Thinking of investing in commercial property? Whether your budget is big or small, here are five tips to help you on your way:
1. Gauge the quality or underlying value of a building when evaluating a commercial property investment.
2. Establish whether the rental levels being achieved are above or below market. This will determine whether current yields are sustainable or perhaps could be improved.
3. Evaluate the covenant and strength of each tenant occupying the asset with a view to extending leases with those tenants that pay on time.
4. Invest in a specific niche or sector. Alternatively, a strategy could be to diversify and invest across the various sectors i.e. office, retail or industrial.
5. Know when to hold on and know when to let go. Ultimately, building a successful commercial property portfolio requires that the investor holds onto good investments and disposes of the troublesome or inefficient ones.
In order to gain exposure to investment opportunities in your area, we recommend engaging with a reputable, qualified broker.