How To Break Into South Australia’s Hot Commercial Property Market
South Australia’s commercial property market is thriving, which is great for the local economy. But it is making things tricky for would-be commercial property investors who want a piece of the action.
COVID, of course, has had an impact. We’ve seen a huge increase in interest for industrial, logistics and convenience retail properties.
But it’s much more than that. A stable and growing economy, cheap cost of living and general resilience has seen Adelaide become the place to be.
Whether you’re looking to invest, or an existing property owner looking to upgrade, or even a tenant looking to step up and buy, the biggest challenge is finding the right property.
Because there is such high demand, quality properties are getting snapped up before you can even pick up the phone and call the agent.
So how can you beat the crowd and nab the right commercial property in Adelaide?
Here’s five key tips.
1 - Build Relationships in the Field
If you’re waiting for properties to hit online listings, as you may have already noticed, this usually means you’re already too late.
Get ahead of the pack by building relationships in the property industry, or tap into the existing networks of property professionals.
One of the smartest things you can do is work with an experienced buyer’s agent. A good buyer’s agent will know the market better than anyone, and have the key property networks, to identify the right property opportunities for you before they hit the open market. They will also manage the negotiations and buying process for you, giving you access to their insights about pricing and other strategies.
You will also want to build relationships with commercial property agents who can give you the heads up about property opportunities before they come onto the market.
2 - Negotiation
Negotiation isn’t just about offering more money than your competitor.
The key is to figure out a seller’s needs and wants and play into them. On top of a good offer, are you able to offer a quick settlement? Alternatively, can you manage a longer settlement and give the current owner more time to move on? Time is often referred to as money, and can be a negotiation chip as much as gold itself. And there are other key negotiation levers, too. Again, a good buyer’s agent can help you find the right strings to pull.
3 - Be Financially Prepared
Cold hard cash will get you through doors that would otherwise be locked and barred. If you’ve got provision for a healthy deposit and/or the ability to enter a cash unconditional Contract, your offer goes to the top of the list.
But if that isn’t an option, all hope is not lost - just make sure your finances are in order and ready to go at the drop of a hat; pre-approval and having the finance locked and loaded with your bank could be a key differentiator, especially given there’s a property finance backlog with the banks that is slowing down the process at the moment.
4 - Don’t Wait
In times like these, there’s often a temptation to sit and wait for things to cool off. But that isn’t happening any time soon in Adelaide. The longer you wait, the more expensive, and tricky, your situation could become. Not only does it make it harder to get into the market, but you’re also losing the benefit of the increase in value that your property would likely be getting over that wait time. Despite the challenges, you need to remain proactive.
5 - Get Advice
The best thing to do is get professional advice and support.
Firstly, you need to get a really good strategy. Are you even going for the right property? Is commercial property development a better idea? Find out the right solution for your property investment goals.
Secondly, an expert advisor will act on your behalf as a buyer’s agent to identify the right opportunities, help you make data driven decisions and negotiate the best deal.
We can help
At Broadway Property, we support you every step of the way through your commercial property development process.
Contact us to discuss your needs. No obligations.
Managing Director, Broadway Property
Director, Broadway Property