This could be an untapped commercial goldmine

Chances are that you’ve heard news of Amazon coming to Australia and people claiming it’s “end days” for Australian retail.

Manufacturing in Australia is also looking pretty shabby for the most part… the big car plants have all been outsourced to Asia…

And of course china is flooding the market with products so cheap that no one here could ever compete…

So where do we look for safe places to buy commercial in industries that are on an upswing, not a downswing?

Well, a recent article on real commercial got me thinking… Hear me out:

There are two sides to this thinking…

The first is that we have an ageing population… the boomers are slowly getting older and with that comes health problems…

That means medical practices will do well… in fact, anything health related – including wellness type industries…

I’m sure if you’ve looked around you will have noticed how many gyms, fitness centres and beauty related practices there are…

I mean Byron and the Gold Coast have become a bit of a millionaires playground in the last few years…

…so it’s no surprise that there are a lot of well-off people wanting botox and rock-hard-beach-buns.

The health and wellbeing are a multi-billion dollar industry in Australia alone.

The second side to this is that education is a massive ‘export’ for Australia… there are a huge number of students that come here to educate themselves.

Many of those students find ways to stay here… and there are a huge number of those students that come here to learn medicine, pharmacy, biology etc…

Comparatively the number of overseas students that come here to learn fine art history or sociology is quite small.

There is a side effect to this… Australia is a surprisingly large producer of medical products…

Millions of people around the world have benefited from Australian inventions such as Cochlear implants, Gardasil and spray-on skin.

“The impact on the property market of strong growth in our medical industry will not be like education, where residential apartments were a clear beneficiary. It will, however, be good news for industrial and office markets.

Existing precincts in Sydney and Melbourne are already home to large pharmaceutical firms and there is no reason why other cities, and even regional areas, couldn’t benefit.

Locating close to universities with medical research arms, or large hospitals, would also make sense. Australia is well known for relying on its resources for economic growth, but increasingly our people will play a greater role.”

Nerida Conisbee is chief economist at REA Group.

From an investors point of view, this could mean that researching companies in these fields and finding out what they need for expanding their company could be a great strategy for sourcing the right property…

It’s not dissimilar to asking Aldi where they want to relocate to next… find the right property or build the right property and you can land yourself a long term, very stable tenant.

Or… if you are looking at smaller deals… repurposing old houses, or building a purpose built medical centre within close reach of large hospitals could also land you with long-term, solid tenants.

The landscape of commercial is changing – as is real estate in general… but there are plenty of opportunities out there if you look around.

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