Commercial property investors reaping rewards

By Reporter 12 November 2015 | 1 minute read

Investors are cashing in on the increasing demand for commercial real estate, with vendors selling their properties well over reserve.

Commercial property investment

Raine & Horne executive chairman Angus Raine said commercial assets priced between $1 million and $3 million are increasingly popular with yield-hungry, self-managed super fund trustees, which is paying off for vendors.

“Low cash rates are also helping the smart money find its way into commercial real estate, which is producing some good sales results for vendors,” he said.

The real estate group cited a recent sale in Sydney’s North AshfieldAshfield, NSW Ashfield, WA, which sold for 29 per cent above the vendor’s reserve figure – ultimately going for $1,525,000 at auction.

In addition, a retail building in Marrickville sold under the hammer for $2,305,000 – $355,000 above the vendor’s initial reserve.

Raine & Horne principals across Melbourne and Brisbane also experienced positive results and said "DIY super funds” were cashing in on the boom.

Jason Beveridge, principal of Raine & Horne Commercial Victoria, said 2015 has been a consistent year for industrial property markets.

“It’s been a stock standard year for the sub-$1 million markets, and we expect a reasonable amount of activity for industrial assets in the run-up to Christmas,” he said.

“We’ve seen some tenants upgrading to owner-occupiers, which makes a lot of sense in the current low interest rate environment.”

Read more: 

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How much are celebrities' homes going for?

Developer jailed after investors lose life savings 

Market to slow for 'prolonged period' 

Securing a property at auction 


Commercial Property

- duplicate, see Commercial Real Estate

Commercial real estate

Commercial real estate or commercial property refers to buildings or land used for business activities and workspaces to generate income.


A self-managed super fund is a private super fund that provides benefits to its members upon retirement, directly managed by an individual for their benefit and in compliance with super and tax laws.

Commercial property investors reaping rewards
Commercial property investment
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