Step-By-Step Guide To Designing Your Commercial Property Strategy

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1. Defining Scope of Desire

•    Identify the asset class you want to invest in (e.g., retail, office space, industrial, hospitality).
•    Focus on what makes sense to you and what aligns with your interests and background.

2. Importance of Leaving Numbers Out Initially

•    Concentrate on the type of asset and its potential rather than getting fixated on the budget or available funds.

3. Choosing Asset Classes

•    Consider where you want to spend your time and the contribution you want to make to a particular space.
•    Understand the importance of having a meaningful “why” behind your choice to stay motivated through challenges.

4. Deciding on Location

•    Determine whether you want to invest in metro, large regional, smaller regional, or rural areas.
•    Be aware of the differences in dynamics and strategies between metro and regional areas.

5. Selecting Strategies

•    Explore various strategies like filling vacancies, strata, small subdivisions, commercial renovations, and signage.
•    Be confident in your ability to execute these strategies and understand their time frames and requirements.

6. Setting Return Goals

•    Define the percentage return you aim to achieve (e.g., at least 10% or higher for certain asset classes like storage).
•    Understand that you will likely need to create this return through value-adding strategies.

7. Flipping Commercial Property

•    Recognise the potential for flipping commercial properties to pay down debt or achieve a significant return (e.g., 30% minimum).

8. Narrowing Focus and Clarity

•    Use the scope of desire to narrow your search and be specific about your criteria.
•    Communicate your criteria clearly to agents and other stakeholders to get relevant opportunities presented to you.

9. Setting Goals and Deadlines

•    Establish specific goals, such as the date by which you want to leave your job and have your commercial property income supporting your lifestyle.
•    Use these goals as motivation and a clear target to work towards.

10. Identifying What You Don’t Want

•     List out what you don’t want (e.g., negatively geared properties, time-consuming investments) to clarify and refine what you do want.
•     Convert the list of what you don’t want into a concise and actionable list of positive criteria.

11. Involving Family and Support

•     Engage family members in the process for support and motivation.
•     Use their input to further refine and validate your scope of desire.