In December 2018 we started the commercial side of MM, two years on and we have just welcomed Amy Kenyon to help us with our growing portfolio. It’s been an exciting two years of establishing ourselves and engaging new clients; learning a lot along the way.
We caught up with Jeremy and Amy to ask them some questions about the industry and what to expect in the future.
How long has there been a Commercial/Industrial department within MM? 2 years.
What is the most satisfying aspect of your job? Forging new relationships with clients, from tenants, to landlords, vendors and purchasers.
How has commercial real estate been affected during Covid? Both commercial and retail space has been severely affected, primarily because businesses were not able to operate. Hopefully we'll see those businesses bounce back now that the restrictions have lifted.
Industrial space hasn't missed a beat, whilst it was a little quiet during the lockdown, most of these types of businesses, including tradies are as busy as ever.
Is there any particular advice you would offer someone looking to invest in commercial property? Do your research. Commercial & Industrial properties are quite different to residential property; in price, return and how the leases work.
How do you think the new hotel developments will impact local business in Bendigo? Firstly, we're hopeful that these projects will be approved by council and then be built. But if they do, then it can only have a positive effect on local business by bringing more people to Bendigo for things like work conferences or tourism. Seeing that the government is spending money on capital infrastructure, which will hopefully be followed by private capital can only be seen as a great positive for the city.
Is investing in commercial property the same as investing in residential? Yes and no, but the differences can be quite stark. A greater portion of the population invest in residential property, however many investors use commercial/industrial property investment as a way to diversify their portfolio.
Are there any areas to watch out for in Bendigo regarding industrial growth? The East Bendigo industrial precinct seems to be very popular given its proximity to the city, the airport and major roads out of the city. With industrial land quite scarce, the demand seems to outstrip supply at the moment.
What is a common misconception regarding real estate? That the price always goes up (although the last 20 years it seems like it isn't a misconception).
Is advertising your commercial listing on different platforms really that important? Yes, we think so. The old saying is 'you can't sell a secret', so the more people who see the listing, the more chance you have of achieving a positive result.
Do you need a particular qualification to be a commercial agent? Yes you need to have completed the REIV Agents Representative Course.
What are the challenges that arise when working within commercial real estate? Every property and transaction is different, so you can't assume anything.