There are many potential benefits of owning your own commercial property. From a personal perspective, it can be an effective way to build wealth with the potential for the property to rise in value.
From a business perspective, it gives you certainty and control. With no more landlord to deal with, there’s also no more worrying about potential rent rises, or whether your lease will be renewed.
According to ANZ’s Director of Sector Strategies Richard Hinchliffe, there’s another benefit to owning your own premises which can be even more important in the long term.
“In our experience it can open up new strategic options, such as ways to expand your business or enable better customer service,” says Hinchliffe. “For example, one of our customers who supplies recycled parts to a range of customers were looking to expand. But to do so they needed a large industrial site, which can be hard to find in this sector.
“To enable their expansion plans we helped them fund the purchaseof a large second site which meant they could hold a much wider range of products and serve a significant number of new customers. It also gave them the ability to manage more throughput, and effectively doubled the size of their business.”
Hedging your bets, for example buying a commercial property to supplement existing leased premises, can also be a good option. “We helped fund another customer into a second site across the city from their rented premises,” says Hinchliffe. “That not only allowed them to service a wider geographical area and grow their business, it also meant they were able to reduce travel times and stock movements.
“A spin-off benefit was that many staff were able to reduce their daily commuting time. And with two locations they have a wider pool of potential staff, which makes it easier for the business to attract and retain high quality people.”