How central commercial property can work for investors
Commercial property investment can be the next big step for investors looking to increase their portfolio.
Commercial property can offer higher returns than residential investments, although it is usually considered to have higher risks, depending on the property.
Buying into a centrally located property will cost more than a suburban investment, yet the income generated is considerably higher.
Consider the move made by consultancy firm SKM, as reported by the Grattan Institute in their latest Productive Cities report.
SKM moved their 850 staff seven kilometres from an office suburb into the Melbourne CBD.
In doing so, they lost their car parks and access to arterial roads, and ending up paying 75 per cent more in rent per square metre.
However, the move allowed the company to recruit from the best and most skilled workers and top graduates from all around Melbourne, and now clients are far more likely to visit the office.
The move to the CBD was worth the higher rents to the company.
Talk to the investment experts at LJ Hooker if you'd like to find out more about investing in commercial real estate.