Retail Reality

Wallet Workout
As this graph shows, there has been a strong long-term relationship between unemployment and retail vacancies.

And were you to base your Investment decisions on this measure alone, you could be forgiven for assuming there will be a healthy couple of years ahead of the retail sector as a whole.
[Read more…]

Industrial Property Back in Favour

Industrial on the move.

Industrial on the move.


During 2011, you should start to see private investors re-enter the market for industrial property, following a fall in vacancies during last year — down some 30% in Melbourne.

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…]

Where to Invest … Right Now!

Last week, you are given a quick overview of the CBD Office scene around Australia. But one of the tightest spots at the moment is the south-eastern Office market in Melbourne.

A recent study by Jones Lang LaSalle revealed there is only 12,200 m2 of space currently under construction — mainly as a result of cautious financiers not being prepared to support speculative development.

As such, vacancies will fall significantly over the next year or so.
[Read more…]

“Cycles Ain’t Cycles”

Overall, Australia has sailed through the Global Financial Crisis more or less unscathed. And from all accounts, Victoria and enjoys the standout economy of all the States.

h3. The Traditional Cycle Has Been Interrupted

Last week, you explored the traditional cycle for CBD Offices — being 18 years from peak to peak. And over that same period, Retail and Industrial properties tend to go through several cycles.

Commercial Property Cycles

However, given Australia’s privileged position within the global scene … my view is you are now at the upswing in the cycle for the Office market. In other words, you are already at the halfway point in the traditional Cycle.
[Read more…]

CBD Offices on the Move

Westpac has just released an Australia-wide outlook for Commercial property. And it predicts you will start to see growth in rents and values during 2010-11.

Two Cities

Two Cities

As employment numbers grow with the improved economy, demand for Office space will also take off again.
[Read more…]