Commercial and Industrial Properties: 3 Types on the Market
Commercial and industrial properties present worthwhile investment opportunities for real estate professionals and investors. They don’t hit the market as often as residential homes. When they do, these properties offer a stable income stream and significant equity potential. Let’s dig into three types of commercial and industrial properties on the Australian market.
Commercial office space includes standalone offices, co-working spaces, and serviced offices. These are nice properties because the tenants tend to be professionals. Maintenance is still required, but it’s on a far lesser scale than other properties. A standard office space contract is three to five years. This gives you enough time to plan and attract new tenants.
Industrial spaces include warehouses, logistics buildings, and sheds. Rental contracts also tend to be in the three- to five-year range. These buildings require maintenance but not as much as residential properties or commercial offices. Many times, the tenants handle it themselves. You would be responsible for ensuring that the HVAC system operates as intended.
Retail properties are the largest of three in terms of square footage. Office space is limited to the size of the building. Retail space spans blocks in some cases. This property type includes shopping sites, boutiques, and big-box retail stores.
To finance any of these properties, contact our Mortgage House team of lending experts. We specialise in several loans as well as the Australian housing market.
Commercial and Industrial Properties Conclusion
When you research commercial and industrial properties, take into account real estate cycles within the economy. The boom types are great, but you must plan for the downtimes, too. These properties take longer to close and require a significant capital investment. Landing solid property sets you up to acquire another.