Hi guys! Ryan here from onproperty.com.au, your daily dose of property education and inspiration. And today, we’re going to be talking about commercial real estate and investing in commercial real estate. I’m lucky enough to have with me Simon here, who’s the CEO of commercialpropertyguide.com.au. Which is a website that lists commercial property for both sale and for lease and also helps people really understand how commercial properties work.
Ryan: So I’m excited to have you today, Simon. Thanks for coming on.
Simon: Thanks for having me, Ryan.
Ryan: As I was discussing with you, Simon, earlier. You know, I’m a bit of a novice in the commercial space. I know a fair bit about the residential industry in terms of investing in residential property but in terms of commercial, I haven’t really gone down that rabbit hole. So I’m excited to really get down to basics today and to talk about the differences between commercial and residential property.
Simon: The advantages of commercial property, generally, is the tenants are generally responsible for all the outgoings, like the insurances and rates. The tenants will more than likely to make improvements to that space and increase the value of the property. And leases are obviously generally longer with an increase of rental every year. And the main consideration is the quality of the tenant. That’s what we sort of look at is, how long is the lease? Is the business stable to receive a good tenant for that particular property?
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