When assessing a commercial investment, experienced investors know that yield is only part of the equation.  

The more important question is whether the tenant will still be there in five, ten or 20 years’ time.  

Kollosche Commercial sales agent Adam Grbcic says tenant longevity is key when considering an investment with health-related assets among some of the most premium opportunities.

“Investors prefer tenants such as medical centres, dentists and veterinary clinics because over time they build an established customer base, who are in the habit of going to the same location,” Adam says.

“Relocating would leave them at risk of loss of client retention or loss of business, so they very rarely move.” 

Yet, the reasons to stay put go beyond just customer habits.  

Adam says healthcare operators typically invest heavily in purpose-built fit-outs and specialised infrastructure that are costly and time-consuming to replicate elsewhere.  

“Planning approvals and regulatory requirements add further friction to any relocation and because these businesses deliver essential services, demand tends to hold more steadily throughout economic cycles than discretionary retail or hospitality,” he says. 

These fundamentals are helping drive a high level of enquiry around a commercial unit the Kollosche commercial team has listed in Nerang.  

Open to expressions of interest, the purpose-built 186m² strata-titled clinic at 4/79-81 Price Street, generates just over $108,099 net income per annum, with 100 per cent of outgoings recoverable from the tenant, Greencross Vets.  

Greencross Vets are part of a national 24-hour, seven-day a week pet health and wellness network and have occupied the building for more than 20 years. The property has a lease to June 2027 with two further three-year options. 

Positioned within Nerang’s established commercial precinct with dual frontage and direct M1 access, Adam says the property offers income security backed by two decades of proof. 

While this would be a compelling offering for any investor, Adam says there is a second layer to the investment that strengthens its appeal.  

“Nerang attracts a lower level of rent, but the vet’s pricing would likely be the same in a higher rental location. Because rent is one of a business’s largest overheads, lower occupancy costs translate into stronger margins and better business sustainability.” 

To enquire about the property at 4/79-81 Price Street, or for commercial investment advice contact Tony Grbcic on 0407 968 667 or Adam Grbcic on 0404 087 772.