With interest and purchase of commercial property in Melbourne seeing a substantial increase in late 2016, The Urban Developer recently published some tips on what people who are considering purchasing commercial property in Melbourne should consider.
In summary these include but are not limited to: -
- The market rents that are being paid by tenants for existing leases by building type and location.
- Prices per unit of area for the different property types that you are interested in.
- The business sectors of the property market that are showing growth or change.
- The supply and demand for property currently and the predictions over the coming 12 months.
- The overall business sentiment for the city and the suburbs.
- The employment rate and the levels of change over recent time.
- The growth suburbs for newly constructed buildings, be they office, industrial or retail.
- The capitalisation rate that you can achieve for investment property locally considering values or prices paid and market rents.