When we talk about the property market, it’s safe to say that we more often than not focus is on residential.
The conversations with friends and family are similar. But savvy investors have long been aware of how lucrative commercial property investing can be and many more are switching over each day.
In fact, in 2021 alone, search volumes on commercial property have reached an all-time high, quality commercial assets are severely scarce and yields are the highest they’ve been in almost a decade.
Not all assets are created equal
Commercial property can be divided into four distinct asset classes. Office space, retail, and industrial and each asset type has its own set of risks and rewards, and each follows trends.
It’s important to understand the fundamentals of each and their relationship to the current market to make sure you are purchasing a winning commercial asset.
Everything’s up for negotiation
When you purchase a commercial property, unlike residential, you are entering into an agreement with the tenant and their business.
Absolutely every term can be up for negotiation and you will need a seasoned lawyer and negotiator in your corner to make sure you understand what you are signing up for.
Adopt a wealth creation mindset
Shifting from a tax saving or ‘fear’ mindset to an opportunistic or ‘profit’ based mindset is the number one key to commercial investing. It will help you achieve bigger goals resulting in higher-yielding properties, stronger growth and ultimately more revenue.
And that’s what we’re here for, to make money from our investments, not to purchase the ‘prettiest’ property to make us feel happy and nice.