In the realm of real estate, a significant shift is occurring in Queensland, where investors are increasingly turning their focus from residential properties to the often overlooked but highly profitable sector of commercial real estate. This strategic move has proven to be immensely rewarding for individuals like Adam and Vicki Stewart, who have witnessed substantial financial gains following their transition to commercial property ventures.

Adam Stewart, a discerning investor with a penchant for numbers, found himself in a favorable position when he received an offer that exceeded his initial investment by a staggering $1 million within a mere nine months of acquiring his first commercial property—an industrial building situated outside Brisbane. Originally procured for $1.88 million through a private transaction, Stewart opted not to sell the property but instead had it reevaluated. This reassessment enabled him to leverage the increased equity to further diversify his investment portfolio by acquiring a cold storage facility located in Toowoomba.

The decision to pivot from residential to commercial real estate was not arbitrary for the Stewarts. Adam Stewart, reflecting on their transition, highlighted the limitations of negatively geared residential properties, emphasizing that such investments were no longer aligned with their objectives of achieving financial independence and flexibility to balance work commitments with personal experiences and family time. By engaging the services of a seasoned commercial buyer’s agent, Scott O’Neill of Rethink Investing, Stewart was able to navigate the complexities of the commercial property market with confidence and foresight.

Contrary to common misconceptions surrounding commercial real estate, particularly the perceived risks associated with extended vacancy periods, Stewart emphasized the abundance of opportunities available for investors who conduct thorough market research and make informed decisions. Despite initial hesitations from potential buyers, the allure of substantial cash flow and equity appreciation in Queensland’s industrial property sector has proven irresistible for those willing to delve into this lucrative domain.

Scott O’Neill, the managing director of Rethink Investing, shed light on the current landscape of industrial properties in the region, citing a shortage of such facilities that has led to a surge in rental prices, ultimately benefiting property owners with significant returns on their investments. O’Neill likened the situation to a housing crisis, albeit one specific to industrial real estate, attributing the escalating rents to factors such as rising interest rates, reduced owner-occupier purchases, and heightened demand fueled by the construction industry slowdown and robust migration trends.

As Adam Stewart continues to navigate the commercial property market successfully, he has taken on the role of an educator alongside Scott O’Neill, imparting valuable insights to fellow investors seeking to capitalize on the untapped potential of commercial real estate. With their portfolio boasting a remarkable 100% profit margin and generating a substantial passive income stream, the Stewarts have achieved not only financial success but also the freedom to savor a fulfilling lifestyle on the vibrant Gold Coast, liberated from the constraints of traditional corporate roles.

In essence, the transition from residential to commercial real estate in Queensland has emerged as a strategic and lucrative maneuver for astute investors like Adam and Vicki Stewart, underscoring the untapped opportunities and substantial rewards awaiting those who dare to explore the ‘unsexy’ yet immensely profitable side of the property market.