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brisbane

Buying Offices Requires You To Understand The Local Markets

Suburnban Offices are in DemandNOT THAT long ago, the Office market as a whole was progressing well … right around Australia.

However, following the GFC, each local suburban market has been recovering at a different pace.

Perth rebounded rather dramatically, once the mining sector started to pick up again. And yet it has suddenly plateaued, while mining currently takes a breather. [Read more…]

Can Commercial Property Landlords Continue to Rely on the Government?

Office Workers within the CBDs around AustraliaAND THE ANSWER? Yes, but probably less than previously — due to both the State and the Federal austerity measures, currently being implemented.

Some of the recently-announced public service layoffs will remove the “automatic” component of government take-up, from the CBD Office demand equation. But that’s not altogether a bad thing. [Read more…]

City Office Markets Starting To Reclaim Their Pre-GFC Values

Office Values heading back to pre-GFC LevelsIT HAS TAKEN almost 4 years … but 2012 should see the prime Office markets in Perth, Melbourne and Adelaide expunge the capital value lost through the GFC — according to CBRE research.

In turn, this will impact upon their suburban Office markets as well.

But it might take until 2016 before Sydney, Brisbane and Canberra are able to recoup that same lost ground. [Read more…]

Industrial Property Is Clearly Holding Its Own

Industrial Rentals set to rise, and Selling Yields will begin to firm.Vacancy rates for Industrial property have fallen dramatically over the past year — declining by 39% on average, across the country.

This is mainly the result of strong demand for warehousing, following the high Australian dollar.

Plus, there has only been a modest amount of new construction. And that means you should see rentals improve and selling yields start to firm. [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…]

National Office Market Shows Steady Improvement

LAST WEEK, the Property Council of Australia released its Office Space survey, for the 6 months to January 2012. And this will have some interesting implications for the Commercial property market.

National Vacancy Rates have fallen over the past 6 monthsAcross the 26 markets depicted in this chart … demand was up 20% up and supply 30% down, on the 20-year average for the six-monthly period.

As you can see, total vacancies fell from 9.0% to 7.9% — the lowest since January 2009. And perhaps a quick summary of the CBD Office markets would be worthwhile. [Read more…]

Commercial Property: What Makes for a Balanced Office Market?

EVERY capital city has both a CBD and suburban Office market. And as you can appreciate, keeping tabs on all the various suburban markets is almost an impossible task for most investors.

But generally speaking, the health (or otherwise) of the CBD Office markets within each capital city will provide you with a fairly good gauge of the overall Office scene around Australia.

Accordingly, this graph will provide you with a clear picture of what has occurred over the past 4 years.

As a rule of thumb, Office markets are said to the “in balance”, when their Vacancy Rate lies between 5% and 7%. [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…]

Lack of Construction Underpins
Demand for Office Space

Available Full CBD Office Floors are quickly vanishingThe Commercial property market is driven mainly by supply and demand — especially Offices.

And therefore, with …

  • falling vacancies,
  • positive net absorption and
  • few new projects in the pipeline …

… this means a looming shortage of Office space around Australia — with rentals poised to rise sharply. [Read more…]

Office Sector Set to Surge Ahead

Offices are enjoying strong demand
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.

Offices set to SurgeAccording 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 …

  1. Office (both suburban and CBD)
  2. Industrial
  3. Retail

Now is the time for you to start re-balancing your portfolio — and ride the growth wave through to 2018.


Making Sense of
The Mining Boom

Size-wise, as a proportion of Australia’s economy … Manufacturing and Mining contribute more or less the same output.

 Services rival Mining on Investment However, Mining’s investment spend is currently more than three times that being spent by the Manufacturing sector.

All the media attention has mainly been focused upon this disparity. But that doesn’t really tell you the complete story — as you can see from the first of these graphs. [Read more…]