Unlocking success in office real estate investing

In the world of real estate, one thing is crystal clear: no two commercial property investments are ever the same. Even within the same category – whether it’s office, retail, or industrial space – each property possesses its unique blend of location, layout, floor space, parking, potential for growth, and appeal to a diverse array of tenants. It’s like comparing apples to oranges, and knowing how to spot the juiciest ones can make all the difference in your investment journey.

Keen to kickstart your campaign in office real estate investing? Here’s what to look out for when investing in office real estate:

Ample parking space

You’re en route to a crucial meeting but you left the house ten minutes later than you should’ve.  Getting every green light has been a blessing, but it’s when you arrive at your office building that you see that an office building with insufficient parking space is a curse. You’re not alone in this common struggle, and your tenants won’t be either – if your acquired building has too few parking bays. The ratio of parking spaces to lettable area can be a game-changer in office real estate investing. Even with multi-story car parks and public transportation, easy and accessible parking is a paramount consideration for both employees and stakeholders.Remarkably, the availability of parking can significantly impact the experience of your staff and potential clients. Happy tenants, happy investments.

Sustainability shines

In today’s world, environmental consciousness shines brighter than ever. Forward-thinking landlords are eager to showcase their commercial assets’ “green credentials.” A property that embraces modern design while also considering the environment (and energy cost savings) will pique the appetite of modern-day tenants.Australia has embraced the National Australian Built Environment Rating System (NABERS) to measure sustainability. A robust NABERS rating speaks volumes about a property’s energy efficiency, a badge of honour for businesses and property owners alike. It’s not just the green in your pocket that counts; it’s the green credentials you can prove to your tenants.

End-of-trip perks

Smart employers want to cater to active staff by providing lifestyle facilities like showers, bike racks and locker rooms. Some might even go the extra mile with an in-house gymnasium or fitness room, promoting employee well-being and productivity. All of these end-of-trip facilities light up the eyes of budding occupants. 

Commuter convenience

Whether it’s the open road or bike paths, the commute to work is a major factor for employees considering where to work. Employee satisfaction could, in part, be measured by where their workplace is located. The right office real estate investment will be strategically located, offering easy access to transport links, major roads and freeway on- and off-ramps. This is critical. CBD traffic can be brutal come 5pm, but a tenant who can see the freeway entrance from their building might be halfway to signing their lease agreement with you. But not every employee drives. That’s why proximity to public transportation, including trains, trams and buses, is just as important. For those who embrace the active lifestyle with end-of-trip facilities, having shared-use paths near the office is the cherry on top of the convenience cake.

Caffeine and culture

Let’s be honest; coffee is a lifeblood for most office dwellers. Having easy access to cafes, lunch bars, restaurants and bars within walking distance can be a major draw for businesses. A savvy investor in commercial real estate will definitely consider this in their search for an ideal office real estate investment.

Flexible floor plans

 In the world of office real estate, space is key. A spacious office provides the flexibility to divide the floor plan and attract a wider range of tenants. And if space is key, then functionality is the door that key opens. A 1,000-square-meter open floor plan won’t suit a small business needing only 350 square meters. But dividing the space to accommodate two or three similar-sized businesses can diversify your rental income and minimise risk.Maintaining functionality and accessibility for all tenants is crucial when splitting a floor plan. Ensure everyone has access to elevators, stairways, common areas and restrooms. Although, don’t let common areas eat too much into your Net Lettable Area. Because this will eat into your ROI.

Hunting for the ideal tenant

In the world of office real estate investing, finding the perfect tenant can be an art. Occupants come in all shapes and sizes, but they should always be financially sound with a strong corporate reputation. Major national and international companies, for example, bring stability and prestige to your property investment. Their public announcements or mentions in the media can be clear indicators of their stability and their future performance.

The power of expertise

The journey to a successful office real estate investment often requires expertise, deep market knowledge, robust industry relationships and a touch of creativity. It’s not easy investing alone. This blog post is just a guide – a very high-level overview – and misses the countless complexities and challenges that must be overcome. That’s why many investors don’t go at it alone. They invest with experienced professionals. At Properties & Pathways, we treat your investment capital as if it were our own. We invest only in high-performing commercial real estate, after a significant due diligence investigation. Each commercial asset we invest in ticks every item of criteria on a very long list. Which is why we always invest alongside our investors – in every single investment. 

If you’re eager to explore the world of office real estate investing, or any other asset class in commercial real estate, reach out to Properties & Pathways today. We’re here to help you on your journey to financial success.