Maximising your return and your underlying value with a commercial property.

Your wealth and capital are resources that you should wield efficiently when choosing a commercial investment property.  Whether it’s your first investment property or tenth, the same questions apply: How do I find the right commercial or residential investment property, in the right location, with the best tenants, and with the highest potential for long-term financial success?

We are going to give you an overview of how a good commercial real estate agency can provide you with honest advice regarding properties and markets.  Here are five ways an experienced agent can help you navigate the commercial real estate market:

1. Buy investments in areas that are going to experience growth: Commercial real estate growth depends on geographic factors such as employment hubs, distance between competing properties, and exposure to high traffic areas.  Knowledgeable agents can help you narrow down the specific factors from street to street, since success may depend upon local expertise and insight. 

2. Knowledge of an experienced agent who has inside information: A good agent can provide you a list of potential properties.  But a great agent can help you find the right property based on their expertise and insights into the local market.  The exceptional agent will understand the market’s history, demographic information from street to street, how to attract new tenants, the best contractors, and future developments. 

3. Understanding demographics and location trends can assist with this acquisition process: Great agents understand the science and art involved with commercial real estate markets.  Understanding demographic trends depend upon keeping current with statistical data and estimating the demand factors involved with commercial properties.  An expert agent can help you understand how these factors affect your property and be your trusted guide to achieving your investment goals. 

4. Invest in buildings that are considered economy proof or can realise their full lease term: The economy moves in cycles and investors must consider how well their property can weather recessions or changes in market demand.  Will your property require significant capital improvements?  Is it considered to be in a hotspot area i.e. in an urban infill area or in a suburb accessible to the CBD via infrastructure?  If the economy is on the downswing or if demand changes, will your next property continue to provide you with profits?  An experienced agent can help you understand these factors. 

5. Buying properties that have realistic rental yield: Marketing information and pro-forma statements can look appealing.  Seeking the help of a knowledgeable agent who will provide you with honest advice is a step in the right direction.  Professional agents will compare property data and features that provide a dependable market price.  Also, conducting a market lease analysis will give you an idea of what could be the best case, worst, most-likely rental yields. 

Purchasing commercial properties can be a daunting task.  But, seeking the help of an honest and knowledgeable agent can help you make wise buying decisions. 


CPN Commercial Group is a specialized real estate company.  We are located in Melbourne with clientele Australia wide. Our focus is on commercial, industrial, and retail sales, leasing and management of property. To learn more about purchasing commercial real estate in Melbourne visit our enquiries page http://www.cpncg.com.au/enquiries