Low interest rates, good buying opportunities and relaxed superannuation laws are enticing an increasing number of businesses to buy commercial property, says a leading commercial agent.
Ray White Surfers Paradise commercial sales specialist Adam Young said many businesses were starting to opt to secure their own premises as an alternative to leasing long term
“We’re seeing strong activity across all market sectors – retail, office and industrial, along with the reemergence of developers across Gold Coast City,” he said.
“While enquiry is strong across the board, areas with good infrastructure and surrounded by established residential pockets are always extremely popular.
“With the low interest rates and good buying opportunities in the current market, it makes sense for businesses to take advantage of this environment and secure their own property.
“Relaxed laws around purchasing property as part of superannuation funds is also appealing to a lot of people at the moment.”
Robina Group general manager Hylton Slater said while leasing remained a popular option, there had been an increasing level of interest from those looking to purchase office space for their business, with many lessess specifically requesting rent vs buy comparison figures
He said Robina Group’s $14 million CityPods development in CBDRobina was a prime example, with monthly mortgage repayments comparable to rental payments on the stand-alone offices.
“We have done the calculations and, with a cumulative comparison, after six years renting it is no longer the cheapest option and a business would be better off by more than $1.8 million over 15 years if they purchased rather than rented,” he said.
“As a result, those looking for a base for the long term are increasingly weighing up the benefits of purchasing commercial property.
“Along with securing brand new office space, in a high growth location with the potential to build equity and capital growth, there are significant tax depreciation benefits.”
Mr Slater said the certainty that came with ownership was also appealing.
“Those who own their office are not subject to annual increases in rent or market reviews, and can move forward with the confidence of knowing this will be their base over the long term,” he said.
“The property can also provide a potential retirement nest egg or become an investment property.”
CityPods is a unique stand-alone office concept, with premises ranging from 163sqm to 304sqm.
Situated on Scottsdale Drive in the M1 Business Precinct, it includes eight completed offices, with a further seven under construction by builder, Bennett Constructions.
Just two offices remain in the completed first stages.
