Insider Tips to Help You Discover How to Succeed with Commercial Property
The Queensland economy may be slow to recover from all its natural disasters. But it’s Industrial property sector has been quick out of the blocks.
The boom in Queensland gas now has Brisbane with the lowest vacancy rate for Industrial property.
Next comes Melbourne — with Sydney well back in 3rd place, according to a recent survey by Knight Frank.
And increasing demand will put further upwards pressure on rentals … thereby, encouraging more developers into the market. [Read more…]
The Commercial property market is driven mainly by supply and demand — especially Offices.
And therefore, with …
… this means a looming shortage of Office space around Australia — with rentals poised to rise sharply. [Read more…]
Yesterday, I gave my Inner Circle a “sneak peek” at the outline for my brand-new training Course … “Mastering Commercial Property”.
And over the past couple of weeks, I have actually progressed a fair way down the track, in bringing it all together.
However, I just wanted you to see the direction in which it was heading.
Therefore, you can take a look now at just how the website is taking shape. And please keep your feedback coming — because no it’s been just so helpful.
Australia-wide, Office vacancies are falling.
And Melbourne leads the way at 5.5%; with Perth close behind, at 6.6% — due to the rebound in mining activity.
According to the Property Council of Australia, these vacancy levels will reach 4.9% and 6.1% respectively, by January of next year.
With zero space coming onto the market in Melbourne, landlords will be well-placed to renegotiate far more attractive deals, as leases fall due for renewal.
Whereas, Brisbane’s current vacancy level of 9.2% is expected to blow out to 9.8% — making it very much a tenants’ market, as far as lease negotiations are concerned.
While rents are rising in most capital cities, selling yields are set to fall as well. This double benefit will be reflected in strong capital growth over the next four years.
Bottom Line: Shrewd investors are currently ranking their preferred Commercial sectors as follows …
Now is the time for you to start re-balancing your portfolio — and ride the growth wave through to 2018.
My apologies for not posting any articles for the past week or so … but I sneaked away to Noosa with Jenny for a short break.
Anyway, I’ll make it up to you with two articles for this week.
You’ve been aware of my general concern with the Retail sector over the past few years. And that’s because the fundamentals are out of alignment.
Of all the sectors within the Commercial market, most people feel comfortable with Retail. And that’s only natural — because all your family members are usually going in out of shops, as part of their everyday life.
However, familiarity with something doesn’t always make for good investment decisions.
And yet, investors continue to out-bid one another — quite prepared to accept yields as low as 3% per annum, for some Retail investment properties. [Read more…]
In several recent articles, we discussed the growing health of the CBD Office markets around Australia.
Melbourne still leads the other capital cities with a CBD vacancy rate of 6.2% at the end of March.
And according to Savills’ latest Office Spotlight, the number of whole floors within the city of Melbourne has fallen by some 35% — from 60 to 39 available floors, as at January 2011.
It seems that CBD tenants are scrambling to lock in larger areas, to allow for growth and avoid the expected huge rent increases over the next 5 to 7 years.
As a result, many mid-sized tenants are being pushed out into suburban locations. In turn, this is causing these vacancies to fall and rentals to rise.
As such, Melbourne’s suburban vacancy rate (at 5.8%) is now below that for the CBD.
And Colliers Research believes this could fall below 4% over the next 12 months — through a shortage of new space coming onto the market.
Likewise, Sydney and Brisbane have seen their suburban vacancy rates also decline. And net prime face rents in North Sydney are now up over $600 per sqm.
It would appear only Adelaide’s suburban Office leasing market has remained soft — despite several major sales putting some downward pressure on yields.
Bottom Line: Fundamentally, all the signs are there for continued growth in Commercial rentals and capital values over the next 5 to 7 years — despite the global backdrop creating hesitation for some investors, who are not part of the “Inner Circle”!
Industrial on the move.
A Knight Frank survey shows around 300,000 sq metres of space was absorbed … bringing the overall vacancy rate down to under 3% for industrial property.
[Read more…]
Retail property has had some press coverage of late.
It has shown a surprising improvement, given global events and the hike in interest rates.
Westfield (a good retail barometer) reported a strong mid-year result from its Australian shopping centres.
As you can see from the table, Vacancy rates have fallen significantly and Yields firmed — particularly within the strip shopping centres of Melbourne.
And furthermore, rentals have also started to climb … as the economic recovery has given shoppers confidence to start spending again.
Currently yields ranging between 4% and 6.5% across these various strip centres. And would indicate that investors are returning to retail property once more.
If you are planning to acquire some Retail property, you need …
With these in place, you should be able enjoy a good long-term investment.
Anecdotal evidence suggests that consumers are cutting back on their spending around Australia. And it’s likely that luxury items and overseas travel will be the most affected.
A recent article in The Age expounded “The Flight to Value” — where Australian Property Monitors reported a 24% drop in the median price for Toorak Homes, in the 6 months to September.
[Read more…]
With the recent financial turmoil, you’re seeing a number of potential buyers who have pulled back from the Commercial Property Market for the time being.
Therefore, for some properties, you are starting to see the “Neglect Effect” come into play.
[Read more…]
WITH EVERY NEGOTIATION, you always need to be thinking on your feet. And here are several simple Tips to help you do just that.
WHEN YOU EMBARK on your journey as a property investor, it can be overwhelming – with a flood of information and diverse opinions. To help simplify the process, here are five essential tips for new (and seasoned) investors.
IT DOES NOT MATTER whether you’re an investor or an owner-occupier, there are several important factors to consider when purchasing a commercial property to ensure you make the right choice.
In a previous article, I shared a handy App to assist you in shortlisting potential properties. If you haven’t already downloaded it, simply click on the HiReturn Filter over on the right, to install it on your tablet or mobile device.
THERE IS A BELIEF among many experts that a surge in the stock market typically precedes a recovery in the commercial property market by about six months. And the start of this year saw equity markets gaining some momentum.
I HAVE BEEN ASKED countless times about the secrets to a successful negotiation. And I want to share with you the key elements to help make your negotiations effective.
But first, just watch this short video to gain a quick understanding of these three essential elements that form the foundation of every negotiation.
If you’re new to investing, you might be wondering if it’s possible to manage your own commercial property. The short answer is “yes”, but only if you know what you’re doing.
It’s important to note that owning a commercial property comes with certain legal responsibilities, particularly when it comes to compliance with Essential Services requirements under current Building Regulations.
The current trends in the business have made it clear that office landlords have to cater to the needs and preferences of their tenants. Building owners and managers (who understand and meet these demands) will be able to command higher rents and reduce vacancy rates.
To expand on this, here are four key tips to help attract quality tenants.
