Warehouses are trending in real estate investment at the moment. And it’s a trend that’s likely to stick around for the long term. Why are savvy investors attracted to warehouses? There are a number of solid reasons.
First of all, warehouses and industrial units are relatively affordable – especially in comparison with residential properties and more upmarket commercial properties. A small sized strata warehouse facility can often be snapped up at a friendly price, and with opportunities to buy off-the-plan, the financial outlay for investors can be reduced even further.
Secondly, the potential for capital gains is very real. Both small and large scale investors are drawn to the industrial property sector because of its recent track record of outperforming other types of commercial property in terms of capital value growth. This is especially true in Sydney and Melbourne.
Yields are another deciding factor for many investors when it comes to warehouses. Investors in industrial property can expect yields of 4 per cent and above in the Sydney and Melbourne markets, with Brisbane not far behind.
A warehouse in a strategic location – in the inner city or close to key transport links, for example – will always be in demand. Ecommerce and online retailers are hungry for these types of facilities for storage and easy shipping of stock.
Let’s not overlook the added advantage of lower tenant turnover for warehouses, compared with residential property. This can make building management much simpler for the investor.
Managing a warehouse investment property is fundamental for tapping into the rewards of capital gains and strong yields. A top quality facility management software, such as the MYBOS system, is especially suited to warehouse facility management. With its easy to use apps, integrated modules and timely reminders, MYBOS allows you to keep all of your information on one secure building management system.
The time for investing in a warehouse facility has never been riper and managing your asset has never been simpler, thanks to MYBOS.
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