With the uncertainty of investing in the share market we have seen a heavy transition of investors who have traditionally not owned commercial property jumping right in and acquiring key assets in various commercial sectors. The see it, touch it, feel it analogy with investing has assisted in the confidence shown by some existing commercial investors and also new investors in recent times with yields reflecting investors long term strategies for set and forget style properties.
We are seeing most types of investments that have a 3 year lease or longer securing strong interest from various types of investors and reflecting yields from as low as 6.5% to 8.5%. The longer the lease, the better the tenant; the greater the security in place, the better the yield on the sale.
Should you have a commercial property in your portfolio at present with a lease in place it is a great time to be reassessing your strategy and also understanding the value of your property for the purposes of resale or valuation to assist in potentially allowing greater leverage to acquire more property in the current market. Properties that are vacant at the moment may be able to be purchased at below market rates and with a small investment into the property to assist in securing a tenant then be turned around for re-sale or held in the portfolio for long term investment.
Any questions on how to grow your portfolio by leveraging from current market values of capitalizing on strong sales yields give the team at NAI Harcourts Pinnacle a call.
Phil Grant – Director Commercial Sales & Leasing
NAI Harcourts Pinnacle