Despite COVID-19’s impact on the global economy and news reports repeating the same message that businesses are experiencing a challenging time, Upstate has actually witnessed a sense of growth in the Northern Beaches region of Sydney.
Enquiries for commercial properties in the area, both for buyers and tenants, have been quite high. In fact, those numbers tripled since April!
This kind of situation has gone against many assumptions, and we believe that the rise in activity is bucking the trend in a good way.
Take for instance this recent property that’s just hit the market;
For Sale: 3/20A Waine Street, Freshwater
This commercial property in Freshwater is on the market with a current and long-standing tenant, which has a remaining 2 years of tenancy on their 5 year lease, with a high chance of renewing.
This is a very appealing purchase, with the new investors immediately earning a 5% yield on rental income.
And this is not the only property available with so many perks. We’re noticing a lot of interest in commercial properties like this one, with a high-quality, long-term tenant already signed up, providing a guarantee of income as a fully leased investment.
This has made commercial property purchases an enticing option due to the high and stable form of income-generation potential.
Why do we think this is happening?
Despite restrictions starting to lift, there’s no denying that the pandemic has shifted a lot of aspects in our lives – but one thing we’re sure of is this: commercial real estate will remain relevant, both economically and socially.
The recent interest we have witnessed supports this. Here are a few reasons why:
Some local businesses are expanding
There are companies who have pivoted their model over the last few months and are now looking for more space to upgrade their operations in the post-COVID era.
Businesses which have employees who worked temporarily at home during the crisis are also seeking to move their offices nearer to the beach for a lifestyle change.
Commercial properties like those located in the Northern Beaches provide them with greater flexibility, while helping them manage occupancy costs
Investors want to benefit from cash flow opportunities
Many investors are looking for property investments that will provide recurring income. Commercial properties are great options for this, as they also offer equity appreciation and tax benefits, while being a steady source of cash flow.
Commercial buyers are searching for long-term yields
There are potential commercial buyers in the market right now who want the stability of long-term tenants, so they don’t have to spend money on finding one right after their purchase.
Since rents are starting to shift more towards longer-term, this could also be a great selling point if you’ve been considering it.
Big commercial property results in May!
While this is all well and good, the proof really is in the numbers. Upstate has leased a record of 15 commercial properties in May across the Sydney Northern Beaches region! See below for some examples.
Commercial properties provide a win-win situation for all, which makes them an extremely attractive investment right now.
So, whether you want to sell commercial property, buy commercial property or lease a commercial property – here at Upstate, we have a team of commercial real estate specialists who can help you find yourself in a better place.
Here are some of our Northern Beaches commercial properties that are currently for sale and for lease:
Want to discuss your commercial property needs?
We’re always here for you. Speak to your local Upstate team today and we’ll show you the possibilities that are earning excellent results.
