Insider Tips to Help You Discover How to Succeed with Commercial Property
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses. [Read more…]
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.
Bank of America’s most recent survey of fund managers for 2023 indicates that this momentum is expected to remain strong.
FOR WHAT IT’S WORTH … my view is that there is growing evidence to suggest inflation will not be as sticky as many pundits would have you believe.
Despite a recent surge in residential rentals, Australia’s inflation seems to have reached its peak and is expected to rapidly recede. And that’s evidenced by the June figures just out, showing that inflation has fallen from 7% to 6% per annum, over the last quarter. [Read more…]
CONCERN OVER HIGH INFLATION is what is causing the RBA to continue raising interest rates.
So the real question is … will the latest Budget be responsible for adding to inflationary pressures?
Anyway, let’s quickly pick apart the critical issues of the latest Budget – as far as they relate to Commercial property. [Read more…]
AUSTRALIA HAS ALWAYS BOASTED a solid immigration rate – to the point, where about 30% of our population has actually been born outside the country.
During the pandemic, immigration numbers fell dramatically. As a result, vital skills shortages emerged among building & construction, hospitality and rural workers.
Over the years, the best-performing countries (where Australia stands out) were generally resource-rich, new-world countries with strong population growth and a good record with corporate governance. [Read more…]
WITH A CLEARER OUTLOOK for interest rates, Commercial property is expected to bounce back in 2023. Particularly, with several pundits suggesting the RBA could well start to ease rates again later this year.
There will be some investors, who may initially take a cautious approach. [Read more…]
IF WORKING FROM HOME is so appealing, why are businesses and governments choosing to hold onto their office space – and in many cases, lease even more?
According to the Property Council of Australia, Melbourne’s CBD towers were only 12% occupied in December – but 88% leased. And Sydney’s CBD towers were 23% occupied, but 91% leased. [Read more…]
DESPITE THE RECENT new Omicron variant, consumer demand is surging against the backdrop of labour shortages, supply chain blockages and recent price increases.
All of this is causing confusion and some concern. And pundits around the world are detailing strong Inflationary pressure – which usually means interest rates are likely to increase, sooner rather than later. [Read more…]
BEFORE THE PANDEMIC, there was a shortage of office space looming within the Sydney and Melbourne CBDs.
In fact, both were heading towards unhealthy vacancy levels of around 2% to 3%.
However, with extended lockdowns and some new supply coming onto the market … all that has clearly changed. [Read more…]
LEAVING ASIDE the effect of Covid has had on the general economy, the consequent drop in population growth and immigration will have a lasting impact upon … [Read more…]
IF YOU REMEMBER back to last May and June of last year, I explained that the economic decline caused by COVID was quite different from any other recessions.
What we experienced was a Medical Crisis with economic implications. As opposed to a total collapse of the Financial System – as you experienced during the GFC. [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.
