is affected by many factors like rental yield, length of lease, type of tenant in place, and the fit-out and adaptability of the building. Because of the complexity of the transaction, securing the purchase of a commercial property also requires very different negotiations compared to residential property transactions.
Like any investment decision, it’s important to weigh up all of your circumstances and take advice from trusted professionals before you decide whether buying commercial property is suitable for you.
“I would highly recommend Antony and the National Property Buyers’ team to anyone who is considering purchasing a property.
Their knowledge of the property market is outstanding, but equally as important for us, Antony & the team quickly earned our complete trust and respect for the way that they managed our process.
The outcome that National Property Buyers achieved for us far exceeded what we thought was possible and for that we are massively thankful. We will definitely be using their services again.”
What to look for if investing
So what if you’ve weighed up the pros and con’s and decided to invest in commercial real estate.
As with any investment, it is crucial to get your due diligence right and part of that is purchasing the right property from the get-go.
To minimise your risk and maximise your reward we share the top eight things to look for in an area before even considering the property:
2. Areas where residential developments are earmarked
3. Quality tenants OR the ability to attract quality tenants
4. Suburbs that are experiencing gentrification
5. Councils that have significant expenditure in place to improve infrastructure
6. The population growth of an area, which impacts the amount of foot traffic (which means more likely rental increases)
7. Car parking – where is it and how many spaces
8. Proximity to supermarket/shops and transport for historical growth reasons.
Our commercial property team has significant knowledge of the Melbourne property market and will save you time and money by finding the right commercial property, in the right location, at the right price with the right conditions.
Fill in and submit this online form if you’d like to tell us more about your plans.
Why Choose Us
We are highly experienced and specialists at buying commercial property and can guide you through all steps to ensure you are making the right decisions.
Whether it is sourcing an off-market property, assessing the true value, or negotiating the best deal possible, we are very confident you will be impressed by the level of service we provide, plus we’ll save you time and provide you with the peace of mind that the decisions you make are well informed, good decisions.
“I first went to meet with National Property Buyers after looking for an investment property for about 6 months.
I had absolutely no idea where to start and what I should be looking for. After enlisting the help of NPB I had purchased my first investment property within 2 weeks.
Their online property hub and open communication are first rate and made searching for the correct properties so simple and easy. From going through the property for the first time to the auction and final inspections they made it all so easy and had all my questions answered before I asked them.”
Our meticulous approach to search for all available opportunities, whether they are publicly advertised or off-market, ensures our clients are kept abreast of all available options.
We have the skill set to assess the value of the property, including reviewing planning restrictions, design issues, and re-development potential of properties.
Whether you’re an investor searching for a new property investment, or a business operator looking for your ideal premises, NPB can tailor a service that meets your needs.
Our negotiation skills ensure you get the best possible price AND conditions, which are equally important when it comes to buying commercial property.
Types of commercial property we buy
There is a vast range of commercial property types in the market. Some of the ones that we purchase for our clients are:
- Retail – such as hairdressers, chemist, bakery, cafes.
- Small Speciality – such as pharmacy, medical suites or law offices.
- Large Specialty – such as franchise food chains, hardware stores or supermarkets.
Below is a selection of case studies on commercial properties that we have secured for past clients. Read about how we exceeded their expectations and delivered them the ideal property for their needs.
Full Premium Service
1.5% to 2% (+GST)
of the purchase price
Our full service (search, assess and negotiate) includes; regular searching , sourcing off-market properties, unlimited inspections, full independent assessment reports and negotiating the successful purchase. We keep working until your ideal property has been purchased!
Generally, this service is between 1.5 and 2% (+GST) of the purchase price. This fee is made up of an initial engagement fee of $2,000. The remaining balance is paid on success, when we have secured your property (called the ‘success fee’). This means the engagement fee is part of the total fee and not in addition.
We also offer a ‘fixed fee’ option.
Assess & Negotiate
0.75% to 1% (+GST)
of the purchase price
The assess and negotiate service is suitable if you’d like to do the property search yourself or have already found the property you would like to buy.
We inspect the property and prepare a detailed property report and price analysis and negotiate the purchase on your behalf.
Generally, this service is between 0.75 and 1% (+GST) of the purchase price.
This fee is made up of an initial engagement fee of $1,000 +GST, with the remaining balance paid on successfully securing your property (called the ‘success fee’).
We also have a ‘fixed fee’ option.
Auction Bidding or Negotiate Only
starting at $500 (+GST)
Negotiating with Sales Agents to get the best result for the buyer can be a challenging task, particularly for the inexperienced. This service is for those who are uncomfortable with or maybe just unavailable for auction bidding or private negotiation.
Auction bidding or negotiate only fees are generally fixed upfront and an engagement fee is payable in advance of auction day or negotiations.
The initial engagement fee is between $500 and $1000 (+GST). And only upon securing the property is the success fee paid. Generally, for auctions the success fees is between $500 and $1000 depending on requirements.
There is no charge for an initial consultation with us and it’s completely obligation-free. We use this consultation to fully assess your specific requirements and answer any questions you may have about our service. Or give us a call on 1300 500 555 if you have any questions about our commercial property buying service – we’re always happy to have a chat about property.
Melbourne Office Details
Address: 333 Whitehorse Road, Suite 2, Level 1, Balwyn VIC 3103
Freecall: 1300 500 555
Phone: +61 3 9836 3322
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Commercial Property Buying Agent
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