There is more to property investment than residential buying and selling, so for those interested in diversifying their property portfolio, commercial property may be the next logical step. Assuming you can secure the finance and have the patience to wait for longer term results, a commercial property investment can make a great addition to your investment strategy and, best of all, you can have it all managed by your friendly local First National Commercial property agent.

There are plenty of options for those looking to invest in a commercial property – from CBD office spaces to showrooms with highway frontage, warehouse spaces in industrial zones, coveted retail spaces in high traffic shopping areas or off the plan options at business parks currently under construction. Getting involved depends on the level of risk you are comfortable with and the state of the current market.

One of the many advantages of commercial property investment is the potential for a strong return on your investment as market needs change. Choosing the right property in the ideal location can deliver great results, especially in situations where local demand for property is strong and supply is limited.

However, you should think about the level of ongoing expense, the maintenance you are prepared to commit to, and whether a commercial property complies with Essential Safety Measures before you buy. A large empty warehouse will obviously have much lower ongoing costs than a retail store with high foot traffic and requirements for essential facilities like lighting, bathrooms, kitchen facilities and air-conditioning.

This is where tenant availability comes in too – finding good tenants who can not only take care of the property, but whose business will maximise its potential can be a challenge, but your agent will have the best advice for you on this.

Some industrial parks will have tenants on a waiting list while under construction and, in the case of retail developments, the addition of just one high profile tenancy can transform a shopping precinct and increase rental yields in a much shorter time than might be the case with a residential investment.

If you are interested in dipping your toe into the commercial property market, the first thing you can do is download our Commercial Property Investment Guide.

After you have read through it, contact your local First National Commercial agent for advice. Their understanding of the nuances of the market will provide you with expert guidance and in the longer term, proactive management of your asset to ensure it retains its value, increases in value over time, and that the yield is maximised over the duration of your investment.