Frequently Asked Questions
- What is commercial and industrial real estate?
- Some people talk in feet and square feet and others in metres and square metres and it's confusing. What does it all mean?
- What is the difference between a warehouse and a factory?
- Is commercial and industrial real estate a better investment than residential real estate?
- How can commercialrealestate.com.au help me?
- Why should I have my commercial and industrial property managed by an agent, surely anybody can collect the rent?
- What about the agents fees and charges?
- How do I choose the right agent?
- My business has grown and I need to relocate to larger premises. I have several years remaining on my existing lease. What can I do ?
- I have questions that are not covered here, where do I go for help?
Q - What is commercial and industrial real estate?
A - Commercial real estate is typically retail shops and offices while industrial real estate generally refers to factories and warehouses. The term "commercial real estate" is generally accepted these days as covering industrial as well as commercial real estate.
Q - Some people talk in feet and square feet and others in metres and square metres and it's confusing. What does it all mean?
A - Despite the change over from imperial to metrics the old ways still persist
as many people still cannot fully relate to metrics. The conversions are:
Length:
1 metre=39.3701 inches
1 metre=3.28084 feet
Area:
1 square metre=10.764 square feet
1 hectare=2.47105 acres
Q - What is the difference between a warehouse and a factory?
A - Warehouses are primarily for storage and distribution and need to have a high roof line for pallet racking and other storage (6 meters minimum) and good access for large vehicles carrying containers. Factories are for manufacturing and are less reliant on height depending on the manufacturing industry involved. These premises would perhaps need to be in close proximity to public transport to cater for employees.
Q - Is commercial and industrial real estate a better investment than residential real estate?
A - It's a matter of opinion in many respects, however well located and well managed commercial or industrial real estate can perform extremely well and can pay huge dividends over the long term. Commercial and industrial real estate generally offers higher returns than residential real estate with less tenant turnover and tenancy problems. Remember that commercial and industrial tenants generally take minimum lease terms of 3 years while residential tenancies are often very short term which is costly as every time your property comes vacant there is loss of rent, advertising costs and leasing fees.
Q - How can commercialrealestate.com.au help me?
A - If you own, lease or need to buy or sell commercial or industrial real estate commercialrealestate.com.au is an invaluable tool that will help you achieve your aims quickly and efficiently. The agents and other professionals on this site are fully qualified to provide the correct solutions to your needs. Search for real estate in any State of Australia. Choose any agent in any State with the confidence of knowing that they are fully conversant in all aspects of commercial and industrial real estate. Submit your real estate directly onto the site and the agents most able to assist will contact you without delay. Only Member Agents will see the entry and respond to you if they can assist.
Q - Why should I have my commercial and industrial property managed by an agent, surely anybody can collect the rent?
A - Collecting the rent is only part of the job. When you engage a specialist agent to manage your commercial and industrial property they do just that - they manage your property. Management means more than just collecting the rent. It involves: Advising on acceptable lease structures so that your investment not only retains its value but also has growth built in wherever possible. Negotiating lease terms with the tenant to obtain results that ensure that the value of your property is enhanced by the lease and not restricted or worse - devalued. Dealing with your tenant in an expert, professional manner regarding queries and problems that inevitably arise from time to time with the property and/or tenancy - these negotiations should only be handled by professionals to achieve the best outcome. Ensuring the property is maintained. Advising the owners on rental and sale values and generally keeping them informed of market trends.
The future value of your property is dependent in no small way on the quality of it's management - to take chances with a non specialist or to adopt a "do it yourself" approach is unwise and likely to result in rough running for your investment and lower returns.
Q - What about the agents fees and charges?
A - Agents fees are generally not regulated and are negotiable. Any successful investor will tell you that if you choose the right agent they are worth far more than the fees they charge. Many wealthy property investors owe their success to their choice of professional real estate agent and they did not gain that agent's loyalty by cutting fees. Never choose an agent on the fee structure alone. The final result is where the money is made not through negotiating lower fees.
Q - How do I choose the right agent?
A - Start right here on commercialrealestate.com.au contact several, ask if they have expertise with the type of property you are interested in and choose the one you feel most comfortable with. If you're unsure who to choose, submit your real estate directly on the site. The Member Agents that feel they can help you will then contact you.
Q - My business has grown and I need to relocate to larger premises. I have several years remaining on my existing lease. What can I do?
A - This situation requires coordination as you need to locate and secure new premises and sub -let or assign your existing lease to a new tenant with as little time lapse as possible between the two transactions otherwise you will be paying double rent. Paying double rent for a short period of time at least is highly likely depending on demand for property in your location. Choose an agent from our find an agent in your State and one or more agents will contact you to offer a solution.
Q - I have questions that are not covered here, where do I go for help?
A - Contact a Member Agent in your State or e-mail us at support@commercialrealestate.com.au
