STRE

A note on Commercial acquisitions for private investors in Victoria…

Over 12+ years buying commercial property across Victoria, the most consistent pattern I’ve observed isn’t tied to market cycles or asset class — it’s process.

Investors who transact directly tend to encounter the same structural disadvantages:

Lease covenants are reviewed at a surface level, with limited attention to make-good, option structures, and outgoings recovery. Building condition and capex forecasting is often deferred to post-contract.
Negotiation occurs against a selling agent whose obligation is to the vendor.

The role of a Buyers representative on your side is to correct that information asymmetry.

At STRE Commercial , the process is sequenced deliberately. Strategy is defined before sourcing.

Asset profile, target yield, location, hold period, and exit. Sourcing runs across on-market, off-market, and pre-market channels.

Due diligence is optimal, lease analysis, comparable sales, zoning, building condition, market rent. Negotiation is anchored to evidence, not sentiment.

The objective isn’t to transact. It’s to build a portfolio that performs across cycles.

For investors considering acquisitions in the $2-20M range across Victoria, this is the framework we apply.

www.stre.com.au/invest

7 Steps to Secure a Commercial Property in Your SMSF

1. Initial Consultation
Begin with a comprehensive consultation with our experts to discuss your investment goals, budget, and preferences. We’ll help you understand how commercial property can enhance your SMSF portfolio.

2. Financial Health Check
Collaborate with your financial advisor to assess your SMSF’s financial status and borrowing capacity. Ensuring your fund meets regulatory requirements is essential for a successful purchase.

3. Property Search & Selection
Leveraging our extensive market knowledge and network, we’ll identify commercial properties that match your criteria. We focus on properties with strong rental yields and growth potential to maximize your investment.

4. Due Diligence
We conduct rigorous due diligence on shortlisted properties, including market analysis, tenant evaluations, and property inspections, to ensure you make an informed investment decision.

5. Negotiation & Acquisition
Our team handles all negotiations to secure the best possible deal. We’ll guide you through the purchasing process, from making an offer to finalizing the contract, ensuring a smooth transaction.

6. SMSF Compliance
We work closely with your financial advisor and legal team to ensure all SMSF compliance requirements are met. This includes securing financing if needed and aligning the purchase with SMSF regulations.

7. Ongoing Management
After the property acquisition, we offer comprehensive property management services. From tenant relations to maintenance and financial reporting, we ensure your investment continues to perform well.

**Disclaimer:**
Before making any investment decisions, consult with a qualified financial advisor to ensure the strategy aligns with your personal financial situation and SMSF regulations.

Ready to invest in commercial property through your SMSF?

DM “ SMSF “

[email protected]

What’s Driving Industrial Rent Rates in Melbourne? 📈

Industrial rents are rising across Melbourne, fuelled by strong demand and a shortage of quality warehouses.

For investors and business owners, knowing the $/sqm rate is critical to understanding both value and cashflow.

📍 Current Market Ranges (2025):
• Inner Melbourne: $180–250 per sqm
• South-East (Dandenong, Keysborough, Carrum Downs): $110–150 per sqm
• West (Truganina, Derrimut): $95–120 per sqm
• North (Epping, Campbellfield): $100–130 per sqm

🔎 Why it matters:
• Rent drives your valuation (rent ÷ yield = value).
• Location & building features (height, access, office fit-out) can push rates higher.
• Suburbs near major transport corridors continue to outperform.

💡 Tip: Always check the going rent per sqm when assessing a property — it’s the foundation of the deal.

👉 Want the latest rent data suburb by suburb? DM us at STRE — we’ll help you benchmark your property against the market.

How Yields Really Work in Commercial Industrial Property

In Melbourne’s industrial Commercial market, yield is one of the key measures investors focus on — but it’s important to understand the difference from residential.

Yield is the return an investor earns from a property, usually expressed as a percentage of the purchase price.

🔎 Industrial Commercial Property
• Yields are calculated net of outgoings
• Formula: Net Rent ÷ Purchase Price x 100
• Outgoings (rates, insurance, maintenance) are typically paid by the tenant — making the landlord’s income stronger and more predictable.

🏠 Residential Property
• Yields are almost always quoted gross
• Formula: Rent ÷ Purchase Price x 100
• Landlord PAYS all the outgoings, which reduces the real return.

💡 This is why industrial property often delivers true net yields of 5–7% in Melbourne, compared to 2–3% in residential.

👉 If you’re comparing asset classes, always look at net income, not just the headline rent.

📩 Want a yield assessment on your property or a deal you’re considering?

DM ‘Yield’ and we’ll run the numbers for you.

Why Melbourne’s Industrial Commercial Market is heating up 🔥

Melbourne’s industrial property sector is the quiet achiever of Australia’s real estate market. With vacancy rates at record lows, rising rental demand, and consistent yields that outpace residential, it’s no wonder investors and business owners are making the shift.

This isn’t just about warehouses — it’s about securing income growth, building long-term equity, and tapping into Melbourne’s thriving logistics and manufacturing corridors.

Over the next few days, we’ll break down everything you need to know: 📊 yields, market rents, valuations, development opportunities, finance, and strategies that actually work.

👉 Follow along to get clear, expert insights from STRE — Melbourne’s Specialist Commercial Buyers Agency.

📩 Ready to take action?

Send us a DM and let’s start mapping your industrial investment journey today.

STRE.com.au