Commercial property investors are reaping excellent rewards from their purchases in the greater Ballarat region.

These high-yielding properties present a golden opportunity for those seeking lucrative returns, according to Buxton Ballarat director Mark Nunn.

“Commercial properties are now generating substantial 7-8 per cent returns, compared with the 5-6 per cent previously gained,” he said.

Apart from the significant gains, buyers were also drawn to longer lease terms and guaranteed rent rises, according to Mr Nunn.

“Lease terms could extend from three to five to 10 years or more,” he said.

“And rents have an expected increase of about 3 per cent per year.”

Also, the commercial property tenant paid for all the outgoings, compared to residential landlords who bore these costs, he added.

The greater Ballarat region has a myriad of commercial property types, including office spaces, retail outlets, industrial sheds, warehouses and high-profile sites.

A rare offering is the iconic sports and recreation complex on 2.57ha of prime industrial-zoned land at 8-40 Grant Street, Sebastopol, currently occupied by Tennis Ballarat.

This unique investment and development opportunity with endless possibilities, could suit those seeking a warehouse, storage facility or a car dealership, Mr Nunn said.

“Those involved in manufacturing and trucking industries would also find this property ideal,” he said.

“We have had strong interest from investors and owner-occupiers, and are expecting it to sell for around $7 million.”

Properties in the Ballarat CBD and along Howitt Street in the outer northern suburbs of Ballarat are sought after.

“Howitt Street, in particular, is a bustling commercial hub with diverse food and retail outlets, and medical practices,” Mr Nunn said.

He pointed to the prime commercial space at 3/1247 Howitt Street, Wendouree, that generated five buyer-leads, and sold for $250,000. 

“The buyer was attracted to its vibrant location,” Mr Nunn said.

“It also offered a secure and professional environment for their new business, which is a dance studio.”

In Mitchell Park, a 200sq m shed at 6/30 Waringa Drive, sold for $455,000 to buyers who will use it for their construction business shed.

“This is a versatile commercial, retail and storage facility, in a secure and gated complex,” Mr Nunn said.

The property’s desirable location near Ballarat Airport and major businesses including BMW, Prime TV, Toll transport and Bunnings distribution centre attracted good interest.

Located 110km from Melbourne, Ballarat is a business hub that includes major industries such as McCain Foods, Mars and IBM.

It is in a key strategic position with highway links to the airports, ports, and the industrial and agricultural centres of Melbourne, Adelaide, Geelong, Portland, Bendigo, Mildura, the Mallee and Wimmera. 

Mr Nunn is optimistic about the commercial property market in the greater Ballarat region, which continues to develop.

“Demand from local, Melbourne and interstate buyers is driving this vibrant market,” he said.

Buxton Ballarat’s commercial property department has a reputation of maintaining productive relationships with tenants and vendors.

It has a strong track record of achieving excellent financial outcomes for clients, including investors and owner-occupiers looking for a strategic and hands-on approach to managing their assets.