While the focus of the media is on the “ups and downs” of the residential real estate market…
There’s a ‘hidden property boom’ happening now…giving smart investors ‘out-size’ returns, and healthy cashflow.
What I am talking about? Commercial real estate of course.
Now, there are all sorts of reasons why commercial real estate will potentially offer higher returns than residential in coming years.
- You get longer leases from tenants of up to 3-10 years- from tenants who often invest big money in improving the property (because they run their business from it)
- You’ll can generate stronger cash flow – with yields of up to 5-11%. Compared to the 3-5% you typically get from residential.
- And, you can even pass on the costs of maintenance and repairs to the tenant in many cases.
But that doesn’t mean that every commercial property is a winner.
To stay on top of the game, you need to keep up with the trends. That’s how you make smart and sustainable investments.
So here’s a few trends to look out for.
Trend #1 – Warehouse Space Hotting Up
The introduction of Amazon Australia is just the latest in a long line of ecommerce opportunities.
The average Australian now sees opening up their own online store as a viable option.
And that presents an opportunity to real estate investors.
As more people latch onto the ecommerce bandwagon, the demand for warehouse space will increase.
This has already happened in Western Sydney.
And it’s going to happen elsewhere. If you can provide affordable warehousing to the new wave of ecommerce businesses, you’ll potentially make money from your investment.
Trend #2 – Office Space in Sydney and Melbourne Is Booming
The 2018 Australian Property Outlook provides some interesting data.
It says that office space in Sydney and Melbourne will continue to experience a hot demand in the coming years. In fact, this type of commercial property will perform strongly until 2023, at least.
This shouldn’t come as a surprise.
Both cities have experienced a lot of population growth in recent years. Their Central Business Districts (CBDs) also offer employment opportunities for thousands of people.
When cities grow, more businesses move to them. You can provide the office space that they need to thrive.
Trend #3 – Traditional Retail Demand Still Going Strong
The rise of ecommerce stores may change this in the coming years. But for now, commercial retail space still experiences high demand.
This is especially the case in Melbourne’s CBD. Vacancy rates in the city sit at just 3.3%. That’s almost 2% lower than the city’s five-year high.
Low vacancies mean lots of demand and strong growth potential. As a result, commercial retail space owners can profit.
Your Next Best Step?
There are plenty of opportunities for you to make a lot of money from commercial property. You just need to know where to invest.
These market trends offer some hints. But to get the full scoop on the wealth-building opportunities of commercial property come to this new free 1 day event.
Hot Deals Done By Students of Australia’s Commercial Cashflow Queen Helen Tarrant
FREE Commercial Real Estate 1 Day Event: The Hottest Opportunities for Cashflow and Growth in 2018 – CLICK HERE