Insider Tips to Help You Discover How to Succeed with Commercial Property
One of the main attractions of investing in Commercial Property is its security.
Unlike residential property … Commercial Property is generally still there performing for you, if the economy does slow down.
However, when the economy is strong, Commercial Property grows in value and provides you with a steady income.
Anyway, for those of you starting out … here’s a list of the benefits you’ll enjoy from successful Commercial property investing. [Read more…]
A week or so ago, I briefly explained to you the NABERS “green rating” system, as it relates to Commercial property.
Recent research (undertaken by the Universities of Western Sydney & Maastricht in the Netherlands) has been released by the Australian Property Institute & Property Funds Association of Australia, under the title of Building Better Returns. [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…]
Yes, I know it is rather confusing. But this is merely an acronym for the … National Australian Built Environment Rating System.
Effectively, it benchmarks existing buildings against one another — where ZERO means a “Poor” rating … and FIVE indicates an “Excellent” green-rated building.
This rating system currently covers Offices, Homes, Hotels and Retail Centres — although the actual criteria do vary between the different types of buildings.
For Offices, they include aspects like … Energy, Water, Waste and the Indoor Environment. Whereas for Hotels, Retail Centres and Homes … it is only Energy and Water efficiency, which is rated.
Since November 2010, owners of Commercial Offices have been required to disclose their building’s NABERS rating — whenever they sell (or lease) any space larger than 2,000 square metres.
Their NABERS rating needs to be displayed in all advertisements; and appropriate documentation is to be available upon request.
The common exemptions would include …
Bottom Line: The penalties for non-compliance can be up to $110,000 for the first day; and then $11,000 for each further day of non-compliance.
However, it does provide you with a great opportunity to capture a strategic advantage … if your building holds the highest possible rating — given its age and condition.
Therefore, this system is important to ensure your property manager is fully ‘up to speed’ on all the various requirements. And if you would like to study any of this in more detail, simply go to the government’s website.
Over the past few weeks, you have been reading articles about the various Office markets around Australia.
As such, you would now be aware of how each capital City compares, in relation to its … Vacancy rates … Rental levels … and expected Capital growth.
However, most of that commentary has been focused upon CBD Offices. And as a result, people have been enquiring about just how the Suburban Office markets are also likely to perform, over the next few years.
Clearly, a rent differential exists between the City and Suburban Office markets. And obviously, that rental gap will also vary, as you move around Australia. [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.
In several recent articles, we discussed the growing health of the CBD Office markets around Australia.
Melbourne still leads the other capital cities with a CBD vacancy rate of 6.2% at the end of March.
And according to Savills’ latest Office Spotlight, the number of whole floors within the city of Melbourne has fallen by some 35% — from 60 to 39 available floors, as at January 2011.
It seems that CBD tenants are scrambling to lock in larger areas, to allow for growth and avoid the expected huge rent increases over the next 5 to 7 years.
As a result, many mid-sized tenants are being pushed out into suburban locations. In turn, this is causing these vacancies to fall and rentals to rise.
As such, Melbourne’s suburban vacancy rate (at 5.8%) is now below that for the CBD.
And Colliers Research believes this could fall below 4% over the next 12 months — through a shortage of new space coming onto the market.
Likewise, Sydney and Brisbane have seen their suburban vacancy rates also decline. And net prime face rents in North Sydney are now up over $600 per sqm.
It would appear only Adelaide’s suburban Office leasing market has remained soft — despite several major sales putting some downward pressure on yields.
Bottom Line: Fundamentally, all the signs are there for continued growth in Commercial rentals and capital values over the next 5 to 7 years — despite the global backdrop creating hesitation for some investors, who are not part of the “Inner Circle”!
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…]
Just take a look around your capital city CBD. And tell me, how many cranes to currently see on the skyline?
Sydney Skyline
The other day, we took a look at Commercial property cycles, and where the various Australian CBD office markets might sit.
Currently, Melbourne seems to be “leading the pack”. But you might be interested to explore exactly why that is.
Melbourne Office Market
Several pundits are suggesting it could be even lower.
h3. And the reason why?
[Read more…]
WHETHER YOU ARE an investor or an owner-occupier, there are important factors to consider when purchasing a commercial property.
In a previous article, I mentioned a helpful App to assist in shortlisting potential properties.
INDUSTRIAL ESTATES are often strong investments due to their versatility and spaciousness, making them ideal for accommodating diverse industries and businesses.
Not only are industrial properties lucrative investments, but they also generate significant depreciation deductions.
Even seemingly ‘empty’ properties hold valuable deductions – which is why this article delves into industrial estates and highlights hidden deductions.
SO, YOU HAVE decided to take the plunge into Commercial property investing. Smart move! But where do you start?
Well, as any serious investor will tell you, having a team of trusted experts by your side is essential for success. These are the people who will guide you and help you navigate the complex world of property investment.
AS THE COMMERCIAL LANDSCAPE is constantly changing, it’s essential for businesses to remain up-to-date with the latest policy developments that may impact their financial strategies.
On 30 June 2030, temporary full expensing ended. Consequently, the Small Business Energy Incentive was introduced and the Instant Asset Write-Off was temporarily extended to a lower level.
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.
AI IS POISED TO HAVE a significant impact on commercial property investing by revolutionising various aspects of the industry.
Here are 7 ways in which AI is expected to affect commercial property investing.
“SUSTAINABILITY” IS NO LONGER a buzzword, but a vital element of any responsible business practice.
In this article, we’ll discuss how businesses and owners of commercial buildings can improve their sustainability and use depreciation deductions to help recoup costs.
