Insider Tips to Help You Discover How to Succeed with Commercial Property
IN LATE JANUARY, the Property Council of Australia released its 6-monthly summary of CBD vacancy rates around Australia.
And not surprisingly, there has been an increase across the board – following a slow return of office work, as a result of COVID. [Read more…]
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.
Across 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…]
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…]
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…]
Savills International has just released a report on the current level of Office supply within the Melbourne CBD.
Melbourne CBD Office Vacancies
The amount of Secondary Office space has also fallen from 108 floors to 89, over the same period.
And underpinning all of this is the level of enquiry, which has jumped by 300% over the last six months.
Just take a look around your capital city CBD. And tell me, how many cranes to currently see on the skyline?
Sydney Skyline
FINANCIAL INSTITUTIONS HAVE a range of methods for evaluating commercial properties, but there are some general guidelines that they typically follow.
One of the key numbers that banks focus on is the property’s Net Operating Income (NOI), which is essentially the rental income minus expenses.
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.
