Commercial property trends for 2019
Commercial property investment is gaining momentum. Large offshore investors are increasingly looking to our commercial property market and potential local investors are taking notice.
Last year, Blackstone – one of the world's largest commercial property investors – bought seven office buildings on Auckland's waterfront. With our growing tourism industry and relative economic safety, we can expect more international investors to continue this trend.
Combine this with residential property market frustrations and local property investors are turning their eye to commercial property as well. New commercial developments, hotels and industrial properties, as well as less traditional properties such as student accommodation and parking buildings, are all expected to attract investor interest in 2019. Retail spaces in our main centres – Auckland, Wellington and Christchurch – will also remain popular with investors.
Making the move from residential property investment to commercial property investment can be daunting but there are many benefits. Usually, the rental yield for commercial properties is higher than residential properties, which means higher returns. Commercial leases tend to be longer and there is usually lower tenancy turnover. Maintenance costs are also lower as much of the responsibility falls to tenants, unlike residential properties. And finally, our most commonly used commercial lease in New Zealand ensures rent will never decrease to below what it was at the beginning of the lease agreement.
That’s a lot of good reasons to invest in commercial property.
Here’s how to get started with your first commercial property investment: What to look for in a commercial property investment
Now, why not beat the international big guns and check out all the commercial properties for sale: NZ commercial properties for sale