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Commercial can be split up into three major
categories; retail, office and industrial. The majority of
businesses lease the building from where they run their business.
Retail
Retail is property to be used by a retail
business for the sale of merchandise or services. Retail property
includes all types of shops, restaurants, department stores, hotels.
Prices for this kind of property is largely dependant on location.
Retailers want to get as many visitors as possible so want to be
positioned in busy areas in cities where people are often walking
by.
Office
Office property is what most people think
of when u mention commercial property. Office location is also
important, they want to be central so they are close to
communications and local customers. That is why you see big office
buildings in CBDs.
Industrial
Industrial property is
used for industrial purposes, such as manufacturing,
factories, warehousing. They are located further out of town and
need to be near highways and motorways. They also require a lot of
land.
Investing
Commercial investment has all the same tax advantages as
residential. However the tenants require very little management.
They may lease your commercial property for five or ten years. The
tenants are also responsible for all the running costs such as
insurance. They will often make improvements to the property at
their cost, adding value to your property investment.
Commercial properties have higher returns than residential, as
commercial property is a different market and does not rise in value
as quickly as residential.
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