Here are my market insights right now in the commercial property space.
In VIC, it’s a buyer’s market and a tenant’s market.
Specifically, a buyer’s market for owner-operators purchasing with vacant possession.
There are several factors that undoubtedly have contributed to it being a vacant possession buyer’s market These include:
Land tax increases for property investors in Victoria have led to an increase in the selling of assets
Stamp duty reforms for purchasing commercial property have reduced or deferred upfront tax costs, making it more financially accessible for business owners to acquire their own premises.
Interest rate hikes have softened investor interest, with many unable to fund the holding costs of vacant sites.
For business owners who have been operating for over three years, and are now in a confident financial position, this current market is an ideal time to evaluate their lease or explore new premises. We're currently assisting clients with:
Evaluating, negotiating, and purchasing the site they lease (often, we handle this on behalf of a confidential client to secure optimal results)
Sourcing and acquiring a new site for businesses or organisations.
Sourcing and negotiating terms to lease a site for businesses and organisations.
Over the past month, we've received inquiries from Victorian owner-operators, broadly speaking:
Warehousing for trades
Warehousing for manufacturers and E-comm
Retail for health and beauty sectors
Regional freehold sites for professional services
Non for profit organisations relocating
In short, if you’re in a position to explore your options for a commercial property to operate from (or have clients that are), now’s a good time to step in and take advantage of the current buyers and tenants market. Always keep in mind:
There are great opportunities, for smaller and larger sites
Run your due diligence on the area with an emphasis on zoning and parking
Run your due diligence on the site itself with emphasis on structural integrity
Position yourself to negotiate well by being informed and doing your research
For assistance in purchasing a property as a business operator or leasing a property, connect with me via email vicki@truenorthba.com.au, mobile 0418 357 609 or book a time that works for you here
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