Category: News

At a glance

• Leverage the expertise of industrial real estate agents to gain market insights, enhance marketing efforts, and negotiate favourable lease terms.
• Boost your property’s visibility with a professional website, SEO, and social media marketing to attract potential tenants.
• Set competitive rental rates and offer attractive incentives to draw in tenants, ensuring transparent and fair lease terms.

 

As industrial properties in Melbourne become increasingly sought after, property owners must differentiate their offerings to capture the attention of prospective tenants. Whether you are leasing a warehouse, distribution centre, or manufacturing facility, highlighting your property’s unique features and leveraging the expertise of industrial real estate agents can make a significant difference.

Just Commercial, a leading name among industrial real estate agents in Melbourne, understands the complexities of the market and the critical elements that appeal to tenants. By focusing on effective marketing strategies, competitive pricing, and maintaining high property standards, you can position your industrial property as a top choice in a competitive landscape.

Let’s explore comprehensive strategies to attract tenants, ensuring your property stands out and meets the needs of today’s industrial businesses.

 

Highlight the Property’s Unique Selling Points

 

Emphasising your industrial property’s unique selling points (USPs) is critical to attracting tenants. These features distinguish your property from the competition and make it more appealing to potential tenants.

Location: One of the most compelling USPs for industrial properties is location. Properties situated near major transportation routes, such as highways, ports, and airports, offer significant logistical advantages. Highlighting proximity to these transport links can attract businesses that rely on efficient goods movement. Additionally, if the property is located in an area with a robust infrastructure, access to utilities, and proximity to a skilled labour force, these factors should be prominently advertised.

Facilities and Amenities: Modern and well-maintained facilities are crucial. High ceilings, ample loading docks, robust security systems, and large parking areas are attractive features for industrial tenants. Advanced amenities like climate-controlled storage areas or sustainable, eco-friendly building designs can cater to specialised tenant needs. For instance, companies that handle sensitive materials may prioritise climate control, while those committed to sustainability will appreciate green building features.

Flexibility: Flexibility in lease terms can be a significant draw. Offering a variety of lease options, such as short-term leases for startups or long-term leases for established businesses, can accommodate a wider range of tenants. Furthermore, allowing for flexible space configurations can help attract businesses that may have specific layout requirements.

 

Leverage the Expertise of Industrial Real Estate Agents

 

Partnering with experienced industrial real estate agents can significantly enhance your property’s attractiveness to potential tenants. Industrial real estate agents in Melbourne bring valuable market insights, extensive networks, and specialised skills that can expedite the leasing process.

Market Knowledge: Industrial real estate agents have an in-depth understanding of market trends, including current demand, competitive pricing, and emerging tenant needs. Real estate agents can provide you with a detailed market analysis to set a competitive rental price and identify necessary property enhancements. For instance, if there is a growing demand for warehousing space due to an e-commerce boom, an agent can advise you on how to position your property best to meet this demand.

Marketing and Outreach: Agents utilise a variety of marketing channels to ensure your property reaches a broad audience. They can list your property on high-traffic commercial real estate websites and employ email marketing campaigns to attract potential tenants. Additionally, they often have a network of contacts and can leverage relationships with relocation companies, industry associations, and other businesses to find suitable tenants.

Negotiation Skills: Skilled agents handle negotiations to ensure lease agreements benefit both landlords and tenants. They can address tenant concerns, negotiate lease terms, and facilitate a smooth transaction process. Their expertise can be particularly valuable in resolving complex issues, such as negotiating tenant improvement allowances or handling legal aspects of the lease.

 

Enhance Online Presence and Digital Marketing

 

A strong online presence is important in today’s digital age. Potential tenants often begin their property search online, making it crucial to ensure your property stands out on digital platforms.

Professional Website: A well-designed, professional website is a key asset. Ensure your property is prominently featured with high-quality photos, detailed descriptions, virtual tours, and easy-to-find contact information. Highlight the property’s USPs and provide comprehensive information on location, amenities, and lease terms. Including testimonials from current or past tenants can also build credibility and trust.

SEO and Keywords: Optimise your website and property listings with relevant keywords to improve search engine rankings. Keywords like “industrial property” and “industrial real estate agents in Melbourne” should be used naturally in your content. SEO techniques, such as meta tags, alt text for images, and quality backlinks, can further enhance your online visibility.

Social Media Marketing: Promote your property using social media platforms like LinkedIn, Facebook, and Instagram. Regularly update your profiles with engaging content, such as property highlights, success stories, and industry news. Use targeted advertising options to reach specific demographics most likely to be interested in your property.

 

Offer Competitive and Incentive-Based Pricing

 

Pricing plays a crucial role in attracting tenants. Competitive and transparent pricing, along with attractive incentives, can make your property more appealing.

Competitive Rates: Conduct thorough market research to ensure your rental rates are competitive. Overpricing can deter potential tenants, while underpricing may raise concerns about property quality or hidden issues. Benchmark your property against similar properties in the area to set a fair and attractive price.

Incentives: Offering incentives can tip the scales in your favour. Consider providing rent-free periods, discounted rates for long-term leases, or assistance with fit-out costs. These incentives can be particularly attractive to new businesses or those looking to expand without incurring significant upfront costs.

Transparent Terms: Clear and transparent lease terms build trust with potential tenants. Avoid hidden fees and ensure all terms and conditions are straightforward to understand. Providing a detailed lease agreement that outlines all aspects of the tenancy can prevent misunderstandings and foster a positive landlord-tenant relationship.

 

Maintain and Improve Property Condition

 

A well-maintained property is more attractive to potential tenants. Regular maintenance and improvements not only enhance the property’s appearance but also its functionality and safety.

Regular Maintenance: Implement a proactive maintenance schedule to address issues before they become significant problems. Regular inspections and timely repairs of structural elements, plumbing, electrical systems, and other critical areas show that you value the property and its occupants’ safety.

Upgrades and Improvements: Periodically upgrading the property can add significant value. Consider modernising facilities, improving energy efficiency, and adding new amenities. For example, installing energy-efficient lighting and HVAC systems can reduce operational costs for tenants and make your property more attractive.

Cleanliness and Safety: Ensure the property is clean and meets all safety standards. A clean, safe, and secure environment is a major selling point. Regularly clean common areas, maintain landscaping and ensure all safety measures, such as fire alarms and sprinkler systems, are functional and up to code.

 

Understand and Address Tenant Needs

 

Understanding the specific needs and requirements of potential tenants is crucial. Tailoring your property to meet these needs can make it more attractive.

Customisation Options: Offering customisation options can attract tenants with specific operational needs. Whether it’s modifying layouts, adding particular facilities, or allowing for tenant improvements, flexibility can be a strong selling point. For example, a tenant might require a larger loading dock or additional office space within the industrial unit.

Communication: Maintain open and effective communication with potential tenants. Understanding their business requirements and concerns allows you to demonstrate how your property can meet their needs. Being responsive and approachable can also build trust and foster positive relationships.

Customer Service: Providing excellent customer service can set your property apart. Respond promptly to inquiries, be available for property tours, and address any concerns quickly. A positive customer service experience can leave a lasting impression and influence a tenant’s decision to lease your property.

 

Attracting tenants to lease industrial real estate properties involves a multifaceted approach that combines highlighting the property’s unique features, leveraging the expertise of industrial real estate agents, enhancing your online presence, offering competitive pricing, maintaining the property, and understanding tenant needs. By implementing these strategies, you can effectively position your industrial property as a desirable option in the competitive Melbourne market.

For more information on how Just Commercial can assist you in attracting tenants and maximising the potential of your industrial property, visit Just Commercial. Their team of experienced industrial real estate agents in Melbourne is dedicated to helping you achieve your leasing goals.

 

At a glance

• Explore the unique characteristics of Melbourne’s industrial property market.
• Examine the advantages of selling, such as capitalising on market trends and unlocking liquidity.
• Discuss the benefits of long-term holding, emphasising steady income streams and potential appreciation.
• Analyse market conditions and investment goals as critical influencers on exit decisions.

 

Industrial property investments offer lucrative opportunities for investors, but the decision on when and how to exit these investments is equally crucial. Real estate investments require attention to factors like strategic planning, ability to adapt to changes, and exit strategy. However, most investors overlook the exit strategy in their investment planning.

Whether you are a new investor or a seasoned one, it is important to understand your options for exiting your investment. A well-thought-out exit strategy can be your success in estate investment. This blog post aims to guide industrial property investors through the nuanced process of choosing between selling and long-term holding.

 

Understanding the Industrial Property Market

 

Before delving into exit strategies, it’s crucial to grasp the unique characteristics of the industrial property market. Industrial properties include warehouses, manufacturing facilities, distribution centres, and research and development facilities. Unlike residential or commercial properties, industrial properties are primarily geared towards facilitating business operations rather than providing living or office spaces.

Melbourne, being a hub for industrial activities, presents both challenges and opportunities for investors. Industrial real estate agencies in Melbourne, like Just Commercial, play a pivotal role in navigating the intricacies of this market. Contact us for property management services related to industrial, office, and retail properties for sale and lease.

 

Selling Industrial Properties

 

Selling industrial properties is a key exit strategy for investors. As the name suggests, it involves selling your property, allowing you to earn profit on your investment.

 

Pros

 

Capitalising on Market Upswings: Investors can secure a significant ROI on their real estate investment in Melbourne if they time their property sale properly. Selling industrial properties during market upswings will result in substantial profits.

Portfolio Diversification: Selling industrial properties allows investors to diversify their portfolios. This is particularly beneficial if the market is showing signs of saturation or if there’s a desire to explore other investment opportunities.

Mitigating Market Risks: In dynamic markets, selling industrial properties may be a prudent strategy to reduce risks associated with economic downturns, regulatory changes, or technological advancements that could impact property values.

 

Cons

 

Capital Gains Tax: One of the primary drawbacks of selling industrial properties is the potential tax implications. Capital gains taxes can significantly reduce the overall profit from the sale.

Transaction Costs: The process of selling involves transaction costs such as real estate agent commissions, legal fees, and marketing expenses. These costs should be factored into the decision-making process.

Missed Long-Term Appreciation: Selling too soon may mean missing out on the long-term appreciation of industrial properties. If the market is projected to strengthen further, holding onto the property could yield higher returns in the future.

 

Long-Term Holding

 

Holding onto your property is another viable option for investors. This strategy allows you to generate income through rental and build equity over time. Here’s what you need to know about the good and bad about the long-term holding of industrial property.

 

Pros

 

Steady Income Stream: Industrial properties often provide a stable and consistent income stream through lease agreements. Long-term holding allows investors to enjoy regular rental income, providing financial stability.

Tax Benefits: Holding onto industrial properties can offer tax advantages, such as depreciation deductions. These tax benefits can enhance the overall return on investment.

Potential for Appreciation: Industrial properties have the potential for long-term appreciation, especially in areas experiencing economic growth or infrastructure development. Holding onto the property allows investors to capitalise on this appreciation.

 

Cons

 

Market Volatility: Industrial property values can be influenced by market volatility. Holding onto a property during economic downturns may result in lower rental income and reduced property values.

Opportunity Cost: Long-term holding ties up capital that could be invested in other potentially more lucrative opportunities. Investors need to weigh the opportunity cost of holding onto a property against exploring new investments.

Maintenance and Management: Long-term holding requires ongoing maintenance and management. Investors must consider the cost and effort involved in property upkeep, tenant management, and compliance with regulations.

 

Key Factors Influencing Exit Strategies

 

Market Conditions: Monitoring market conditions is essential when deciding between selling and long-term holding. Understanding current trends, demand-supply dynamics, and economic indicators can guide investors in making informed decisions.

Investment Goals: Clearly defining investment goals is paramount. Whether seeking short-term profits or aiming for long-term wealth accumulation, aligning exit strategies with these goals ensures a coherent and purposeful approach.

Potential Returns: Evaluating potential returns is crucial. Investors must assess the current and future income potential, capital appreciation, and overall profitability of the industrial property before deciding on an exit strategy.

Risk Mitigation: Identifying and mitigating risks is a fundamental aspect of exit strategy planning. Assessing the potential risks associated with market fluctuations, regulatory changes, and tenant turnover can help investors develop effective risk mitigation strategies.

 

Other Exit Strategies

 

While selling and long-term holding are primary exit strategies, investors should also consider alternative options, such as refinancing.

Refinancing is a strategic tool, empowering real estate investors to harness the equity in their properties through more favourable loan terms. This financial manoeuvre requires astute consideration of various factors, encompassing:

 

New Loans

 

Firstly, meticulous examination of the new loan terms is essential. This includes scrutinising the interest rate, loan amount, and repayment period. The investor should delve into potential monthly payments, ensuring a comprehensive understanding of how these terms will influence overall cash flow.

 

Cash Flow

 

Secondly, a careful evaluation of the impact on property cash flow is crucial. Investors need to discern whether the refinanced loan will bolster monthly income or alleviate expenses. This step is pivotal in gauging the profitability and sustainability of the investment.

Interest Rate Risks

 

Lastly, attention must be given to interest rate risks, particularly when opting for adjustable-rate mortgages. A thorough understanding of how fluctuations in interest rates may affect the investor’s financial position is imperative. This foresight enables proactive risk management and ensures the refinancing strategy aligns with long-term financial objectives.

Joint Ventures

 

Collaborating with other investors through joint ventures can provide an exit strategy that combines the benefits of selling and holding, offering shared risks and rewards.

 

In conclusion, the decision between selling and long-term holding in the industrial property market is a nuanced process that requires a comprehensive analysis of various factors. By understanding the advantages and disadvantages of each strategy and considering market conditions, investment goals, potential returns, and risk mitigation, investors can make informed choices aligned with their financial objectives.

Additionally, exploring alternative exit strategies, such as refinancing, adds flexibility and sophistication to an investor’s toolkit. In the dynamic landscape of industrial property investments, strategic and well-informed exit planning is the key to maximising returns and ensuring long-term success.

 

At a glance

• Navigate risks with expertise: Trust Just Commercial to guide you through the complexities of industrial property investment.
• Capitalise on promising opportunities: Identify strategic locations, adaptive reuse projects, and emerging trends for maximum returns.
• Secure long-term success: With Just Commercial’s tailored solutions and proactive strategies, unlock the full potential of industrial property investment.

 

Industrial property presents investors with unique opportunities for both substantial rewards and significant risks. As an integral component of the real estate market, industrial properties encompass warehouses, factories, distribution centres, and manufacturing facilities.

In the Australian market, particularly in the vibrant landscape of Melbourne’s South East, the demand for industrial real estate for sale or lease is robust, driven by various factors such as population growth, urbanisation, and the evolution of e-commerce.

At Just Commercial, our expertise lies in navigating the intricate realm of industrial property investment, providing our clients with tailored solutions to capitalise on promising opportunities while mitigating potential pitfalls.

Through this comprehensive guide, we will delve into the intricacies of investing in industrial property, exploring the key factors that influence success and offering invaluable insights on identifying lucrative ventures in the dynamic Australian market.

 

Navigating the Risks of Industrial Property Investment

 

Investing in industrial property offers lucrative prospects, but it also comes with a set of inherent risks that demand careful consideration and strategic planning.

 

Higher Initial Investment

 

One of the primary challenges of investing in industrial property is the substantial initial investment required. Unlike residential properties, industrial real estate for sale often commands a higher price tag due to factors such as size, location, and specialised infrastructure. This can pose a barrier to entry for some investors, necessitating thorough financial planning and access to adequate capital.

At Just Commercial, our team of experts assists clients in navigating these economic considerations, offering tailored solutions and leveraging our extensive network to identify investment opportunities that align with their budgetary constraints and long-term goals.

 

Specialised Knowledge Needed

 

Another risk inherent in industrial property investment is the need for specialised knowledge and expertise. Unlike other sectors of the real estate market, industrial properties come with unique requirements and considerations, ranging from zoning regulations to environmental compliance and logistical infrastructure.

Investors must possess a deep understanding of these nuances to assess the viability of potential investments accurately. Just Commercial’s seasoned professionals boast extensive experience in the industrial real estate market, offering unparalleled insights and guidance to clients seeking to navigate the complexities of property acquisition and management.

 

Tenant-Specific Risks

 

Tenant turnover and occupancy rates are critical factors that can significantly impact the profitability of industrial property investments. Tenant-specific risks, such as insolvency or operational challenges faced by lessees, pose a threat to rental income and property value. Additionally, fluctuations in market demand and shifts in industry dynamics can affect the attractiveness of industrial properties to potential tenants.

Through our comprehensive tenant screening processes and proactive management strategies, Just Commercial assists clients in mitigating these risks, ensuring stable cash flows and maximising the long-term value of their investments.

 

Economic Sensitivity

 

Industrial property investments are inherently sensitive to economic fluctuations and broader market trends. Changes in economic conditions, such as shifts in supply chain dynamics or fluctuations in consumer demand, can impact the demand for industrial space and rental rates. Moreover, industrial properties are often closely tied to specific industries, making them vulnerable to sector-specific downturns.

To address these challenges, investors should focus on up-to-date market analyses and trend forecasts, which will enable them to adapt their investment strategies and capitalise on emerging opportunities.

 

Maintenance and Operational Costs

 

Maintaining and operating industrial properties entail significant expenses, including routine maintenance, repairs, and utility costs. Investors must budget accordingly to cover these ongoing expenditures and ensure the optimal performance of their assets. Additionally, unforeseen maintenance issues or regulatory compliance requirements can impose additional financial burdens and disrupt cash flow.

 

Unlocking the Rewards of Industrial Property Investment

 

Investing in industrial property offers an array of compelling benefits that appeal to savvy investors seeking stable income streams, long-term growth potential, and portfolio diversification.

 

Steady Income Source

 

Industrial properties are renowned for their ability to generate consistent and reliable rental income. Unlike other commercial real estate sectors, such as retail or hospitality, industrial leases typically feature longer lease terms and stable tenants, providing investors with a steady stream of rental revenue. This predictable cash flow serves as a cornerstone of industrial property investment, offering financial stability and resilience in varying market conditions.

To make the most of your investment, work with industrial real estate agents who can help identify high-quality tenants and negotiate favourable lease terms, ensuring you enjoy robust and sustainable income streams from their industrial assets.

 

Long Term Lease

 

One key attraction of investing in industrial property is the prevalence of long-term lease agreements. Industrial tenants often seek stable, secure premises to support their operations, leading to extended lease terms that can span multiple years or even decades.

These extended leases provide investors with greater predictability and continuity, minimising vacancy risks and reducing the administrative burden associated with frequent tenant turnover.

At Just Commercial, we specialise in facilitating long-term lease agreements that benefit both landlords and tenants, fostering mutually beneficial relationships and enhancing the stability of industrial property investments.

 

Potential for Appreciation

 

Industrial properties have demonstrated a strong track record of capital appreciation over the long term, driven by factors such as infrastructure development, population growth, and increasing demand for logistics and warehousing facilities.

As one of Melbourne’s leading industrial real estate agents, Just Commercial possesses unparalleled market insights and foresight, enabling us to identify emerging growth corridors and investment opportunities with significant appreciation potential. Whether through strategic acquisitions, value-added initiatives, or proactive asset management, we empower our clients to capitalise on the upward trajectory of industrial property values and achieve exceptional returns on their investments.

 

Diverse Investment Options

 

Industrial property investment offers a diverse range of options to suit investors’ preferences and risk profiles. From traditional warehouses and distribution centres to specialised facilities such as cold storage units and manufacturing plants, industrial properties encompass a broad spectrum of asset types and investment strategies.

This diversity allows investors to tailor their portfolios to align with their investment objectives, whether seeking stable income, capital appreciation, or portfolio diversification.

 

Limited Tenant Turnover

 

Unlike the retail or office sectors, which may experience higher tenant turnover rates, industrial properties typically exhibit lower vacancy rates and more excellent tenant retention. Industrial tenants often establish long-term relationships with landlords, benefiting from the strategic location, functional design, and operational efficiencies of their leased premises. This limited tenant turnover translates to reduced leasing costs, lower vacancy risk, and enhanced income stability for industrial property investors.

 

Identifying Promising Opportunities in Industrial Property Investment

 

In a competitive market like the industrial property market, identifying promising opportunities requires a strategic approach, informed decision-making, and a thorough understanding of market trends and dynamics.

 

Location, Location, Location

 

One of the most critical factors in identifying promising industrial property opportunities is location. Strategic positioning within crucial logistics hubs, transportation networks, and growth corridors can significantly enhance the desirability and value of industrial assets.

Proximity to major highways, arterial roads, ports, and urban centres facilitates efficient distribution and access to markets, making properties in these prime locations highly sought after by tenants and investors alike.

Just Commercial can help you identify strategic locations with high growth potential and guide you toward opportunities that offer optimal connectivity, accessibility, and long-term appreciation prospects.

 

Adaptive Reuse and Redevelopment

 

In addition to traditional industrial properties, opportunities for investment may also arise from adaptive reuse and redevelopment projects. As urbanisation and demographic shifts reshape the built environment, obsolete industrial facilities present opportunities for repurposing into mixed-use developments, creative workspaces, or alternative asset classes.

By leveraging our expertise in property development and market analysis, you can identify underutilised properties with redevelopment potential. We can also guide our clients through the planning and approval process to unlock value and maximise returns on investment.

 

Emerging Trends and Industry Dynamics

 

Staying abreast of emerging trends and industry dynamics is essential for identifying promising opportunities in industrial property investment. Shifts in consumer behaviour, technological advancements, and supply chain logistics can create demand for specialised industrial facilities, such as fulfilment centres, data centres, and advanced manufacturing facilities.

By monitoring market trends and anticipating future demand drivers, investors can position themselves ahead of the curve and capitalise on emerging opportunities in niche sectors.

 

Value-Add Strategies

 

Investors can also identify promising opportunities in industrial property through value-add strategies that capitalise on inefficiencies or underutilised assets. Value-add initiatives such as property renovations, infrastructure upgrades, and lease renegotiations can enhance the income-generating potential and overall value of industrial properties, thereby increasing investor returns.

You can rely on Just Commercial’s tailored advisory and asset management services to help you identify value-added opportunities, implement strategic enhancements, and optimise the performance of your industrial property portfolios.

 

In conclusion, by understanding and mitigating risks, leveraging emerging opportunities, and staying ahead of market trends, investors can unlock the full potential of industrial property investment. Whether seeking steady income streams, long-term growth, or portfolio diversification, we empower our clients to navigate the intricacies of industrial property investment with confidence and achieve their financial goals.

With our unwavering dedication and industry-leading insights, investors can capitalise on the promising opportunities that await in the vibrant landscape of industrial real estate.

The potential for substantial rewards is matched only by the inherent risks and complexities. As trusted industrial real estate agents in Melbourne, Just Commercial remains committed to guiding investors toward success by providing unparalleled expertise, personalised service, and innovative solutions.

 

 

At a glance

• Explore Southeast Melbourne’s top industrial property markets, including Dandenong, Moorabbin, Cheltenham, Oakleigh, Keysborough, Springvale, and Mulgrave.
• Just Commercial helps navigate these thriving markets and discover prime industrial real estate opportunities with expert guidance for investors seeking success in Southeast Melbourne.

Nestled in the heart of Victoria, the South-eastern region of Melbourne boasts a thriving industrial landscape that continues to attract investors, businesses, and entrepreneurs alike.

If you’re looking for prime industrial real estate opportunities, you’re in the right place. Just Commercial, your trusted partner in navigating the dynamic world of industrial property, is here to guide you through the most promising markets in this vibrant part of Melbourne.

In this blog post, we’ll take you on a journey through the top industrial property markets in Southeast Melbourne, unveiling the hidden gems and investment hotspots that await those seeking to establish or expand their commercial ventures in this thriving region.

Dandenong’s Industrial Real Estate

Dandenong, strategically located just 30 kilometres southeast of Melbourne’s central business district, is a standout choice for property investors.

Its exceptional access via the Monash Freeway and EastLink connects swiftly to Melbourne’s core and the Port of Melbourne, perfect for logistics and distribution.

The suburb’s industrial diversity, highlighted by a robust manufacturing sector, ensures a stable tenant base and long-term investment viability.

The industrial real estate in Dandenong stands out as one of the nation’s most tightly held industrial markets, where property availability is notably limited. This scarcity suggests potential asset appreciation and points to a market characterised by competitive demand, a boon for investors seeking robust rental incomes.

Furthermore, Dandenong’s appeal is bolstered by the pioneering Dandenong Logis Estate, Victoria’s first eco-industrial business park, promoting sustainability and aligning with modern environmental trends.

With low vacancy rates and established tenants like Startrack, Spicer Paper, and Ego Pharmaceuticals, Dandenong is a top choice for industrial property investors.

Moorabbin’s Industrial Real Estate

Moorabbin stands out as an appealing suburb for industrial property investors, boasting a combination of strategic advantages and robust economic fundamentals.

Moorabbin’s key allure is its proximity, just 15 km southeast of Melbourne’s CBD, making it an ideal location for industrial investments due to its closeness to the metropolitan area.

This strategic proximity facilitates efficient access to a vast customer base within the city while also enabling streamlined distribution and logistics operations.

Furthermore, Moorabbin’s excellent transportation infrastructure enhances its appeal as an investment destination. The suburb is intricately connected to major road networks, including the Nepean Highway and the Moorabbin Bypass, ensuring seamless access for businesses engaged in logistics and distribution.

Notably, the presence of Moorabbin Airport in the vicinity further amplifies its appeal, particularly for companies with aviation-related activities.

This well-developed infrastructure benefits existing businesses and underpins future growth and expansion potential, making Moorabbin a prime choice for industrial property investors.

The suburb’s diverse industrial base adds to the investment appeal of industrial real estate in Moorabbin. Moorabbin boasts a diverse industrial estate with many owners and tenants involved in wholesale activities, technical services, and construction and building services.

This diversity adds resilience and dynamism to the local industrial property market, attracting investors seeking a wide range of tenants. Moorabbin’s multifaceted industrial landscape maintains its vibrancy and appeal for investors capitalising on its strategic location.

Cheltenham’s Industrial Real Estate

Cheltenham, a suburb 18 km southeast of Melbourne’s Central Business District, emerges as an enticing commercial industrial property investment hub. Its strategic location, near the vibrant cities of Bayside and Kingston, adds to its appeal.

This adjacency to thriving local government areas, particularly Bayside, with a population exceeding 100 thousand, creates a robust consumer base for businesses operating in the suburb, making it an attractive prospect for industrial property investors.

Cheltenham is also home to the popular Westfield Southland shopping centre, primarily located in the northern part of the suburb. This presence not only enhances the convenience for residents but also provides opportunities for smaller retailers, banks, cafes, and various commercial enterprises to flourish in the area.

Cheltenham’s accessibility is bolstered by Cheltenham and Southland railway stations, ensuring smooth transportation for businesses and commuters.

The diverse commercial landscape, featuring businesses like Industrial Dynamics PTY LTD, Steel Foxy PTY LTD, and Quantum Technology PTY LTD, fosters a dynamic industrial ecosystem with various investment prospects.

With its strategic location, thriving local communities, and diverse business presence, Cheltenham is a prime choice for commercial and industrial property investors seeking a well-rounded investment opportunity in Melbourne, Victoria, Australia.

Oakleigh’s Industrial Real Estate

Oakleigh emerges as a compelling choice for industrial property investment, driven by a range of advantageous features. This suburb’s heart lies a large and historic Central Business District (CBD) spanning nine city blocks.

This bustling hub showcases several multi-storey office buildings, banks, and retail complexes and offers a vibrant atmosphere with numerous cafes, hotels, restaurants, and retail shops. This thriving CBD contributes to the local economy and is a magnet for businesses and potential tenants.

Strategically located between the Nepean and Princes Highway, Oakleigh provides easy access to key transport routes, including Warrigal Road, Huntingdale Road, Clayton Road, and North Road, facilitating efficient logistics and distribution.

The proximity to the Princes Highway allows swift connections to Melbourne’s CBD, while Oakleigh railway station offers suburban rail services.

Notably, Oakleigh boasts a diverse industrial landscape, with major industries such as Assa Abloy, a global leader in electronic and mechanical lock design and fabrication, calling the suburb home.

This presence of prominent industries underlines the area’s industrial viability and attractiveness for investors seeking a thriving and dynamic location for their industrial property investments.

Keysborough’s Industrial Real Estate

Keysborough, situated just 27 kilometres southeast of Melbourne’s Central Business District within the City of Greater Dandenong local government area, offers a strategic location that aligns with the diverse needs of its residents.

Families with children, professionals, and retirees call Keysborough home, creating a diverse and stable community that can provide a steady business customer base.

Furthermore, Keysborough boasts the convenience of the local Parkmore Shopping Centre, a bustling hub featuring banks, salons, travel agencies, grocery stores, cafes, and restaurants.

This thriving commercial centre enhances the local quality of life and serves as a magnet for businesses, further underlining the suburb’s potential as a commercial and industrial investment destination.

Additionally, Keysborough’s connectivity is a major draw for investors. It is seamlessly linked to neighbouring suburbs like Dandenong and Bangholme via the EastLink freeway.

Keysborough’s exceptional transportation infrastructure ensures efficient logistics and access for employees and customers. With its strategic location, diverse population, thriving commercial centre, and excellent connectivity, it’s a compelling choice for commercial industrial property investments.

Springvale’s Industrial Real Estate

Springvale is driven by a strategic blend of location advantages and a thriving business ecosystem. Springvale’s two railway stations, Springvale and Sandown Park, seamlessly connect to Melbourne’s rail network for transportation.

Additionally, Springvale benefits from Minaret College, the largest co-educational Islamic school in southeastern Melbourne, enhancing its educational landscape.

This attracts a diverse and skilled workforce to the area. Additionally, Springvale enjoys easy connectivity to the Melbourne CBD via the Monash Freeway, enhancing accessibility for businesses and ensuring efficient supply chain operations.

Furthermore, the suburb houses notable manufacturing giants such as MetalCorp Steel PTY LTD, Solenis Australia PTY LTD, and Asaleo Care Limited, underlining its status as an industrial hub.

This thriving industrial base, combined with its strategic location and accessibility, positions Springvale as a prime destination for commercial industrial property investment, promising opportunities for investors seeking a dynamic and well-connected business environment.

Mulgrave Industrial Real Estate 

Mulgrave, situated in Melbourne’s southeastern region within the City of Monash, offers compelling features that make it an excellent choice for commercial industrial property investment.

Its strategic location, just 25 km from Melbourne’s CBD, ensures easy access to the city’s heart via the nearby Monash Freeway, a vital transport corridor.

Additionally, the EastLink freeway provides a convenient link to the Mornington Peninsula and picturesque seaside towns, enhancing accessibility and potential market reach for businesses.

This suburb enjoys proximity to the upscale Chadstone Shopping Centre, boasting over 530 stores, including renowned luxury brands like Dior, Chanel, and Tiffany & Co. This adds to the local amenities and indicates a strong consumer base.

Mulgrave hosts diverse businesses, including manufacturing units such as DSM Limited, Mulgrave Machine Works LTD, East Coast Hydraulics, and recycling and auto service. Last but not least, the presence of the 45-acre Mulgrave Marine Industrial Park further underscores its suitability for industrial and commercial business activities, making it an ideal suburb for those looking to invest in Melbourne’s thriving industrial sector.

Click through to read more about this article on the Commercial Real Estate website.

With the outcome of the May 21 Federal Election now firmly resolved and with a new hand on the Commonwealth helm with confirmed majority control, we believe that the way forward is now much clearer.

The new Treasurer has identified a range of fundamental economic issues that need to be addressed. Australia’s accumulated national debt after the COVID responses being foremost.

Then there are the issues that need hands-on and effective government responses, including the level of inflation, interest rates, energy costs, employment opportunities, the revival of Australian manufacturing, and the focusing of technology on creating new, value-adding industries and businesses.

Although there may be interruptions in the application of solutions, we can see positives for the wider commercial and property market, especially since the elimination of some of the difficulties will alone be positive.

Australia’s new Treasurer is quoted in an article in the Australian Financial Review on May 25.

The article is headlined, “Chalmers plays down hopes of ‘quick fix’ to ills”.

It goes on to quote the Treasurer “I want to be honest and upfront about it. It will take some time for us to turn around these big challenges. I want to engage the Australian people in this big conversation about our national economic challenges.”

That seems to use to be the signal for business as usual with a flicker of optimism.

As specialist commercial and industrial property agents, Just Commercial is committed to working with our owners and tenants.

We are as close as the telephone and email, and we are available to talk at any time on any property matters which you may have.

 

When it comes to investment and savings, the property market has always been considered a safe option. This is particularly evident in the sector’s recent surpassing of $9 trillion as Australian’s continue to invest and benefit from commercial and residential property. Unfortunately, not all investors are educated on the hidden costs and taxes that could eat up their returns.

Capital gains tax (CGT) is one of these hidden elements and how much it can take from your return depends on a variety of factors. Since 1985, you have been required to pay a certain percentage as a levy to the Australian Tax Office (ATO) on the capital gain or profit in the year you sell or dispose of your assets. Assets can be house, land, shares, contractual rights, and collectibles above a specific value. 

There are a lot of factors that determine the amount you pay in capital gains taxes, but of these, the nature of your property is the most crucial factor. The ATO has well-founded reasons for this.

If you are short on time, here is the crux – you pay less or no capital gains tax for selling a residential property that has been or is your primary place of residence for a certain period. If you’re dealing in commercial real estate, you are paying taxes on your profits and the amount varies based on specific parameters. Capital gains tax is not a blanket taxation system, and you can benefit from knowing the details.

Residential Property and Capital Gains Tax:  

Any property zoned, used or intended as a dwelling for an individual, group, or family is considered a residential property. This can be a tract of land or building that is intended to be used as a place of residence by the owner or the tenant. Single, as well as multifamily unit apartments, are considered residential property.

You will be exempt from capital gains tax on the sale of a residential property if:

• You or your family live in it, your belongings are in it, your mailing and electoral roll address is assigned to it and it is connected to utilities such as phones, gas, and power.
• The property is not more than 2 hectares and is used primarily for residential purposes.
• You build a new house or renovate an existing one and live in it for three months within four years of purchasing it.
• You intend to buy a new property that will be your primary residence. To qualify for this exemption, you have to shift to the new home within six months and register it as your primary place of residence.
• You lived in the property continuously for at least three months in the 12 months before the sale.
• The property didn’t generate any rental income in the 12 months and it wasn’t your principal place of residence.
• You require full-time care and cannot live independently.
• You live elsewhere but retained the property as your primary residence.
• You lived there for three months and rented it out for up to six years as part of what is known as the six-year absence rule.
• You live elsewhere, but you have not earned from it.
• You live in it as your primary place of residence for the base period, renovate it and sell it.

You Are Not Exempt From Capital Gains Tax If:  

• Some portions of your home are rented out or used for income generation, like renting out through Airbnb, running your own small business, among others. You will be taxed for the period and the floor space the commercial venture occupies in your residence.
• But if you are living elsewhere and renting the entire property – you will be exempted from capital gains tax for six years because of the main residence exemption rule.

Commercial Property and Capital Gains Tax

Real estate properties that are used or intended to be used for business activities aimed at generating profits are known as commercial properties. Also known as investment or income properties, these include commercial properties and industrial properties.

The concept of capital gains tax on commercial properties is the same – you pay tax on the gains you make after deducting your base cost and maintenance costs. However, there are some key differences in both types of properties, and just like residential properties, there are some discount provisions for commercial property capital gains tax as well.

• Commercial properties are generally not exempt from tax though certain exemptions and discounts are available based on ownership and usage of the property.
• Unlike families, a company is not eligible for the 50 per cent discount on assets held for more than 12 months.
• Farms and home-based businesses are treated differently for tax purposes.
• If you are selling shops, factories, or offices, you might also have to pay GST unless it is sold as part of a GST-free sale.

Discounts and Offsets Available for Commercial Property:   

As said earlier, capital gains tax for commercial property varies from one to another depending on the way they are managed:

• If an individual or a trust owns the commercial property for over 12 months, they are eligible for a 50% capital gains tax exemption.
• If the commercial property is managed by self managed super funds, they are eligible for a 33% discount on the capital gains tax
• However, if a company owns the commercial property, it is not eligible for either of these exemptions.
• Small business owners can get exemptions as part of the ATO’s 5-year exemption, 50% active asset reduction, retirement exemption, and rollover when selling their own premises.  

Like any piece of accounting, calculating capital gains tax on residential property can be an arduous task. We advise you to talk with your accountant to access advice specific to your case and circumstances. With a combined experience of over 100 years, Just Commercial’s team of directors assist commercial and industrial property investors in making smart investment decisions. Get in touch with us to discuss how we can help you yield greater returns from your investment in commercial and industrial properties in Melbourne.

Off the back of 2020, a year of record low vacancy rates and record levels of industrial leasing activity, speculative industrial real estate projects along the east coast have now topped one million square meters.

Industrial property has been outdoing Australia’s hot housing sector, which is representative of what experts are calling the pandemic property market. While industrial property is dealing with record-low vacancies, the residential sector is seeing record high vacancies. A stark comparison of two markets within the same country.

The drive from the rise in online shopping flipped industrial property on its head, and as a result, a wall of institutional capital is looking for a way into the booming sector, with an unprecedented return of 23 per cent last financial year.

Nationally the vacancy rates for industrial and logistics facilities (greater than 5000 square metres) fell to 2.8 per cent in the third quarter of 2021, which is down from 5.1 per cent at the same time in 2020.

Australia’s hot housing market isn’t a patch on warehouse demand | @simonjohanson https://t.co/AUiuQgrlHL

— The Sydney Morning Herald (@smh) October 22, 2021

As a result of this limited supply of high-quality industrial properties, businesses that previously relied on housing development, are now turning around to develop and deliver modern, sustainable prime-grade industrial real estate assets.

In fact, this demand for industrial space is forecast to remain well above the long-term average over the next five years, with gross demand expected to exceed approximately 3.8 million square metres by 2024.

So, this has naturally led to more development projects in the works than ever before for the industrial market. Rising developer confidence is showing a sharp turnaround from last year when development projects were deferred due to uncertainty caused by the pandemic. This is why developers are now pushing to speed up the delivery of their new industrial assets and to keep up with the continuous demand.

In Sydney, more than 380,000 square metres of industrial developments are expected to be completed by next year, which is the highest level of industrial development in the area since 2008. While in Melbourne, almost 500,000 square metres of projected development are due to be completed.

More than half of the projected industrial developments being built in Melbourne are warehouses where construction has begun, with no tenants locked in. These will be especially important for an area where the vacancy rate for prime industrial real estate has fallen to just 1 per cent.

Now that there is much more stability throughout Australia’s largest capital cities, it is understandable that developers really want to speed up the construction of all of their new industrial developments. If the future projections are correct, it won’t necessarily matter if construction is completed in 2022, or 2024 the demand and low vacancy rates are still expected to stay put across Melbourne and Sydney.

Industrial property is currently the country’s most sought after property sector and is only expected to continue growing over the next five years.

So, will you be looking to get your hands on an industrial asset in the future?