March 23, 2018 - Peak Equities
Category : Blog
Commercial Property Syndication – An alternative to Direct Property OwnershipNovember 27, 2018 - Peak Equities
The Evolution of Industrial into a Leading Investment ClassNovember 23, 2018 - Peak Equities
Benefits of Rebalancing Your Portfolio With Commercial PropertyOctober 15, 2018 - Peak Equities
What is a Property Syndicate?September 16, 2018 - Peak Equities
What You Need To Know Before Investing in Commercial Real Estate in 2019June 27, 2018 - Peak Equities
Understanding Commercial Real Estate Property TypesJune 15, 2018 - Peak Equities
5 Reasons Why Commercial Property is a Great Source of Stable Retirement IncomeApril 12, 2018 - Peak Equities
Understanding the Different Classes of Commercial Real EstateMarch 27, 2018 - Peak Equities
Peak Equities – 2018 Investment StrategyJanuary 15, 2018 - Peak Equities
Commercial Property Market Insights – Peak EquitiesJanuary 12, 2018 - Peak Equities
Peak Equities – 2017 Year In ReviewJanuary 8, 2018 - Peak Equities
Getting Started in Commercial Real Estate Investing 2019December 6, 2017 - Peak Equities
Benefits of Investing in Commercial Real Estate 2019November 30, 2017 - Peak Equities
Highlights of a Peak Commercial Property SyndicateJuly 5, 2016 - Peak Equities
With strong market conditions and finite inventory in 2018, the search for high quality and secure commercial property investments, with good long-term prospects, can be challenging. While there remains value in the current market, a keen eye, skilled research, sound investment strategy and expert asset selection are required for the best chance of success. Here are some insights from the team at Peak Equities.
Many Real Estate investors focus their attention on same-city Real Estate opportunities, assets they can see, drive past or visit with ease. It is worth keeping in mind however, that proximity can limit one’s perspective, reduce the range of available opportunities and ultimately make a sound investment decision more difficult. Melbourne and Sydney Commercial Real Estate markets have been strong for some time with yields as low as 3% being achieved by vendors. Accordingly, it is prudent to consider alternative regions with strong demographic trends, robust growth or centres with multiple economic drivers before an investment decision is made.
Buying commercial Real Estate for investment purposes requires consideration of the ‘entire story’. The strength and reliability of an asset’s income stream is the major driver of an investment grade assets value. In pursuit of value creation and preservation, getting to know sitting tenants, taking an active interest in their business and supporting their success where possible are all significant areas where value can be added to the relationship and by extension, the asset. Additionally, based on an investor’s expected holding period, the longer WALE (weighted average lease expiry) that can be achieved at the point you intend to sell the asset, the more valuable the income stream will be considered.
For preservation of equity, sustainability of income, tenant satisfaction and ultimately the saleability of the asset, investment decisions should include consideration of, and comprehensive planning for capital expenditure requirements. This is especially pertinent in the context of new constructions coming to market and in the planning stages which are often accompanied by significant incentives for tenants prepared to move.
Wherever possible, learn and benefit from the experience of professionals. It is always recommended to seek the advice of a licensed Financial Planner or Advisor before making an investment decision. It is also recommended to consult an experienced accountant as part of the process. Professionals of this kind can assist with finance, structuring, gearing, tax, risk management and investment decisions. Post purchase; diligent financial management, budgeting, reporting as well as compliance with all relevant fire safety, mechanical, OH&S and building codes are also critical to being successful in this space. With a proven track record expertise in these areas, Peak Equities offers confidence and peace of mind for those looking for a passive and secure investment.
Before deciding how to structure and manage your commercial Real Estate investment, you are invited to speak to the team at Peak Equities. As commercial property syndicator and investment specialist, Peak Equities not only offers participation in passive investments not usually available to private investors, but also often gains access to off-market deals and high-level opportunities.
September 19, 2019