A local real estate agent believes investors considering spending money on commercial property should be looking at Bendigo.
DCK managing director Robert Ketterer said Bendigo is a very attractive alternative for investors.
“In more recent times we are seeing people from Melbourne and southern areas look at Bendigo as an alternative because it offers a good return,” he said.
“You have to spend a lot more money in Melbourne and the returns are a lot lower.
“North of Bendigo, a lot of people see Bendigo as strong regional centre and are happy to invest.
“Commercial property is different market. You buy a house with your heart, it’s an emotional transaction, but a commercial investor runs the numbers and looks at opportunity and makes a commercial decision.”
Mr Ketterer said the number of commercial buildings for sale in central Bendigo wasn’t overly high.
“There's never a lot of commercial property for sale in Bendigo,” he said. “The general turnover rate is quite strong, most property that comes to market sells promptly as long as it is securely leased.
“The main buyers are people looking for investments, a lot are buying with self managed super funds, so they want the security of a long-term lease.”
Commercial properties that have been on the market for longer are generally vacant or have short-term leaseholders, Mr Ketterer said.
The Bendigo CBD also has a number of shopfronts that are available for lease.
Mr Ketterer said if you didn’t include Hargreaves Mall, the vacancy rate was not substantial.
“The retail market is a tough market,” he said. “At the moment not a lot of people are looking to open new businesses or outlets.
“In Hargreaves Mall, I think it would be great to see a variety of retailers. Some additional hospitality, particularly that would be open in the evenings would be good.
“(Hargreaves Mall) is a pretty spot at night with the lights and music. It is ideal for alfresco dining and a relaxed atmosphere away from a busy road.”
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