Investing in a commercial property is comparably different from investing in a residential property in terms of revenue. Though both offer a good investment opportunity, commercial property investment, however, comes with more risks compared to investing in a residential property. There are a few real estate companies in Sydney that offer tips and quick guides on investing. LJ Hooker Macarthur offers best deals on commercial property. This is just one of the many commercial property dealers in Australia.
Types of Commercial Property
A commercial property is distinguished as an entity used to make money, either through capital gain or to generate revenue. This type of investment can be subdivided into different classifications according to uses.
- Industrial – This type of commercial property is generally defined according to the “Clear Height” or the actual height from the steel girders down to the floor, which is more or less 14 to 16 feet for smaller properties, and over 40 feet for larger properties. Also, the number of docks and parking area is also considered in classifying a commercial property.
- Retail – This can include restaurants, side-street cafes, small-scale boutiques, and other single-tenant buildings. When considering leasing or purchasing your own commercial space for your business, LJ Hooker Macarthur offers best deals on commercial property. You can also enquire from other real estate experts around Macarthur area or in Australia.
- Office – This type includes single-tenant buildings, multi-storey buildings, and any commercial space that will be used for such purpose.
- Land – Commercial properties are not limited to buildings. Undeveloped lands for lease or sale which are developed into commercial or industrial economic zones can be considered a commercial property.
- Miscellaneous – This type of commercial property includes nonresidential properties which are primarily used as hospitality buildings such as hotels, hospitals, storage developments, and the like.
Usually, risks in commercial property investments come from vacancy rates. The longer the property stays unused or unleased becomes an increasing loss to the owner of the property. Another is the kind of tenant that you have since there are people who sometimes pass through the eye of a needle just to get rid of obligations once a loss is encountered. Visit us at LJ Hooker Commercial Mac Arthur
Things to Consider when Putting Your Commercial Property on Lease
Finding a commercial property middleman can be one great solution to your leasing and selling needs. However, you must also educate yourself about the things to consider when putting your property on sale or lease.
- Consider the property’s location – Pricing your property will be greatly affected by its location and visibility to potential customers. Also, consider its distance to the nearest public transport stations, surrounding businesses, and other similar entities.
- Think of the infrastructure – Check your property’s infrastructure if the building still complies with the national standards.
- Assess your price – Consider pricing your property according to the market price. Check whether it can give you profit over the course of the leasing contract or not.
- Weigh the possible risk and gain ratio – As a business entity, you must have your data assessed and evaluated if you will be gaining over time or not. Because if you aren’t going to reap a good profit, necessary strategies must be done to keep you going.
Enquire of reliable commercial property companies near the Macarthur area and begin your first step in Australia. If you haven’t found a dealer which you can trust yet, LJ Hooker Macarthur offers best deals on commercial property.