Investing in commercial real estate can be a lucrative venture, and Queensland offers exceptional opportunities to diversify portfolios with commercial properties. Queensland offers a wealth of opportunities for those seeking to purchase commercial property and capitalise on the region’s robust economy and flourishing business landscape.
The bustling metropolitan areas of Gold Coast, Brisbane and the Sunshine Coast offer a diverse range of commercial property options, catering to a variety of industries and sectors. Whether you’re interested in office spaces, retail properties, industrial warehouses, or hospitality establishments, the state’s thriving real estate market provides ample options for all types of investors.
However, there are specific challenges and considerations that buyers must consider when purchasing commercial property in Queensland. Market research to zoning regulations, fees, and management, must be considered by investors to make an informed decision and a profitable investment. From helping investors find the right property to ongoing commercial property management, we will explore how commercial property managers help investors in Queensland.
Choosing the Right Location in Queensland
Queensland is a diverse state with various regions and cities that offer unique advantages for commercial property investments. Located within close proximity of each other, Brisbane, the Gold Coast, and the Sunshine Coast offer investors attractive opportunities.
Brisbane CBD
The central business district of Queensland’s capital, Brisbane CBD is a bustling commercial centre with a thriving economy, boasting modern skyscrapers, providing prestigious addresses for corporate headquarters, financial institutions, and professional service firms. It attracts businesses from various industries with a range of commercial property options and close proximity to both the Gold Coast and the Sunshine Coast.
Gold Coast
Known for its beautiful beaches and vibrant tourism industry, the Gold Coast presents opportunities for commercial properties catering to hospitality, retail, and entertainment sectors. In addition to catering to tourists, the Gold Coast offers a mix of office buildings in Surfers Paradise and Southport commercial hubs.
Sunshine Coast
With its laid-back lifestyle and growing population, the Sunshine Coast has experienced significant development in recent years. Known for its beautiful beaches and natural surroundings that appeal to tourists, it also features office buildings in its major centres like Maroochydore, and offers commercial property in healthcare, education, and tourism sectors.
Types of Commercial Properties in Queensland
There are a range of commercial properties available in Queensland. From office buildings in central business districts, to retail spaces in bustling shopping precincts, industrial estates and logistical hubs, as well as an abundance of hotels, resorts, and restaurants catering to Queensland’s vibrant tourism sector, investors have a range of commercial property to choose from.
Office Buildings
A historically stable investment, office buildings are a preferred choice of many commercial property investors thanks to consistent income streams, as commercial leases often range from 3 to 10 years, providing investors with predictable rental income. Office buildings are also highly flexible, allowing for easy reconfiguration and customisation to appeal to tenants, something that is not possible with other commercial investments.
Retail Spaces
Retail spaces are an attractive option for commercial property investors. With strategic renovations, rebranding, or repositioning, investors can enhance the value of the property and potentially attract higher-quality tenants or increase rental rates, however unlike office buildings, such reconfigurations often involve greater costs. Location plays a key part in the appeal of this property to potential tenants, more so than other types of commercial properties as visibility and foot traffic are crucial.
Industrial Properties
From warehouses, manufacturing facilities, and distribution centres, industrial properties are a great option for investors seeking higher yields and longer lease terms. Industrial properties tend to experience consistent and strong demand, as they are essential for various industries involved in manufacturing, warehousing, logistics, and distribution. These types of properties have limited tenant turnover as industrial tenants often stay in the same location for extended periods due to the cost and logistical challenges of moving operations.
Mixed-Use Developments
Mixed-use developments combine multiple property types, such as residential, commercial, and retail, in a single property. This diversification offers stability and mitigates risk as fluctuations in one sector are often compensated by the other, helping to maintain overall stability. The integration of different property types within a mixed-use development can also create synergies and cross-promotion opportunities.
What You Need To Consider When Buying Commercial Property
When purchasing commercial property, there are a number of factors investors must consider to ensure a profitable investment.
Zoning Regulations
Zoning regulations determine how the property can be used, so buyers should review the zoning classification to ensure it aligns with their intended purpose, whether it’s for office space, retail, industrial, or other commercial activities. Reclassifying a property is not only a long and arduous process, it’s often futile, so it’s important to consider the purpose of the property beforehand.
Location
Environmental factors are crucial, and buyers should assess any potential environmental risks or liabilities associated with the property, such as contaminated land, protected habitats, flooding risk, and any other extreme weather risk. Conducting thorough environmental assessments or obtaining expert advice is highly recommended.
Buyers should also research and understand any specific local regulations or laws that apply to the property, including building codes, fire safety requirements, accessibility standards, and any special permits or licences required.
Costs
In addition to the cost of acquiring the property, including the negotiated price and any associated taxes or fees, there are a number of other costs that investors must consider. From stamp duty, to legal and conveyancing fees, building inspections, to ongoing property management costs, investors must ensure they have contingencies in place to accommodate any unforeseen costs and events.
Getting Help
When buying commercial property in Queensland, it’s advisable to work with experienced commercial property agents who specialise in the local market. These agents possess in-depth knowledge of the Queensland commercial real estate landscape and can provide valuable insights and guidance throughout the buying process.
At Rose & Jones, we use our expertise in the Queensland commercial real estate market to help you through every step of the property acquisition journey, and beyond. From market research, to property search and evaluation, to negotiation, our team can help find and acquire the ideal commercial property in Queensland. Our commercial property managers also provide property management across Queensland, whether it’s property management on the Sunshine Coast or Gold Coast property management.
Reach out to our team today to embark on a successful commercial property management journey.
