Commercial Property Cycles

How do you ever understand them?

Before talking to you about Commercial property, let’s take a quick look at Investment Cycles in general.

Investment CycleA recent AFR article contained this rather clever chart … showing an Investor’s mood at different points throughout the Cycle.

My reading would be that Australia is currently at the “Optimism” stage of the upturn — perhaps with some capital cities, a little more so than others. But generally, that’s about where most of us are at the moment.
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“Capture Your Firm’s Full Value”

Last week, we talked about what you could be missing out on … when you find the need to move.

Whenever you decide to relocate to new Headquarters, what are the key things you are seeking to achieve? [Read more…]

Your Baby-Boomer Opportunity!

Whenever you go through a major structural change within society or the economy … opportunities will always emerge.

But you’ll find that Baby Boomers won’t be retiring — well, not in the conventional sense. Most will leave their long-time employment, to establish some type of small consultancy business.

In the past, many well-known firms simply evolved as a result of one generation following the next into the family business.

Traditional Family Business

Traditional Family Business

Invariably, sons (and even daughters) left school to join their parent’s firm. It was a handy way to ensure easy succession; and stood Australia in good stead throughout the 1900s. [Read more…]

A Strong Finish to 2009

By early December 2009, sales of Commercial property in Melbourne’s CBD had almost reached $1 billion — according to a report prepared by Jones Lang LaSalle.

Apparently, Melbourne office sales (for buildings over $10 million) totalled around $998 million — while in Sydney, it had reached $444 million.

Sales may well have topped the $1 billion mark by the end of December, because this strong activity resulted from private investors — particularly, in the region of $50 million.

And following another recent survey, more than half of Colliers’ client said they were expecting to see further growth in 2010.

In the suburbs, strata Office demand remained strong — with smaller owner-occupiers seeking Offices close to shops and main arterial roads.

Your Handy Economic Clock

Over the years, you have probably seen various economic clocks explaining the different phases, and their relative timing.

Economic Clock

Economic Clock

Anyway, I came across this rather useful one the other day.

As you’ll see, it is actually a “Multi-asset Investment Clock” — in that you have all the sectors displayed together: Shares, Property, Resources and Interest rates.

Furthermore, if you click on it … you’ll see the clock confirms Australia is midway through its Recovery phase.

h3. And the timing for Commercial property? [Read more…]

Some Answers in These Troubled Times

There are a couple of questions on the minds of Commercial Property Investors at the moment.

And they go something like this.
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