The current opportunities in commercial property
Some solid results are surfacing for commercial property in growth hotspots – so how can you capitalise?
Data from CoreLogic’s Richmond Cityscope showed some strong results for commercial property sales and yields earlier this month. For example, sales recorded in the three months to August 2019 totalled $17.4 million, an increase from the $13.9 million recorded in the three months to May 2019.
For buyer’s agent and founder of InvestorKit Arjun Paliwal, results like these are indicative of other growth and investment opportunities in the commercial property market.
“Broadly speaking, commercial property sentiment is rising. NAB’s commercial property index confirmed this with a 9 point rise in the second quarter of the year,” he told Smart Property Investment.
“Similarly to residential property, incoming supply is a good gauge of market strength. Office and industrial confidence remains high due to significant drops in incoming supply/activity. As a result, rent and price rises over the coming years are expected. Low interest rates and lenient finance terms and assessment methods for commercial investors also mean funding is accessible,” he said.
However, Mr Paliwal noted some drawbacks for investors to be aware of in the current market.
“Retail confidence remains weak especially with where current spending is nationally,” he said.
Mr Paliwal wrote about how investors can work out what’s hot – and what’s not – in commercial property investing. You can read about his strategy and ideas in full here.