What makes the perfect office property acquisition (Part One)

No two commercial property investments are alike. Even two properties in the same category – office, retail or industrial, for example – will have different locations, layout, floor spaces, car parking, potential for expansion or improvement, relevance to the demographic catchment, and will appeal to different tenants.

Understanding what to look for in commercial real estate can mean all the difference between an acquisition providing a solid return and one that underperforms.

There are many factors involved in smart property investing. The first to look for in any commercial property investment opportunity is a property’s ability to attract a solid tenant. This is fundamental. An investor must understand tenant demands as well as an asset’s capacity to appeal. Successful commercial property investing does not stop there.

In this two-part article, we take a look at what to consider before investing in commercial office space in Australia’s current market.

Sufficient Car Parking

One of the most important factors in a commercial office investment is the ratio of car parking to lettable area. While multi-story carparks and public transport may reduce the need for office building parking, accessibility and ease of parking for customers and stakeholders (company directors and managers) is integral.

It is incredible how much this can impact staff and potential client experience.

Sustainability

Environmental awareness is more prominent than ever with smart property owners eager to show their commercial asset’s “green credentials”. A property that looks contemporary and considers the environment (and savings on energy costs) will have greater appeal to the modern-day tenant.

Recently adopted in Australia is measuring sustainability by the NABERS (National Australian Built Environment Rating System). Based on a property’s design, a strong NABERS rating evidences a property’s solid energy efficiency. This has become a statement piece for businesses and property owners, who want the kudos (and the savings on energy costs) that come with sound green credentials.

End-Of-Trip Facilities

A large amount of office employees are using cycling, walking, and jogging as a daily exercise routine on the way to and from work. Smart business owners want to accommodate active staff by providing lifestyle facilities, such as showers, cycle racks, and locker rooms. Some may want to provide a gymnasium or fitness room to encourage employee wellbeing in their organisation.

Transport Links

Whether on roads or bike paths, commuting to and from work is a major consideration for employees and employers. A well purchased property will be in close proximity to transport links, major arterial roads, and freeway interchanges.

Of equal or greater importance is an office which offers nearby public transport, like trains, trams, and buses. For those using the mentioned end-of-trip facilities, share use paths nearing their office will be highly desirable for both convenience and safety.

Coffee and Sandwiches

Coffee is popularly seen as a necessity to function during morning office hours. As a result, convenient access to urban precincts and coffee culture is important.

Being in walkable distance to cafes, lunch bars, restaurants, and bars is a major appeal to the average business. A smart investor of commercial real estate will consider this.

Next week we will dive deeper into smart commercial real estate investing with part two of what makes the perfect office property acquisition.

We don’t set the trends, but we like to ride the cycles. If you’re interested in investing alongside experienced commercial property investors, or learning more about how we add value, get in touch with the team at Properties & Pathways.