The economic impacts of the global COVID-19 pandemic have been well-documented, with many businesses and entire industries forced to reduce or suspend their operations entirely. With some restrictions gradually lifting across Australia, there is hope that business will be able to return to some semblance of normality sooner rather than later.
But there is still a long road ahead.
Many companies are still steering clear of renting or purchasing commercial spaces until there is more certainty. However, now is the perfect time to buy or rent for a range of reasons – and it could actually benefit your organisation longterm.
Government incentives improve accessibility to commercial properties
A number of new incentives and codes have been introduced now that COVID-19 has made its mark on the economy. The Australian Government has introduced support systems and regulations to help tenants and landlords, such as deferring rental or mortgage repayments, lessen the burden of the current circumstance.
But it’s important to note that these incentives and codes only apply to existing leases. For example, you cannot start a new lease on a premise now and then ask the landlord to renegotiate and defer rent.
However, thanks to new stimulus packages and asset write-offs, you can set up a business-related premise with less financial strain or burden. This means you can utilise your funding for fitout needs, add in furniture or to back your site with the technology required to kickstart your company.
Find out more about the asset write-off guidelines here at the ATO’s website.
Less competition brings more advantages
Ordinarily, it can be difficult to secure commercial properties in prime locations and with all of the space and requirements that your operations need. That is because there is usually no shortage of other companies seeking the same or similar requirements, making it a highly competitive market.
COVID-19 means competition is minimal in the real estate sector, giving rise to a buyer’s market. This trend presents huge opportunities to secure prime spaces across commercial offices and warehouses, for example.
Time to downsize?
Even with government measures in place to ease the economic impacts of COVID-19, there are many companies whose operations have taken hits significant enough to require a downsize in operations.
With plenty of commercial real estate options on the market, you can easily locate a smaller property to reduce overheads and keep your business stable. If you’re not sure what kind of space would best suit your needs, we recommend getting in touch with the Facey team for transparent guidance.
Taking a financial hit now can pay dividends in the future
It is unlikely we are going to see regulations that are any more restrictive than we have already seen so far. This means companies can secure prime commercial properties at attractive rates, as landlords and owners are motivated.
By securing these spaces now, you can position your business to succeed in the post-COVID-19 economy. With a premise in a location that is highly desirable, this will enable your business to grow.
If you’re looking to make an investment, with current events, real estate has proven to be a lower risk investment strategy and remains one of the most stable asset lines, much less volatile than the stock market that has been experiencing wild fluctuations and downturns.
We are taking the COVID-19 situation very seriously and we have moved to a remote working model to assure the safety of our staff and valued customers. However, we are still here to help you find the perfect space across rental and sales opportunities. We encourage you to get in touch with our team to find out more about our current services.
Other helpful resources: