Thinking of buying a commercial property? Here are a few areas every commercial property buyer should investigate:

1. Yield – Long-term average yields for retail property are between 4.5-7 per cent, between 6.5-7.5 per cent for office property and between 7.5 per cent and 8 per cent for industrial property

2. Rent - Strong positive cash flow is important, particularly if you plan to use the cash generated by the property to finance a loan on the property.

3. Capital gains - Regardless of whether you are a business owner or an investor, you want the property you buy to appreciate in value over the long-term.

4. Understanding the risks – Commercial property is not without risks, a number factors including: Economic growth, interest rates and employment data could have a direct impact on the value of your property

5. Researching the property – Depending on your level of personal expertise, you may want to bring in an expert to assist you with assessing the property including: the quality of the building, land and building measurements and potential for expansion etc.
Source: realcommercial.com.au

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