Commercial assets proving attractive to owner-occupiers

By Kristian Morris

For many business owners, the allure of owning their commercial space transcends simple financial calculations. While renting offers undeniable flexibility, the prospect of building equity, customising your surroundings, and exerting complete control over your work environment holds immense appeal. This is particularly true for retail and medical businesses, where a branded space and specific layout directly affect client experiences and brand identity. Let’s explore the key factors driving the popularity of owner-occupied commercial premises and the crucial steps to navigate this journey successfully.

Three reasons to own your commercial premises

1. Financial advantages and investment potential: Owning gives you the benefit of a mortgage rather than ratcheted monthly rent. Property appreciation adds to your net worth, and you could benefit from tax breaks often associated with property ownership. Commercial property presents a valuable investment opportunity. Beyond using it for your business, you could lease the space for additional income or eventually sell it at a profit

2. Customisation and control: Owning empowers you to tailor the space to your exact needs and brand vision. Whether it’s creating a unique retail experience or designing a patient-centric medical facility, complete control fosters increased functionality and improved brand identity without the hassle of worrying about make-good clauses.

3. Stability and security: Having ownership provides a sense of stability and security that renting cannot match. You eliminate risks associated with lease renewals, rent increases or sudden eviction notices, allowing for long-term planning and business continuity.

How to secure the right commercial asset for your business

  • Partner with a savvy commercial agent: Navigating the commercial property market requires specialised knowledge. Collaborate with an agent who understands your specific business, its needs and the dynamics of the local market. Their expertise can help you identify suitable locations, negotiate favourable terms and avoid potential pitfalls.
  • Define your needs and wants: Before embarking on your search, clearly define your requirements so you can give a comprehensive brief to your commercial real estate agent. Consider factors like space size, layout, accessibility, location demographics and proximity to competitors. Having a well-defined brief reduces wasted time and ensures your agent can focus on properties that align with your needs.
  • Discover off-market gems: Experienced agents often have access to exclusive off-market listings that haven’t hit the market yet. This insider knowledge can give you a substantial advantage in securing the perfect property before it becomes widely available to the general public.
  • Conduct thorough inspections: Never skip a physical inspection, no matter how convincing online listings or virtual tours may be. Meticulously assess the property’s condition, identify any potential repairs or upgrades needed and ensure it complies with all necessary regulations.

Who is taking advantage of owning business premises?

For retailers, ownership allows for complete control over brand presentation and the customer experience. As an owner, you can design the layout to optimise product flow, create engaging displays, and tailor the ambience to reflect your brand identity. Owning retail space also fosters a sense of community and stability, encouraging repeat customers and building brand loyalty. A shoptop-style premises gives you the added advantage of another income stream or a home above the shop.

In the medical field, owning premises allows for customisation that promotes patient comfort and privacy as well as stability. Waiting areas, examination rooms, treatment facilities or a laboratory can be designed to comply with specific medical regulations ‒ and invest for the long term.

We’re seeing strong competition between investors and owner-occupiers for industrial assets. Some owner-occupiers are keen to secure a space in a competitive rental market and the stiff competition is driving up values for assets.

The bottom line on owning your business premises

For businesses seeking control, stability and the potential for long-term financial benefits, owning their commercial premises can be a strategic decision. By partnering with a knowledgeable agent, clearly defining their needs and conducting thorough due diligence, owner-occupiers can turn their dream space into a reality, providing themselves with a foundation for growth and success.

Case study: owner-occupier Sydney city fringe

  • Suite 105/24 Lyons Road Camperdown. Creative studio

This property, with a high-profile location, is just moments from Broadway Shopping Centre and Sydney University with parking and a courtyard on the title and public transport options on the doorstep.

For our buyer, owner of a creative business, this property offered an ideal entry point into the commercial property market. The owner will sell the property to their SMSF (self managed super fund) and the business will lease back the property.

Let us help you with your commercial property

As dedicated local commercial real estate agents, we can help you extract more value from your commercial property. Please get in touch to discuss your circumstances and assets so that we can give you personalised advice. Whether it’s commercial leasing, management or sales, we’re here to help you with your Sydney-based commercial property.

Contact us at Ray White Commercial Sydney City Fringe

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