Success in Commercial Property Comes with Consistent Economic Growth

ACCORDING to consulting group SGS Economics and Planning … Australia’s economy grew by 38% during the 1990s; and by 34%, during the 2000s. However, it has only grown by just over 2% since then.

Australia's GDP Growth by Capital CitySo let’s delve into the reasons behind this decline?

If you study the accompanying graph, you’ll notice that Sydney contributed around 27% of Australia’s GDP growth during the 1990s. But then that nearly halved to 14.5%, between 2000 and 2010. [Read more…]

Commercial Property: ANZ Chief Reassures Shareholders of Australia’s Strong Position

Mike Smith is confident about the Australian economy
At last Friday’s AGM, Mike Smith told the ANZ shareholders he was optimistic about the Australian economy … due to its proximity to fast-growing Asia.

In China, the economy grew at 9% over the year. And while many commentators talk about the risks to growth in China, I have been there regularly this year and I am confident about the ability of the Chinese government to manage inflationary pressures and managed the shift from export-led growth, to growth based on more internal demand. [Read more…]

Commercial Property Poised to Take Off in 2012

ALL YOU need is a sprinkling of confidence … with an understanding that things are not as bad as you read in many newspapers.

For some time now, I have been trying to explain how the underlying fundamentals for Australia’s economy and Commercial property are strong.

And a recent AFR headline Recruitment boom bucks the trend (9 Dec 2011, page 41) now confirms that our major law firms are “in the midst of a hiring spree”.

Purely a Matter of ConfidenceHowever, if you still need some more convincing of Australia’s well-being, just take a look at these two graphs. [Read more…]

Do Banks Use a Formula When Lending on Commercial Property?

Getting the Money you need for your Loan

BANKS have a variety of ways of analysing a Commercial property; but there are a few guidelines they all tend to use.

For them, the most important number is the property’s Net Operating Income — which is basically rental minus expenses. As simple as that may seem, the calculation can vary dramatically from lender to lender.

Calculating the Net Operating Income is fairly straightforward. [Read more…]

Commercial Property: The Impact of China

LAST week, The Australian newspaper invited three Commercial property experts to respond to the following question:

If China’s growth story begins to peter out, what will be the impact on Australia’s commercial property market?

China's Impact on Australian Commercial PropertyThose experts included … Greg Marr (MD of DTZ), Tony Crabb (Research Head of Savills), together with me (as CEO of Properly Edge Australia).

And you can read all three responses, which appeared in Saturday’s Weekend Australian [Commercial Property 3]. What I’ve included here below is my contribution to that analysis … [Read more…]

Negotiating to Buy Commercial Property

WHENEVER you find yourself with Power during a negotiation, you are then in a position to have far more control over the ultimate outcome.

Negotiating requires Strategy & TacticsHowever, as you can appreciate, Power can take on several forms. And just to give some examples, you could have the … [Read more…]

How Can Commercial Property Investors Make Any Sense of the Retail Scene?

What's needed is some Retail TherapyACCORDING to the Australian Retailers Association, its members are projecting $39.5 billion in sales from mid-November until Christmas — reflecting an overall increase of just 2% on last year.

Many shoppers still remain extremely hesitant, despite the RBA’s recent interest rate reduction.

Although, with household savings at record levels … people may simply be holding back on their main splurge splurge, until the post-Christmas sales. [Read more…]

6 Tips for Success with Commercial Property

YOU can certainly round out your portfolio and in hence your returns, by investing in Commercial property.

Commercial Property Success involves having a clear investment strategyHowever, it’s important to do your homework; plus, understand that the Commercial market differs from the residential property market.

And provided you undertake the necessary research, you’ll find there is great potential in owning Commercial property. [Read more…]

Be Prepared for Strong Growth in Commercial Property During 2012

Australia stands poised ready to growThe underlying fundamentals for Australia are strong.

All that’s needed is a lift in the general confidence level, for our economy to really take off.

Therefore, the trick is … not to be caught by surprise when it does! [Read more…]

Discover How to Make the Best Choices When Investing in Commercial Property

Prepare for your Commercial Property DecisionsIf you’re looking to purchase a Commercial property to occupy yourself, perhaps you should make it a two-step process — by first renting a property within the location you prefer.

Finding somewhere to lease is relatively easy, as not everyone wants to sell their commercial property.

Most people own Commercial property for investment — which means you would be able to occupy the space, for as long as you keep paying the rent. Plus, you can then discover whether it is the location you want for your business.

Anyway, you may care to check out a few more tips on buying commercial real estate, as you continue reading. [Read more…]

Industrial Property Set to Surge

Industrial Vacancy Rates are fallingThe 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…]