Investors turn to commercial property as residential pressures mount

In Short:
– Guy Naselli discusses his background in building engineering and transition to commercial real estate with NSL Property Group.
– NSL Property Group provides comprehensive services in commercial real estate, focusing on market trends and investor evaluation criteria.

Commercial property is attracting growing interest from individual investors as changing residential regulations, maintenance costs and tighter conditions push more buyers to explore alternatives.

Guy Naselli, founder and managing director of NSL Property Group, discussed the shift on Whisky & Suits with Chris Christofi and Imran Khan, drawing on more than two decades of experience across construction and real estate.

Naselli’s background as a building engineer helped drive his transition from residential sales into commercial property, where he says investment decisions tend to be more heavily focused on numbers, yields and fundamentals rather than emotion.

Commercial property can also offer investors benefits such as tenants covering outgoings, while development and other value-add opportunities can create additional upside.

Industrial warehouses, in particular, have attracted greater attention from individual investors seeking alternatives to residential property.

When assessing a commercial property opportunity, Naselli recommends investors focus on flexibility, zoning and freehold title.

He also warns investors to scrutinise rental figures carefully, particularly where rents may be inflated, and to assess the financial strength of any special purpose entity involved in a transaction.

The opportunities can be significant. Naselli recounted a recent Broadmeadows transaction involving the unconditional sale of a facility for almost $12 million, secured through targeted outreach and networking.

With NSL Property Group focused primarily on Victoria, particularly locations within two to 25 kilometres of Melbourne’s CBD, Naselli says understanding the fundamentals of each asset remains critical as more investors turn their attention to commercial property.