Insider Tips to Help You Discover How to Succeed with Commercial Property
The Commercial property market is driven mainly by supply and demand — especially Offices.
And therefore, with …
… this means a looming shortage of Office space around Australia — with rentals poised to rise sharply. [Read more…]
In last week’s article, you read a general overview of the Retail sector … and some of the issues currently confronting traders.
Let’s now take a quick look at three of the capital cities. [Read more…]
Investing in Commercial property is not “rocket science”.
Nonetheless, there are certain key steps you do need to follow. And those involve you in making a number of simple (yet vital) decisions.
DECISION #1: Your Goals for the long and short term?
In other words, are you seeking Income on Capital growth — or both? Maybe you are after some good Tax savings — through negative gearing or Depreciation? [Read more…]
The market for Industrial property in Melbourne has remained strong over the past 12 months — enjoying a solid demand from tenants, owner occupiers and potential investors alike.
According to Savills Australia, leasing activity for the twelve months to 30 June this year was up by more than 7% on the five-year average for Melbourne.
The dominant tenants clearly came from the retail and logistics sectors — with over 740,000 square metres being leased. And of that amount, just over 200,000 square metres was by way of pre-commitment.
And according to recent research by Colliers International, the current level of rentals and capital values showed increases of between 5% and 18% across the Metropolitan area, during the last financial year. [Read more…]
The last couple of articles have talked about all the misplaced doom and the gloom.
Plus, you also covered the various reasons why Australia overall is well placed to flourish (and not just survive) the current global distress.
A recent report on the Australian Office scene (by Morgan Stanley property research) would only tend to confirm that view. Their only concern would be the Sydney market, due to its heavy exposure to the financial sector. [Read more…]
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.
According 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 …
Now is the time for you to start re-balancing your portfolio — and ride the growth wave through to 2018.
Size-wise, as a proportion of Australia’s economy … Manufacturing and Mining contribute more or less the same output.
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…]
AS YOU know, Property Edge Australia is there to help you in identifying and negotiating the actual purchase of your next Commercial property.
However, you still require certain other key consultants, in order to make every deal really work for you.
And those consultants need to be thoroughly trustworthy.
As you can appreciate, I have had the opportunity to work with a quite number of consultants, over the past 40 years. And I’ve quietly put together a close team of those ones, who have really gone out of their way to look after my Clients’ best interests.
Over the next week or so, I will reveal to you who these Consultants actually are — in the vital areas of:
Anyway, let’s make a start on the first one today. [Read more…]
Around Australia, Commercial clearance rates at auction are now about on par with Residential property — averaging at around 50%.
Victoria seems to be leading the way, with Commercial clearance rates for some types of property approaching 70%.
New South Wales is running about six months behind at? around 60%, with firming yields. And Queensland is probably a further 12 to 18 months away in its recovery. [Read more…]
Within CBDs around Australia, the number of whole Office floors available to tenants is falling rapidly.
In the last post, you heard about the general decline in Office vacancy is within the capital cities.
But here, you’re looking at a situation where large corporate tenants will find it increasingly difficult to secure whole floors within quality buildings — according to Savills Research.
While Sydney still has a greater number of full floors available, these should quickly be taken up with increased activity from the finance and insurance sectors.
Bottom Line: This will put upwards pressure on Office rentals around Australia; and underpin good growth prospects for Commercial landlords, over the next 3 to 4 years.
What a difference a year can make to Office markets around Australia.
Twelve months ago, the rest of the world was anticipating double-dip recession.
And white-collar employment was looking rather fragile here in Australia — particularly for Sydney, with its high exposure to the finance industry.
Even so, Melbourne’s office leasing market remained strong throughout all of last year.
[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.
