Capital City Office Markets Around Australia

AS I EXPLAIN to my Mentor group, there is a certain rule of thumb for Office market vacancies around Australia.

And it’s really quite simple: For an office market to be “in balance” you really need to have a vacancy rate of between 6% to 8%.

It’s a bit like the unemployment rate. You see … a 5% unemployment rate – effectively means FULL employment – because anything lower than this … is starting to put pressure on wages.

Similarly, you need a 6% to 8% vacancy rate with offices – so that companies can legitimately upsize and downsize, with sufficient availability of space. I did indeed burn advice were the normal recipe

Anyway, here is the latest snapshot (courtesy of Savills Research) … as at August this year.

As you can see from the table, both the Sydney and Melbourne markets have firmed to where they have a vacancy rate of 4.6% and 3.6% respectively. On face value, this would normally indicate both markets are getting somewhat overheated.

That may be the case with Sydney. However, Melbourne does have some space coming onto the market shortly – which will probably push its vacancy rate up closer to 6% – returning to a more balanced position.

You have seen the Perth, Adelaide and Brisbane markets show some improvement over the past few months – to where their vacancy rates are personal currently sitting at 19.4%, 14.7% and 14.6% respectively.

What does this mean?

Right now for investors … the Sydney market would appear to be at (or close to) its peak. However, the Melbourne market should still provide you with some good upside over the next few years.

Whereas, the other capital city markets have not really yet bottomed out as yet. And you’d have to expect it is still a little while yet, before those three CBD office markets would be considered attractive.

Hopefully, that gives you a quick overview of what’s currently going on.

Super Funds Are Dominating Commercial Property

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DID YOU KNOW super fund members are some of the biggest landlords in our capital cities?

They own a share of offices, hotels, warehouses and shopping centres. The more cash in super funds, the more properties are bought – indirectly exposing fund members even to some of the most iconic office towers in capital cities. [Read more…]

Previously Hidden Markets Are Starting to Emerge



A RECENT SURVEY conducted by CBRE has revealed growing investor demand for industrial property – at the expense of the retail sector.

This would appear to be mainly driven by the increasing need for warehouse space by online retailers – and in particular, Amazon. [Read more…]

The Manifesto of a Truly Motivated Investor

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LAST WEEK, I was in touch with a number of my current subscribers – simply to confirm whether they would like to take their interest in Commercial property to the next level.

This was not intended to involve my personal Mentor Group. Rather, it was an invitation for those of you who might not be quite ready to invest … but nonetheless, are serious about investing.

And more importantly, motivated to learn as much as possible – to ensure your success, when you feel you’re ready to invest in Commercial property. [Read more…]

Do You Understand Common Commercial Property Terms?

IT SURPRISES ME just how often I get asked to explain some of the more common terminology used with Commercial property.

For the experienced investor, this short article might seem a little ho-hum. Therefore, here is a link for you to download a rather comprehensive list of over 160 Common Terms Used by Commercial Property Investors.

[Read more…]

Why Do Politicians Pay Such Scant Regard to the Truth?


SURELY THE GENERAL PUBLIC aren’t that gullible? Maybe they are.

Everyone knows politicians tend to massage the truth to suit their purpose. However, it seams Bill Shorten is once again trying to mislead people – in much the same way as he did with the “Medi-scare” campaign, in the lead up to the last election. [Read more…]

The 9 Experts You Need on Your Investment Team


AS YOU HAVE gathered, BMT’s main focus is helping investors claim maximum property depreciation deductions. Yet as Chris Lang recommends, we also recognise the importance for property investors to have their own team of trusted experts in place. [Read more…]

Latest Information on the CBD Office Scene


LAST WEEK, the Property Council of Australia released its 6-monthly update on the national Office Market to January 2018. And a few interesting things emerged. [Read more…]

The Importance of Due Diligence When Buying Commercial Property


FIRSTLY, LET’S DEFINE what Due Diligence really means. And then, you need to understand when you should actually consider an in-depth Due Diligence study. [Read more…]

How the Economic Machine Really Works

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MY BACKGROUND TRAINING is as an economist. And yet, trying to explain such things in an easy-to-understand way can often prove rather difficult.

Australia has been more fortunate than most countries emerging from the GFC. And yet, there seems to be a certain complacency regarding our economic well-being. [Read more…]

Is Retail Disruption Feeding An Industrial Surge?

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IN THEIR LAST article, BMT Tax Depreciation took a look at the attractive tax benefits available for you, as an industrial property investor.

However, let’s explore a little further the disruptive influence of Amazon and eBay upon retailers. And how that is having a growing impact on industrial property. [Read more…]