For this month’s real estate feature, we spoke with Andrew Havig, Director and Portfolio Strategist at Arvon Property Group.
Andrew has spent more than a decade in commercial real estate, beginning his career with JLL before becoming a Partner at Burgess Rawson and later CBRE. Throughout his career, he has been involved in more than 400 commercial property transactions and has built a personal property portfolio of more than 20 properties across Australia. Today, through Arvon Property Group, Andrew helps investors build long-term wealth by sourcing high-performing residential and commercial investment properties, with a strong focus on strategy, data and accessing quality opportunities both on and off market.
With commercial property continuing to attract more attention from investors, we asked Andrew what he’s seeing in today’s market, where the opportunities currently lie and what advice he’d give to someone looking to enter the commercial property market.
1. What are you seeing in the commercial property market right now that most investors aren’t aware of yet?
One of the biggest opportunities many investors are overlooking is the value in existing commercial assets when you compare them to replacement costs. Construction costs have increased significantly over recent years due to global uncertainty, supply chain challenges and rising material costs. As a result, well-located existing commercial properties are becoming increasingly attractive because replacing them today would cost considerably more. Over time, these higher construction costs are also likely to place upward pressure on rents, which can create strong long-term outcomes for investors who purchase quality assets today.
2. Which commercial asset classes are currently offering the strongest opportunities and why?
We’re seeing some of the strongest opportunities in existing retail, industrial, childcare and medical assets. These sectors continue to perform well because they are supported by strong underlying fundamentals. We focus on properties in quality locations with good land content, secure tenants and leases that provide long-term stability. When those fundamentals are in place, they can provide both reliable income and long-term capital growth.
3. How are interest rates and lending conditions impacting commercial buyers and deal activity at the moment?
Higher interest rates and ongoing global uncertainty, including rising fuel costs and geopolitical events, have certainly reduced the number of active buyers in the market. However, experienced investors often see these periods differently. When competition reduces, it can create opportunities to negotiate better deals and secure quality assets that may have been much harder to buy during stronger market conditions. Markets move in cycles and many seasoned investors understand that quieter periods can present some of the best buying opportunities.
4. For someone looking to enter the commercial property market in the next six months, what’s one smart move they should be making today?
The first step is building your A-team. Start by speaking with a mortgage broker to understand your borrowing capacity and the best way to structure your purchase. Then work with an experienced buyer’s agent who can help identify the right asset classes, source suitable opportunities and guide you through the acquisition process.From there, your broker and buyer’s agent can introduce you to an investment-savvy accountant and other professionals who can help ensure you’re making informed decisions from both a finance and taxation perspective. Having the right team around you from the beginning can make the entire process far more strategic and ultimately lead to better investment outcomes.
Andrew’s insights highlight that while commercial property can feel more complex than residential investing, the fundamentals remain the same. Success comes from buying quality assets, understanding the market and having the right strategy in place. For investors considering commercial property, surrounding yourself with experienced professionals and taking the time to understand your options can make a significant difference to both the opportunities you uncover and the long-term success of your investment journey.
