Be a man or woman with a plan

When you're just starting out, your main aim is probably just trying to secure a worthwhile property.

However, to be truly successful, you need to have a master plan.

 This may sound a little strange when you are only just about to buy the property. However, you should be looking forward and anticipating things like emerging trends; your lease expiry dates; changing economic circumstances; and the timing of any significant expenditure that will be required on the property down the track.

 You need to care, but not too much. In other words, never fall in love with the property. If circumstances change, then you need to be prepared to part with it – without having any remorse.

 Don’t look to "trade" commercial property in the same way you might do with shares.

When you make your initial assessment to purchase, always have a four-year time frame in mind.

 Many passive investors would prefer to buy a commercial property and then squirrel away the paperwork in their filing cabinets. But every four years you should carry out out a formal review of where your property sits within the marketplace. That won't necessarily mean you need to sell, but it could. What's important is for you to make a considered decision to hold the property for another four years, or sell it, if market conditions are right.

 With commercial property, things will change over time. A history of good performance in any one sector doesn't always mean that will continue. You need to understand how cycles vary for each of the sectors (office, retail, leisure and industrial).

 You'll discover ongoing improvement in value results from two key factors: regular increases in your net rental, and a fall in the capitalisation rate over time. Keep a close eye on things like a looming over-supply of space within that sector, interest rate movements (particularly for retail), and your current position within the growth cycle.

 Investing in commercial property isn't difficult, it simply requires a little forward thinking. And in much of that will come with experience. Alternatively, you can shorten that process by having a team of trusted consultants.