Commercial property offers an interesting, alternative long-term wealth creation opportunity for Australians and, based on figures from the most recent financial year, it is more profitable than ever. Since June last year, Australia recorded $69.7 billion in commercial transactions; the largest sectors contributing to this were office, industrial, and retail. There were over 9,300 major transactions for properties greater than $2 million and $12 billion worth of transactions for properties less than $2 million.
Such figures illustrate the popularity of and current growth within the commercial sector, and also demonstrate why investing in commercial property can be a profitable decision for those who may otherwise have only considered residential property. Investors can reap the benefits of increasing property values and rental income over time, as different industries and sectors across the country continually grow.
As the country recovers from the impact of the pandemic, it’s the hotel and pub sectors that are bouncing back in the commercial space, as travel and business ramp up again. Activity in these two sectors has doubled in the last financial year, which is a positive indication that these previously struggling sectors are flourishing once again.
Other commercial sectors including service stations and childcare have recorded an increase of 122% in turnover. These two assets are popular with private investors and offer reliable investment opportunities with long-term rental income. The continuous expansion of the medical industry makes the medical and health sciences sector another area to watch over the next financial year.
All of the above demonstrates the growth being experienced within the office, industrial, retail, medical, tourism, and other commercial sectors. With a variety of sectors available to choose from when it comes to selecting a commercial investment property, it helps to enlist the expertise of an experienced commercial agent. First National Commercial agents can assist in building your property portfolio as a secure means of investment for your future, by offering local knowledge and advice suited to you. A good agent will aid in negotiating a lease, screening applicants, establishing a rental value, arranging insurance, conducting inspections, and more.
The process of owning a commercial investment property may seem daunting, but a First National Commercial agent can provide expertise and simplify the investment process for you. As the industry continues to grow, now is a more suitable time than ever to enter the commercial market and start making your investment work for you.