The pandemic may still be on and has affected sales in different business, including real estate, Perth’s commercial property market is bouncing back despite the initial fears of the pandemic derailing sales for a while longer. The sales actually started moving again as early as April last year.
Two major commercial deals were closed by JLL in April 2020. In another case, a two-level boutique office building was even sold off in the heart of Leederville’s tightly-held commercial and entertainment precinct. Even in the middle of lockdown, the was still a lot of interest from investors which then resulted in a contract being signed just after two weeks the property was listed.
There have been more reported accounts of commercial properties being sold and being put in the market since then. So it’s a good sign that you can pretty much proceed to your investment plans. Just make sure to proceed with the same caution you would when investing in anything. Do your research and take advantage of 3D virtual tours of the property listings to check out all the properties that you’re interested in. You won’t just enjoy the convenience of being able to tour the places virtually which will allow you to make a shortlist of the ones that you find fitting to your requirements. But you will also feel safer, we’re still under a pandemic after all, since you get to cut back on the sites you actually need to visit in person and the people you have to interact with.
Before you begin, here are some tips to guide you choose the best type of commercial property to invest in Perth especially if you’re a first-time investor.
Retail
Strip shops are usually the ones most first-time investors go for. These are retail stores that will sometimes include office or residential units upstairs. If you’re looking for a more affordable retail version of these properties, strata retail is the one because you usually don’t pay for a land component. The usual price of these properties is under $1 million that generally yields under 4 percent.
Office
If you’re a first-time investor, fund manager, and/or a passive investor looking for premium rental yield commercial property that is also considerably priced lower, strata-titled offices are the way to go.
Aside from the rental yield and lower required investment, this type of property is popular with investors because they usually don’t need much maintenance. So it’s a low-risk investment that is perfect for investors who are just starting out. But it’s even better if you can find strata offices that are encumbered by a lease with a strong covenant aside from the standard good location, condition, and statutory outgoings.
Industrial
Aside from being considered an affordable entry-level investment, what’s good about industrial strata units is that you also get the opportunity to exchange early on in the piece and you also have the flexibility to lease the units while they’re still under construction.
Moreover, from the beginning to the end of the project, it’s also possible to capitalize on some capital growth. You may even enjoy better yields than what you get when you put money in the bank because of the high degree of rental growth for smaller industrial units lately.
There’s no question that the market experienced a pause throughout the early stages of the pandemic. But judging from the depth of the buyer pool of a large workshop landholding at 41 Miguel Rd in Bibra Lake, a deal that included a 10-tonne gantry crane in-situ and closed by JLL, you know the confidence in the Perth market is back.
Evidence of the Perth market bouncing back aside, commercial real estate is just a good place to invest in. You just have to do your due diligence to understand the business you’re trying to penetrate and know where it’s best to start. If you have needs or preferences that have become non-negotiables for you because of the current situation, better to check out listings with Matterport 3D virtual tours first. This way you can find out right away if any of those properties fit the specifications that you want. These virtual tours provide realistic virtual environments along with all the information regarding the property, so you can rest assured that it will feel like you’re visiting the properties in person.
