Develop Commercial Property
The land development and subdivision market in Australia holds a substantial value of $13 billion, as revealed by research conducted by IbisWorld. At Financebetter, we bring regular commercial property opportunities to the market for both owner-occupiers and investors.
Recent Successes in Adelaide's Promising Market
Recently, we facilitated the successful sale of multiple properties in Adelaide with significant development potential. Examples include properties located at 22 King William Street, Kent Town, and 227 Magill Road, Maylands, which presented opportunities for renovation or redevelopment.
These types of opportunities often attract individuals or entities who are new to property development, such as owner-occupiers or self-managed super funds. For those entering the commercial property development sector, it is essential to assemble the right team of professionals. This includes engaging planning consultants and architects with expertise across various disciplines, including design, planning, engineering, and construction.
As a novice developer, it is crucial to be prepared for the extensive requirements set by local councils. For instance, if a property is zoned for commercial use but has been used for residential purposes, the new owner will need to seek approval from the local council to change the land use classification from residential to commercial. This process may involve satisfying criteria such as providing sufficient parking spaces and disabled access to gain council approval. It is important to note that planning and land use regulations can vary between states, as each state has its own department of planning.
Compliance and Complexities in Development
Even if the decision is made to demolish an existing property, the developer must comply with council regulations. This includes obtaining a development application and fulfilling other related obligations. If assistance is required for converting an existing residential building or undertaking land redevelopment, an experienced planning consultant can prove invaluable, particularly for complex projects. They can help navigate challenges such as meeting specific parking requirements or addressing operational considerations imposed by the council.
Likewise, if a developer intends to construct a new property, an architect in consultation with a planning advisor can provide guidance on what is feasible. The primary objective in the development process is to maximize the net lettable area, whether it is an office or warehouse space. This consideration applies whether the property will be used by the developer or leased to other businesses.
For example, if the council imposes a height limitation of six meters for a warehouse, a consultant's expertise can potentially push for an extension to seven or eight meters. In the case of a 500-square-meter area, this difference could translate into space for an additional 500 pallets.
Converting residential space to commercial usage may involve tax implications, even if the area is appropriately zoned. It is important to be aware of such considerations. For instance, in South Australia, the purchase of a commercial property does not incur stamp duty. Thus, it is advisable to explore modifying the land-use code with the consent of the current owner before finalizing the purchase. A planning consultant can assist in navigating this approval process, potentially resulting in significant cost savings.
Discover the Possibilities
For further information on buying and developing commercial properties, we invite you to contact Financebetter today. Our team of experts is ready to provide valuable insights and assistance, empowering you to make informed decisions and achieve success in the dynamic commercial property market.