person searching for a commercial property

Key elements to finding a commercial property in 2024

In an ever-evolving commercial real estate market, finding the right property requires a strategic approach and a keen understanding of numerous factors.

From choosing the right location, staying abreast of market trends through research, and getting up-to-date advice from industry experts including our team at Commercial Collective, let’s explore some of the crucial elements to consider when selecting a commercial property.

We’ll also offer some local insights to help potential investors navigate the process of pursuing a commercial property and ensure they have the best chance of obtaining a wise and successful investment.

Choosing a commercial property location and understanding local demand

Selecting the right location is essential when making a commercial real estate investment. It’s important to identify areas that are in high demand based on the type of commercial property you’re looking to invest in.

Factors such as population density, proximity to transportation hubs, and the nearby presence of key industries are all important when choosing the right location.

In Newcastle, Maitland and the Hunter, industrial markets continue to be in strong demand. This makes industrial-zoned precincts around North Mayfield, Tomago, Raymond Terrace, Beresfield, and Rutherford some of the locations that could be ripe with prospects for those seeking to invest in industrial properties in the area.

Meanwhile, although commercial office space and retail premises have been in lesser demand following the impact of Covid 19, Newcastle hasn’t experienced the same decline in demand that was seen in larger cities like Sydney and Melbourne. Therefore, commercial retail and office spaces located within the city CBD, Maitland city, and areas close to shopping complexes such as Kotara, Charlestown, and East Maitland provide investors with great alternatives. Particularly if capital city-based investors are looking to diversify portfolios and invest more widely in regional areas.

It’s important to investigate how the type of property you are looking at is performing locally, as different locations are each influenced by factors around them.

Do your commercial property market research

Choosing a commercial property doesn’t end with finding the right location and considering local demand based on property type. It’s important to do additional market research to assess the potential profitability of your purchase. This includes learning the key economic drivers of the local economy, staying attuned to urban planning developments, government initiatives and more.

When it comes to Newcastle, the region continues to experience economic diversification as it transitions from a coal-dependent economy to a more varied industrial base. The inner city has also undergone significant changes in recent years thanks to the removal of the train line and the introduction of a tram.

There we are seeing demand for mixed-use developments to allow businesses to support the growing residential community. Outside of the city, Lake Macquarie is in demand due to its proximity to Sydney while Port Stephens is also seeing economic growth and a greater demand for commercial property due to the international airport terminal being constructed at Williamtown.

Analysing the potential yield for a commercial property is also essential during your search. Investors can assess trends based on recent and long-term historical performance for their property type in the location they are considering. This step is essential as it allows investors to gauge future profitability and income before making their purchase.

If you’re still not sure where to buy, stay attuned to any local, state, or national government initiatives and urban planning developments. Urban renewal projects, rezoning, and infrastructure projects can provide clues to potential new opportunities for commercial property investors.

There are also broader market trends to be aware of. In Newcastle, the shift towards remote work led to demand for flexible office spaces, but more recently, businesses in the area are seeing staff return more regularly to the office. An increase in technology-driven industries and sustainability is also resulting in demand for innovative workspaces. It’s factors like this that investors can take note of to ensure their future investment purchase is prosperous.

Seek expert advice from local commercial property agents

Navigating the intricacies of the commercial real estate market requires the guidance of seasoned professionals like those in our team at Commercial Collective.

Commercial Collective’s agents are local to the area and as such they are attuned to the finer details relating to market conditions. Our team can provide expert advice on what types of commercial property are available for purchase and can also assist with asset management and insurance as required.

Establishing a collaborative relationship with our expert team can enhance the decision-making process and ensure your choices are well informed.