W H AT TO LO O K F O R WHEN INVESTING IN COMMERCIAL PROPERTY In 2021 we have seen a large increase in commercial sales transactions after a quiet 2020. Last year we saw both vendors and buyers adopt a “wait and see” attitude and were more cautious in coming to market and transacting in an uncertain economy. This year we have seen transaction levels soar as interest rates maintained their low rate with a combination of growing confidence and buyers' quest for increased returns. As a result we have witnessed a greater volume of first time buyers in the marketplace as well as experienced investors moving up the risk curve. Turnover levels have seen improvement across all asset classes notably industrial assets which have been best poised to weather the COVID-19 storm as well as alternative assets such as childcare, service stations and medical facilities. More traditional assets like retail and office continue to be in hot pursuit by savvy buyers however there are a number of fundamentals you need to watch for when purchasing your next commercial asset.
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