Commercial
The Path to Profit: 5 reasons investors invest in commercial property syndicates
Published
23 May, 2023
Let’s face it, traditional commercial real estate investment can be a bit like navigating a maze with hidden traps. Any novice will attest to it being harder than it looks, and most give up before they’ve even offloaded a dollar. That’s where commercial property syndicates come to the rescue.
Also known as unlisted property trusts, commercial property syndicates offer a more straightforward and accessible path to conquer the commercial real estate market.
Here’s why investors love commercial property syndicates:
- Easier to get involved
- Diversification makes a safer investment
- Worry-free investing
- Far more time for what’s important
- Access to premium properties and locations
So, get ready to dive into the prosperous world of property syndicates as we unveil the reasons why they’ve become the go-to choice for investors looking for an easier path to prosperity.
1. Easier to get involved
Imagine joining forces with other investors to collectively own a share of a commercial property. That’s the power of property syndicates. With this shared ownership model, the entry barrier shrinks, and you no longer need to stress about most of your hard-earned going toward one investment class (more on diversification shortly).
By pooling your resources, you can participate in larger and more lucrative real estate opportunities. In commercial real estate, it’s typical that the bigger the property, the bigger the tenant and the bigger the offered net lettable area… the bigger your returns.
2. Diversification makes a safer investment
Ah, diversification — the secret recipe to successful investing. And property syndicates are a brilliant ingredient to create you a balanced investment portfolio.
Smart investors hold a portfolio of different asset classes and investment vehicles, and doing so shields them from narrow market risk. If one property decides to go rogue, the others come to the rescue.
Having a lower barrier to entry means investors can retain more capital to distribute elsewhere. And this diversification can help protect investors from the ups and downs of the market.
3. Worry-free investment
Property syndicates assemble a team of property pros to push your investment towards success. These professionals are armed with extensive knowledge and experience. They diligently research opportunities, identify attractive investments, negotiate like it’s their investment too (with Properties & Pathways, it is – we’re in it together), and handle the day-to-day operations of the properties and their tenants.
By investing in a property syndicate, you get to ride on the coattails of these real estate experts. So sit back, relax, and let the professionals do the heavy lifting while you reap the rewards.
4. Far more time for what’s important
Buying, holding and selling a commercial property is no easy task. Purchase and leasing negotiations can be fierce, tenant management can be ongoing, and timing the market for a well-timed sale can be incredibly onerous and stressful. That’s where property syndicates come in.
Instead of diving headfirst into the abyss, you can leave the nitty-gritty details and tense negotiations to the syndicate managers. They’ll handle everything from tenant selection and lease negotiation to property maintenance and legal compliance. It’s like having your own personal assistant, except they make you money – not coffee.
5. Access to premium properties and locations
What property investor doesn’t dream of owning an office building or a bustling retail asset? Property syndicates can turn those dreams into reality.
Syndicates invest in prime commercial properties located in the hottest locales. We’re talking about bustling retail centres in vibrant cities and state-of-the-art office buildings in thriving business districts. These are the cream of the crop, the crème de la crème, and you get a front-row seat to the action. You may be one of many, but you are indeed an owner of a beautiful, premium commercial asset.
Property syndicates have completely shaken up the game when it comes to investing in commercial real estate. They’ve managed to make the process a breeze while also tearing down those high barriers that used to get in the way. With shared ownership, investors like yourself can now get a slice of those premium properties, diversify your portfolio, and tap into the wisdom of high-profile professional managers. But wait, there’s more! These syndicates also give you the gift of reduced administrative headaches and a whole bunch of flexible liquidity options.
So, as the demand for hassle-free real estate investments skyrockets, property syndicates are ready to step into the limelight and empower investors like you to get involved.
Want more info on how you can invest? Get in touch with us today.
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