Buying Commercial Property … By Numbers

Choosing Commercial PropertyAS YOU WILL quickly discover, finding suitable Commercial property investments comes down to a numbers game. And interestingly, many people consider these current times to be a buyers’ market.

However, as a serious investor, you will have found it difficult to identify many really top-notch properties right now. And at the moment, this is probably your #1 concern. [Read more…]

Will China’s Growth Pick Up Again?

China and Australia have Solid RelationsAND WILL it keep underpinning both Australia AND Commercial property? Well, that really depends upon who it is you’re asking.

Most miners are somewhat guarded; many journalists are painting a gloomy picture; and Labor politicians seem to be arguing among themselves.

So, no wonder most of us are confused.

And whenever the general community is confused … it takes what seems to be the safest route, and simply does NOTHING.

This is the dilemma our economy faces right now.

Let’s peek behind the Chinese Curtain … [Read more…]

Improved Productivity Always Brings Pain!

Sector-by-sector Contributuion to GDPUNFORTUNATELY, you simply can’t avoid experiencing some pain … whenever structural changes occur within the economy.

However, these changes also provide considerable opportunities for the shrewd Commercial property investor. But more on that later. [Read more…]

Commercial Property: Where Should You Invest, Right Now?

PCA Office Survey provides a snapshotEVERY SIX MONTHS, the Property Council of Australia (PCA) conducts a nation-wide survey on the state of the Office market around the country.

The accompanying graph will give you a quick snapshot of where things currently stand.

However, even the Commercial property market has been subject to the influences of the much talked about “2-speed economy”. [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…]

Inflation, Growth and Commercial Property

You need to Look Behind the Official Inflation figuresTHE LABOR government is crowing about its latest statistical achievements — low inflation, low unemployment, strong growth and booming investment.

So, why aren’t Australians feeling an overwhelming sense of warmth and well-being? Probably, as my earlier articles have explained … it all comes down to an overall lack of confidence.

Most people are still expecting the RBA to further reduce interest rates. However, barring a European meltdown, that would seem to be rather unlikely in the foreseeable future.

You only need to study these graphs to understand the RBA’s hesitancy — because clearly, the average measures of inflation currently sit at the bottom of the target band adopted by the Reserve Bank. [Read more…]

How to Validate Your Commercial Property Purchase

Carrying out proper Due Dilignce is vitalMANY PEOPLE make the mistake of carrying out the due diligence study BEFORE they acquire their commercial properties.

This can end up becoming a very expensive process — because you can often miss out on the property, whenever someone else snaps it up, before you complete your study.

Therefore, the secret lies in ensuring you negotiate a deal — where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale. [Read more…]

Confirmation That Commercial Property is Trending Up

A-REITs are a good gauge to where Commercial Property is headingWHILE EVERYONE seems to agree that the residential market is currently moving sideways, investors often find it difficult to gauge how direct investment into Commercial property is really travelling.

However, perhaps the best gauge is to take a look at what the share market thinks about A-REITs (Australian Real Estate Investment Trusts).

Generally, these yields tend to operate at about 1.5% to 2% below direct investment into property. Nonetheless, they can be a great indicator of where the present trend is heading. [Read more…]

Australia, the Global Economy and Commercial Property

GERRY HARVEY appeared to sum it up fairly well in a recent interview:
“It was unusual to have such a poor sentiment at a time when Australia’s economy was relatively strong compared to America and some countries in Europe.”

Overseas Property Investors are currently very active Harvey feels Australia has an economy regarded as strong by outsiders. And yet there is a total lack of confidence, and businesses are therefore suffering.

Overseas investors are actively targeting Australian Commercial Property — accounting for around half of all sales of over $30 million. Whereas, local investors remain hesitant. [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…]

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…]