Category: Perth Commercial Real Estate (page 1 of 3)

Finding a Commercial Property Investment in Perth

If you’re in the market for a commercial real estate investment in Perth, there is much to consider. You want to choose the right property type, in the right location, and at a time that will provide you the best possible return.

In this article, we outline some key factors to help guide your search for a commercial property investment in Perth.

Why a commercial property investment?

Property investors in Perth can generate a profit by allowing tenants to lease their commercial space. Compared to other property investments such as residential, commercial generally offers a higher cash flow and therefore greater yields.

Another benefit is that commercial tenants are usually more responsible as they have a reputation to withhold. Plus, the lifespan of a lease can be negotiated to last in excess of 5-10 years in some cases. These advantages of commercial investments are what make them more secure than a residential investment, from an investors point of view.

For more differences between residential and commercial investments, see this article.

Commercial Property Types

Perth is home to a wide range of commercial property styles, each with varying operational needs.

Office – An office space is the backbone of almost every business structure. Depending on the industry and needs of the business, an office may be located deep in the heart of the CBD, or in a more suburban area.

When investing in an office, location plays a leading role. Most tenants will want an office in close proximity to transport routes, and in an area where employees will enjoy the surroundings. Consider nearby dining facilities and natural open spaces for hours outside of work and unlike other industries, most businesses prefer an office near companies with similar interests.

Industrial – Investments in industrial properties can range from a small distribution centre to a large manufacturing site with major logistics and heavy machinery. Industrial properties often feature very different structural facilities like warehouses, storage yards, offices, and wide loading bays.

Like a standalone office, tenants will want an industrial property located near food outlets and sufficient transport routes, especially if they require access from heavy trucks. Other crucial amenities include a kitchen/dining area, bathrooms, and office space.

Retail – A retail property may be a streetside shopfront or a shopping centre with many tenants. These sites should be optimised for as much foot traffic as possible, and often require back-of-house access for deliveries.

The property will fetch a higher rental yield if it presents opportunities for advertising using existing signage or is naturally in a highly visible position. If the retail site is a centre with multiple units, the property should cater to a variety of tenants and provide some common areas that can be utilised by all – such as bathrooms.

Additionally, a multi-functional facility would be ideal if it has room to expand as the variety of retail outlets will attract a wide range of consumers.

Mixed Use – A mixed-use commercial property is like a retail shopping centre whereby it is home to multiple tenants. A commercial strata property might take the shape of an office complex or shared warehouse and needs the communal facilities to satisfy all parties.

Much like other commercial properties, a strata property management system is the best way to ensure all tenants requirements are met.

Speciality – ACommercial properties may be suited to a unique business offering. Examples are service stations, cinemas, hotels, childcare centres, and pubs.

More often than not, these tenants want a location with limited competitors in the area. If this is on offer, companies will be willing to negotiate a higher lease.

Where to look?

In Perth, commercial properties are located in virtually every suburb. For retailers and specialised commercial properties, a location in a highly populated area, away from competitors is the ideal place to set up shop. See our list of commercial properties for sale in Perth.

For the bigger industrial facilities, there are restrictions ensuring they are grouped in designated industrial zones. For a breakdown of these locations, see this Guide for Industrial Real Estate.

When should you invest in commercial property?

With the WA borders now open, the commercial property market is a hotbed for investor activity. According to Domain, the vacancy rate for commercial sites is “historically lower compared to previous years”, meaning property investors are receiving a greater return from their tenants.

In other words, now is a great time to secure a commercial property for sale.

If you are looking to buy or sell a commercial property in Perth’s South_East Corridor, Ross Scarfone Real Estate are the professionals to call upon.

Our vast experience means we have the industry knowledge and excellent service to assist you in making a great return. See some of our commercial properties for sale, or get in touch for an appraisal of your current property.

Paul Scarfone – Top Commercial Leasing Agent WA Finalist

The Annual REA Excellence Awards (AREAs) have recently announced the state finalists for the 2021 edition of the Awards. Off the back of a very successful year of outstanding achievements, we would like to congratulate our very own Paul Scarfone, who has been nominated for the title of Top Commercial Leasing Agent WA.

This award recognises the best commercial leasing agents in each state by comparing REA data on campaign results throughout 2021. The announcement comes off the back of Paul’s big win at the REIWA Awards Ball in August last year. He was awarded Top Salesperson by Commercial Listings Sold for the 2021-21 financial year, in what was the events first ever inclusion of the Commercial Sales Awards.

Western Australia had a strong year in the property market as demand and prices grew following the downturn in 2020. Both local and interstate buyers have been in the market for prime commercial property across Perth and beyond, which has allowed Paul and the other agents at Ross Scarfone Real Estate to provide specialist insight and opportunities to buyers and sellers alike.

The skills and experience of the team in the commercial real estate sector provide a wealth of knowledge to the many current and existing clients of the company. The awards received, and the recent nomination are a testament to the hard-work and expertise of everyone involved at Ross Scarfone.

From everyone at Ross Scarfone Real Estate, we congratulate Paul and wish him the best of luck with receiving the award.

Commercial & Industrial Real Estate Experts

At Ross Scarfone Real Estate, we provide excellent service to our clients in a professional and ethical way. If you’re looking to buy, sell or lease a commercial or industrial property, get in touch with the team today with this Contact Form.

8 Tips to Increase Your Commercial Property Value

Making your commercial property in Perth more attractive to buyers is a great way to increase its value, benefitting both the buyer and you. Whether that be improving the exterior, adding amenities, or changing leasing companies, these are a few tips which could help you out.

  1. Increasing rentable square footage

A simple way to do this is determining the usability of the space both horizontally and vertically, and advertising this to your potential buyers. Check if there are any structural blockades preventing the use of productive space and make the removals or additions. Smart fit outs like walls and partitioning, line marking, and shelving and storage are just a few ways to do this. In the long term, spending the money on such changes will increase your commercial property value.

  1. Increasing parking space

Not only will adding spaces to park increase the accessibility of the property for customers, but it will also add value to the commercial property. Potential Perth buyers will see the benefit of such accessibility in helping their production and satisfying their customers, leaving you with the added value to your commercial property.

  1. Improving exterior

Upkeep is essential as the whole look and presentation of a building can either decrease or increase the value of a commercial property. Repairing any defects to the exterior, like plastering, or an easy and simple paint job is a means of taking up the property value a long way. Buyers will be more interested in a visually appealing and well kept Perth property, and so will their customers.

  1. Upgrading signage

Exterior signage of your commercial property is essential for both the presentation of the building and also marketing purposes. A visible, clean, maintained sign is vital for the buyer of your commercial property and is a great way to increase your commercial property value in Perth. The same as improving the exterior, it’s a way to keep buyers interested as they look to what will attract and be recognizable to their customers.

  1. Cleanliness

Providing a clean commercial property building and ground is the easiest and most simple way of increasing value. Giving a buyer a blank canvas is a great way for them to be able to imagine how they can use the space. Mopping, deep cleaning carpets, and getting the windows cleaned, are some of the ways you could present a ‘new’ space to a prospective buyer.

  1. Addition of amenities

If possible, adding amenities to your commercial property can undoubtedly increase the value. Conference rooms, a coffee bar, or office spaces allow buyers to envisage their business and its people working and operating in the space. By adding such amenities, your commercial property puts more on offer for the potential buyer, meaning more interest and value.

  1. Regular inspections

Perhaps a hassle, but it is essential to regularly inspect your commercial property when taken over by a business. This allows you to check up on your Perth property and to see whether you should make any changes, like the ones listed above, or fix any structural issues if necessary.

  1. Change lease companies

A new pair of eyes can greatly benefit your commercial property. With fresh advice from another industry professional, you may learn a new thing or two and heighten the value of your commercial Perth property. Ross Scarfone realtors can be the fresh face and perspective that you’re looking for to make your commercial property the most appealing.

With extensive experience and knowledge of real-estate in Perth’s Southeast region, Ross Scarfone Real Estate have been helping businesses for over 30 years. Leasing commercial real estate, including brand new, old, and converted warehouses, the team provides a personalized, professional service.

Is Now the Time to Sell Your Commercial Property?

Why Sell Your Commercial Property?

  • Demand for commercial property across Perth, from both local and interstate buyers, is strong, signalling Western Australia’s property market rebounds post-Covid.
  • We see the investors entering the field compounded by demand coming out of residential and putting their money across into commercial market to get that higher return.
  • Continued low interest rates, a strong vaccine roll-out, and strengthening economic recovery have translated into strong price growth in Perth city.

What Is Your Commercial Property Worth?

Unlike residential property, which is based largely on land value, commercial property valuers look primarily at market yields, rental returns, and a property’s possibility for strong capital growth to determine value.

The process to value commercial property can be quite complicated to do it yourself. Appraisers and real estate agents may use two or more approaches when calculating the value of commercial property including the cost approach, the income approach, the sales comparison, and capital asset pricing model.

Get a Comprehensive Appraisal Today

Get a commercial property valuation done by the local real estate experts. We have the best market knowledge to provide you with valuable information about your commercial property.

We know the local market and can provide a realistic sale value and suggest the best way to market and negotiate terms of sale of your commercial property to achieve the best possible price.

With well over 30 years’ experience in Perth’s South-eastern Corridor and having won the 2021 Commercial Sales Awards by REIWA, we have proven our ability to sell commercial property.

The Scarfone family has developed a reputation for providing great service and being the first to know local commercial property news and real understanding about what makes our neighbourhood the best commercial and industrial hubs.

We have the biggest range of commercial properties for sale in Belmont, Welshpool, Kewdale and Victoria Park and a wealth of experience selling commercial and industrial property such as warehouses, retail, office, and factory units. After a quick assessment, we can provide you with a realistic idea of your property’s potential.

The Best Outcome Guaranteed

Not sure how to go about selling your commercial property? We will negotiate the best possible outcome with the pool of commercial and industrial buyers.

In addition to negotiating the best price for you, we will guide your through the process of sale and project manage the transaction, which includes:  

  • Comprehensive advice on marketing and strategy to maximise your price
  • Arranging all promotional activities and bringing the property to market
  • Ongoing communication and buyer feedback
  • Preparation of Offer and Acceptance and related Sale documents
  • Liaison with your settlement agent and facilitate the completion of sale

We will also manage a promotional campaign on your behalf. This includes:

  • Online advertising with market leading portals, social media, and this website.
  • Regular mailouts to our extensive database
  • Offline advertising such as sign boarding
  • Photography and flyers
  • Professional Service from our award-winning sales team

Need Help Valuing a Commercial Property?

If you’ve invested in a commercial or industrial property for many years and wonder whether it is the right time to sell speak to our agents today.

We will help you to understand the value of your commercial property or portfolio of properties and guide you through the process of sale from A to Z.

We specialise in providing professional commercial property appraisals and advice for prospective owners and can help you identify factors that will lead to a successful and profitable sale.

Commercial Warehouse for Sale: Top Considerations

Buying an investment property such as a commercial warehouse can be a daunting prospect. Whether it is an old warehouse for sale, converted or brand new one, it involves a large outlay of money and comes with its own risks and rewards.

Investing in a commercial property for sale as opposed to residential property can be a little trickier and you must consider some other variables to ensure your money is well spent and you’re likely to see a return on investment.

In this article, we set out some of the key considerations concerning the purchase of a commercial warehouse.

Commercial Warehouse Space

Commercial warehouses are used primarily to store products, inventory, pallets and boxes, machinery, offices, and other elements that enable it to operate.

A warehouse which stores, packs and ships goods can also be considered a commercial warehouse space. If you however need to manufacture products to run your business, you might want to consider an industrial warehouse building to accommodate your equipment.

Warehouse Location

In general, it is a good idea to ensure your warehouse is located close to major transport links, arterial roads, highways, ports, and cargo docks.

Perth has 4 distinct industrial areas which all offer different benefits dependent on what you’re looking for and the profile of your business. Follow this guide to commercial real estate investment to find out more.

Occasionally, a small factory in non-industrial area might be a great bargain and you could possibly convert it into a commercial warehouse for sale if the need arises.

Access to The Warehouse

Easy access to the warehouse is of paramount importance. In general tenants want a warehouse they can work in, but they would not like to feel isolated far away from the city.

Make sure there is enough land for extra storage and sufficient parking available. Depending on planned operations, an external loading dock might be required.

Height of The Warehouse

The height of the warehouse known as the clear height plays an important role in determining storage space. Clear height can be defined as the height of a building from the floor to the bottom of the lowest hanging item on the ceiling.

These days, due to ongoing efforts to increase warehouse efficiency warehouses come with a clear height of 30 to 36 feet as against the earlier 12 to 24 feet norm. This may be especially important to for investors looking for a commercial warehouse for sale that can be efficiently utilized or has the potential to expand allowing to build extra storage room.

Security of The Warehouse

Another consideration worth looking at is the security of the warehouse because safe buildings will fetch a higher price than the ones that are not and will be more likely rented out.

It is therefore imperative to have ongoing surveillance and CCTV cameras to prevent unwanted theft or damages to supplies and products in a commercial warehouse.  Integrating building access control into security plan is ideal for permitting and restricting access to warehouse premises.

Office Space

As a rule, about 5% to 10% of the total square footage of the warehouse should be dedicated to an office room. Instead of building costly walls, you may want to install screens or partitions to create a dedicated office space.

These days warehouse workers appreciate a work environment that offers that industrial feel in a light and airy office or showroom. Converted warehouses for sale offer funky open plan spaces with high ceilings and exposed metal frames.

How to Find a Commercial Warehouse for Sale?

A good commercial warehouse real estate agent can help you make a more informed decision. Your agent should have an in-depth understanding of selling, renting, leasing, or buying a commercial property including old and converted warehouse space from start to finish, so they can advise you on that process.

Ross Scarfone Real Estate has extensive experience and knowledge of the property market in the Southeast Perth region. They have been helping businesses thrive for over 30 years by leasing commercial real estate, including brand new, old and converted warehouses, in an ethical and professional manner.

Paul Scarfone wins Top Salesperson by Commercial Listings Sold At REIWA

On behalf of everyone at Ross Scarfone Real Estate, we would like to congratulate Paul on his win at the annual REIWA awards and outstanding achievements during the 2020-21 financial year.

The 2021 reiwa.com Awards recognised the top selling agents and agencies in WA at the Awards Ball on Saturday 28 August at Crown Perth. For the first time ever, the 2021 reiwa.com Awards included the Commercial Sales Awards.

“Commercial real estate is a very important component of the WA real estate market, and we are delighted to be able to acknowledge the best and brightest in this sector of our industry,” REIWA CEO Neville Pozzi said.

Demand for commercial property across Perth, from both local and interstate buyers, is strong, signalling Western Australia’s property market rebounds post-Covid.

“It has been a remarkable year for the WA property market, which hit bottom in July 2020 before quickly shifting into a strong recovery phase. After a long and sustained downturn, it’s wonderful to be able to celebrate the achievements of WA real estate’s top performers at a time when the market is performing well’ – Mr Pozzi said.

For specialist insight into the commercial real estate market, opportunities, or specific advice, call or email Ross Scarfone Real Estate.

Is There Stamp Duty When Buying a Commercial Property?

Stamp duty, or transfer duty as it is now known as in Western Australia, is a government tax that is payable on most property transactions.

When purchasing commercial or industrial property in WA, it’s important to understand what stamp duty is, what rate of duty will apply to a given transaction, and what it means for your circumstance.

What is Commercial Property?

A commercial property is simply a property which you intend to use for business purposes. Unlike residential, this is a broad category and includes everything from offices, warehouses and stores, as far as a residential dwelling that is used for commercial gain.

Industrial property is defined as a property that is used for the actual manufacturing of something, and can be considered either a factory or plant. In Western Australia, all commercial and industrial property transactions incur stamp duty tax, unless granted an exemption for unique circumstance.

What is Stamp Duty on Commercial Property?

Stamp duty is payable on most commercial property purchases when you buy land or property or have the ownership of land or property transferred to you.

In WA specifically, stamp duty is calculated on the market value of the property being purchased, rather than the purchase price. The amount you pay is calculated on a sliding scale, generally from 1% to 6% of the purchase price, although it can be higher, meaning the more expensive the asset is, the higher the transfer duty rate is that you will be required to pay.

Transfer duty extends past the commercial property and into certain business assets, but let’s start by looking at how stamp duty is defined, how it’s calculated, and any exemptions that might apply. 

Is Stamp Duty Always Payable When Buying a Commercial Property?

Whenever you purchase or acquire an interest in commercial property, you will be liable to pay stamp duty. There may also be a requirement to pay duty in other circumstances, such as if you lease a property, or even receive it through a trust or as a gift.

How Much is Stamp Duty on Commercial Property?

There are factors that should be considered when determining how much stamp duty you will need to pay. These include:

  • The ‘dutiable’ value or the price you paid or market value, whichever is higher
  • The intended use of the property
  • If you are a foreign purchaser
  • If the property is also your principal place of residence
  • Any exemptions or concessions you may be eligible for

General Rate of Stamp Duty

The general rate of transfer or stamp duty applies to commercial property, rural property that is used in isolation, and vacant land which doesn’t qualify for the residential rate. The general rate of duty is as follows:

  • <  $80,000 = $1.90 per $100 or part thereof
  • $80,001 – $100,000 = $1,520 + $2.85 per $100 or part thereof above $80,000
  • $100,001 – $250,000 = $2,090 + $3.80 per $100 or part thereof above $100,000
  • $250,001 – $500,000 = $7,790 = $4.75 per $100 or part thereof above $250,000
  • > $500,001 = $19,665 + $5.15 per $100 or part thereof above $500,000

More information on these rates is available on the WA government information and services website.

What are the Stamp Duty Exemptions for Commercial Property?

There are several circumstances where paying stamp duty may be avoided but they are typically considered as less-common circumstances.

Of the possible exemptions, spousal and family farm transactions can qualify for exemptions, however, both relate to the buying and selling parties being married or directly related. Charitable transactions can have stamp duty exemption, provided the transaction entered is or are for charitable or similar public purposes. One other reason for exemption is when the transaction involves purchasing from a state body, in this case, the State of Western Australia.

A concessional rate of duty is available for certain purchases of a business undertaking if the value of the dutiable property does not exceed $200,000. For more information on stamp duty rates and available concessions for commercial property, visit the Western Australian government information and services website, and the Duties Fact Sheets for Business Acquisitions and Residential Property.

Concessional Rate of Transfer Duty

A transaction may be assessed at the concessional rate of duty where:

  • the dutiable property is business property
  • the dutiable value of the dutiable property does not exceed $200,000 and
  • the purchaser is an eligible purchaser, being a person who is not a government body and who intends to carry on the business for an indefinite period.

The concessional rate of duty is as follows:

  • < $100,000 = $1.50 per $100 or part thereof
  • $100,001 – $200,000 = $1,500 + $4.39 per $100 or part thereof above $100,000

Calculating Stamp Duty for Commercial Property

The Western Australian government information and services website has a calculating tool which you can use to check how much stamp duty you will have to pay with commercial and industrial property purchases fall under the general rate type.

If you are purchasing more than one commercial property, the properties would be combined into one collective and for stamp duty to be calculated accurately, you will need the execution date and the total purchase price and value of the property.

As a privately owned West Australian company that specialises in the South-eastern corridor of Perth, Ross Scarfone Real Estate can assist you with all aspects of commercial and industrial sales, leasing, property management, valuations, investment, and development.

For specialist insight into the commercial real estate market, opportunities, or specific advice on indicative transfer duties, call or email Ross Scarfone Real Estate.

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