Retail Sector Still Patchy

RetailPatchy
IN RECENT TIMES, the entire retail sector has been hit on two fronts — with local traders having been challenged by both the highest-rated in dollar, and weakened global economic conditions.

Plus, you’ve also seen a structural shift in how modern consumers are choosing to engage in the market — with the continued growth of online consumer purchases.

The effect of Global uncertainty [Read more…]

Does a Solid Sales Increase in February Mean the Retail Sector is Now Back?

Strip Centres are still strugglingYOU WILL quickly find that there are two different schools of thought:

  1. After much hibernation, Retail property is set to surge again.
  2. With the high dollar, and growth in online shopping, the Retailing has much catching up to do.

Despite Australia having been mostly sheltered from the global financial crisis, retailers (especially in strip shopping centres) have been doing it rather tough.

Before the GFC, Retail property yields had plummeted. In some cases, as low as 3.5% per annum — with investors clamouring for what they saw as “sexy property”. And they believed values would always increased dramatically. [Read more…]

As An Aspiring Commercial Property Investor … Why Are You Procrastinating?

Ready ... Fire ... Aim
I THINK it was management guru, Tom Peters, who came up with probably the best advice on how to overcome procrastination — stemming from the need to have everything perfect BEFORE taking action.

And even though his advice may have originated in the 1980s … it certainly still holds true today, when it comes to Commercial property investors.

Tom Peters’ simple strategy was: “Ready … Fire … Aim!” [Read more…]

Commercial Property: Making Sense of the Retail Sector

Retail Sales Grow with Government HandoutsTHERE HAS been much debate recently about the health of the Retail sector.

And needing to constantly have everything “on sale” has certainly shrunk everyone’s margins. But overall, sales volumes have languished as well.

Yet, maybe there is some light at the end of the tunnel. The ABS just reported that retail sales increased by 1% during June; following a 0.8% rise in May. [Read more…]

Retailing Set to Rebound in 2013

THE FIRST half of 2012 has been rather dismal for retailers. Figures coming out of the ABS tend to confirm anecdotal evidence that retailing is doing it tough.

And none more so than department stores, fashion and electronics. Whereas, food and entertainment remain the only bright spots. [Read more…]

Commercial Property: Decisions … Decisions?

With Commercial Property you have so many choicesIT’S INTERESTING how many investors seem to “graduate” to Commercial property, after first starting out with residential property.

But when you think about it … that’s probably an understandable progression.

So, why would you Purchase Commercial Property?

Once you grasp even the basics of Commercial property, you quickly discover its NET yield is 2 to 3 times that of residential property. But more importantly, your tenants seem to stay 4 to 5 times longer. [Read more…]

Where Do Your Profits Come From With Commercial Property?

You need to anticipate your Tenant's needsAS AN INVESTOR in Commercial property, you need to fully appreciate where your profits actually come from.

In most cases, the key lies with your tenants … who provide you a steady stream of income.

So finding reliable tenants is crucial; which means understanding their needs, and providing them an suitable premises.

Therefore, it is essential that you continually anticipate exactly what your tenants are expecting. [Read more…]

Is the Mining Boom Causing a Surge in New Cafes?

New Restaurants & Cafes are emerging everywhereFOR SOME time now, the RBA has been as assuring us of the flow-on benefits soon to reach the non-mining states of Victoria and New South Wales.

However, these benefits may not be very easy to recognise. And so, let’s attempt to make things a little clearer. [Read more…]

Is The Mining Boom Masking a Major Problem for Commercial Property in Queensland and WA?

Queensland & WA will have the greatest amount of Distressed PropertyTHIS RATHER pressing issue appears to be receiving little or no coverage at all.

But if you listen to the insolvency firms, Western Australia is about to become the “hot spot” for distressed property.

And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more…]

Commercial Property Snapshot: Retail Within The Melbourne CBD

LAST TUESDAY, you gained some insights into the changing Retail scene, for Commercial property around Australia.

According to some recent research by JLL & CBRE (BusinessDay: 29 Feb 2012), these trends are clearly starting to emerge within the Melbourne CBD.

The current vacancy rate is hovering at around 1%. And in part, this is due to the Growing number of people living and working within central Melbourne.

However, part of the reason behind this also lies in the recent entry into the market of several major overseas retailers. [Read more…]

Commercial Property: The Changing Retail Scene

<span class=THERE WAS an article in The Age last Saturday (BusinessDay) — which provided some fascinating insights into Australia’s retail scene.

Based upon GPT’s national portfolio, some interesting long-term trends are taking shape. And while GPT’s overall earnings actually rose by 7% over the past year … it required a fair amount of “fancy footwork” to achieve that. [Read more…]