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6 Things To Look For When Buying A Commercial Property in Brisbane

Posted On Thursday, 10 March 2022 19:39
6 Things To Look For When Buying A Commercial Property in Brisbane

If you are in the market for a commercial property in Brisbane, it's important to know what to look for. There are many factors to consider, such as size, location, and type of property.

Firstly, consider your needs and what you want from a commercial property. Do you need office space? Warehouse space? Retail space? Next, research the different areas that would be a good fit for your business. You want to find an area and a location in Brisbane that's both stable and growing so you can plan for the future.

Here are a few tips to help you find the right property for your business.

Location, Location, Location

Similar to residential properties and homes, the location is very important. There can be significant differences in pricing and the appeal of commercial space in Brisbane depending on if you're on a corner block, in a highrise, or in a shopping centre. These location-based factors can really define the profile of your property.

As well as your physical space, the transport access - public and road - has the potential to make or break a firm, it has a big influence on tenant demand.

In addition to these points, parking is also crucial, especially in the commercial sector, where employees or customers see the value in having an abundance of on-site parking.

What's The Vacancy Like?

Take into account how many vacant businesses, offices, warehouses/factories exist in the area you're considering. If there are a lot of empty spaces or stores for lease in the area you're looking to invest in, then it might be a sign that other people are looking to leave or it's not favourable to invest in.

If you have a large number of open vacancies, it might indicate that finding another renter - if you lose yours - will be difficult. If you lease out your space as well, then business owners will see that the area itself isn't thriving and might take a second thought on if it's a right move to lease from you.

If there are no spaces available, this indicates that the area economy is strong, and you'll be able to re-let your property soon.

Is The Building Up To Scratch?

There are many factors that investors will take into account when evaluating the type of building or property they want to invest in. The first thing you should look at is how old it is - older buildings here in Brisbane could result in more maintenance costs, especially if there's no lift (elevator).

You should also be on the look for a contemporary, attractive, and well-maintained property that requires little to no maintenance. These buildings are usually also cheaper on upkeep costs and provide better facilities. One of Brisbane's leading commercial property managers Trident Property has seen a slow rise in these types of properties over the past 5 years, making them a perfect investment opportunity. 

Look At The Tenants

Once you've found the tenant, get a description of who they are. How long has the tenant been on the premises? (Inquire about an arrears report), what is the lease term length – are the expiries staggered or grouped together, and what is their relationship to you?

What's Going On In The Area?

It's critical to understand what area of Brisbane you're looking into for your commercial property. More things about the area include:

  • What type of growth projections are present there?
  • Is there any legislation in the works to improve public infrastructure?
  • Are there a lot of new buildings in the precinct?
  • Is there a larger plan to rezone or revitalise the area that could cause major changes?
  • What are the local demographics' characteristics? Is it a wealthy community with a high per-capita discretionary spending profile?

Understand The Asset Fundamentals

Understanding the fundamental characteristics of each asset class and the market in which they operate is critical.

For businesses, this includes being close to retail offerings, transportation networks, a sufficient onsite parking ratio, the amount of natural lighting, and functional floor plates/tenancy areas. For more retail environments, you should look for good exposure to vehicle and foot traffic, a wide tenancy mix, and a good customer car parking ratio.

Industrial spaces need to have easy access to roads with larger driveways so large vehicles can easily manoeuvre in and out. There are plenty of spaces in Brisbane where you can also get access to a higher height limit which will benefit you in the long-term as low height limits affect the marketability of your property.

Real estate investment is a long-term game. You've got to do your due diligence and have good knowledge of the Brisbane commercial property market before you jump in. You've got to make sure you consider the location, the vacancy, the building, and what's going on in the area.

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