Lease or Buy? The Big Commercial Real Estate Question

Thinking about investing in Sydney commercial property? Need to rent an office space, cafe or retail store for your growing business? Commercial real estate in Sydney is a viable place to begin if you want to diversify your portfolio, or simply need a reliable commercial property to kick-start your business.

But why is Sydney a great city to invest in? Whether you want to lease or buy commercial real estate in Sydney, here are 5 reasons why it's a good idea:

1. Sydney is Australia's largest city, with a population of 4.2 million people and growing. With the NSW Government predicting the population to increase to 6 million in the next thirty years, employment rates are also bound to grow. Whether it's in the retail or business sector investing in commercial real estate in Sydney is a sound choice given these statistics.

2. With its laidback lifestyle, diverse work opportunities, environment and vibrant culture, no wonder Sydney is voted as one of the best cities to live in year after year. Buying or leasing commercial real estate in Sydney will no doubt see solid returns as this lively city continues to attract workers from around the globe.

3. The City of Sydney Council reports that Sydney alone accounts for more than 25% of the entire economic activity in Australia. From stores, office spaces, cafes or restaurants, expect solid returns from commercial real estate in Sydney.

4. Almost half (47.1%) of the city's workforce in the CBD are employed in the financial or business sector. And out of the country's top 100 companies, 60 are located in Sydney, with more than 500 global corporations in the Asia Pacific region based in Sydney. Based on these figures, you can be sure that diversifying your portfolio through commercial real estate in Sydney is a secure investment.

5. Renting commercial real estate in Sydney, particularly office space, costs less than half the price in London, one-quarter of that in Tokyo and substantially less than major cities like Dublin, Paris and Hong Kong.

Is it easier to buy or lease an office in Sydney?

There is no simple answer to this because it depends on the location, price, business and the type of commercial real estate in Sydney. Generally, more established businesses would purchase commercial real estate in Sydney, while those that are just starting out will lease an office.

Commercial real estate in Sydney is a great investment because:

• There are consistent returns. The minimum office leasing term is at least 3 years, which is substantially higher than the residential property market. What's more, if a company finds your commercial real estate in Sydney perfectly suited to their business, contracts can last from 10 to 20 years or more. In fact, according to Tim Green Commercial, Sydney's total office vacancy is only 5.4%, while Premium to D grade Sydney CBD office vacancies are still less than 7%.

• You can diversify your portfolio. Unlike the share market, which is volatile and fluctuates quite drastically, commercial real estate in Sydney offers a secure way to diversify your financial portfolio. And with expert property managers available from reputable agencies like Tim Green Commercial, you can be sure your commercial real estate in Sydney is well maintained, and its market value optimised when leasing or selling.
But if you'd rather rent than buy commercial real estate in Sydney, here are few reasons why it could be a great idea for your situation:

• Less commitment. While some leasing contracts are at least 10 years, renting an office space can also involve a short-term commitment of 3 to 5 years, which is perfect if you are starting out in business.

• Less responsibility. If you're leasing, all you need to think about is growing your business and paying rent on time. However, purchasing commercial real estate in Sydney means that building maintenance, legal issues, collecting rent and strata fees is entirely your responsibility.

• Affordable. With the economic downturn, prices for commercial real estate in Sydney have dropped. Renting has never been more affordable, so use your higher bargaining power to secure a great Sydney office for the next few years.

Where can I find commercial offices?
Find commercial real estate in Sydney with Tim Green Commercial, Sydney's premier commercial property agency. Buy, lease or simply browse through hundreds of properties at your own time. For more information or expert advice on commercial real estate in Sydney, visit Tim Green Commercial at www.tgc.com.au