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Commercial Investment | What's the best choice?

Office investments generally provide the highest yields, but often that comes with greater risks like longer vacancies between tenancies and the costs to maintain and refurbish tend to be higher.

Industrial investments seem to be more popular now than ever before, which has resulted in the yields coming down. The population in Victoria is continuing to grow at a rapid rate and many small to medium businesses seem to be expanding, so in more popular concentrated areas the vacancy rates are lowering.

Retail investments have always been the most popular type of commercial investments over the years. However, as retail in general has been experiencing harder times we’re seeing greater vacancies in once booming retail strips. This year the increased land tax – which is not recoverable from retail tenants – has gone up substantially and this has also impacted returns in the retail market.

In summary, each sector is different and have their own risks and rewards. More importantly location is key, no matter what type of property you are  looking to invest in. Other strategic factors to consider are the likely supply and demand of the type of property, infrastructure, construction and the state of the economy.

For more information on current market trends and property availability, please contact our office on 9567 8888 and speak to one of our commercial real estate experts.