City Office Markets Starting To Reclaim Their Pre-GFC Values

Office Values heading back to pre-GFC LevelsIT HAS TAKEN almost 4 years … but 2012 should see the prime Office markets in Perth, Melbourne and Adelaide expunge the capital value lost through the GFC — according to CBRE research.

In turn, this will impact upon their suburban Office markets as well.

But it might take until 2016 before Sydney, Brisbane and Canberra are able to recoup that same lost ground. [Read more…]

Is It Wise To Borrow When You Buy Commercial Property?

Prudent Borrowing can accelerate your return

There is no doubt, you can certainly accelerate your overall return from Commercial property, by gearing up with a loan.

Even so, you should FIRST make sure that you can say “Yes” to each of the following questions. [Read more…]

Your Timing Within The Commercial Property Cycle

The traditional Investment Clock for SharesIF YOU have invested in the share market, you would most likely be familiar with the so-called “Investment Clock” — which attempts to show how the economic cycle influences equities.

In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.

Some analysts have tried to devise a similar “clock” for Commercial property. But unfortunately, the results have generally not been useful. [Read more…]

Where Do Your Profits Come From With Commercial Property?

You need to anticipate your Tenant's needsAS AN INVESTOR in Commercial property, you need to fully appreciate where your profits actually come from.

In most cases, the key lies with your tenants … who provide you a steady stream of income.

So finding reliable tenants is crucial; which means understanding their needs, and providing them an suitable premises.

Therefore, it is essential that you continually anticipate exactly what your tenants are expecting. [Read more…]

Current Opportunities Within The Commercial Property Market

The "Emotional Cycle" suggests an upturn in activityCONTRARY TO THE VIEW of many pundits, it’s certainly not all gloom and doom out there.

The share market may well have been moving sideways within a 4000 to 5000 band, since 2009.

Plus, the two-speed economy only seems to be benefiting the miners and those within the service industries. And unfortunately, increased savings levels are frustrating the retailers no end.

However, my view remains that Australians are now poised ready to come off the bottom of the “Emotional Cycle” — armed with a level of savings seldom seen in previous upturns. [Read more…]

Is The Mining Boom Masking a Major Problem for Commercial Property in Queensland and WA?

Queensland & WA will have the greatest amount of Distressed PropertyTHIS RATHER pressing issue appears to be receiving little or no coverage at all.

But if you listen to the insolvency firms, Western Australia is about to become the “hot spot” for distressed property.

And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more…]

Commercial Property: The Suburban Office Market

The Suburban Office market is currently your best choiceRIGHT NOW, the Sydney suburban market is trending sideways. And that’s rather good news, because the general consensus was it was about to slump.

While its vacancy rate sits at 9.6%, there is little new space coming onto the market over the next couple of years. [Read more…]

Commercial Property: Global Influence?

Things are picking up within the US EconomyTHE LAST quarter of 2011 saw a definite improvement in the US economy — with consumer spending up, and companies finally replenishing their inventories.

GDP increased by an annualised 3%, with improved sales for durable goods and new homes.

Petrol prices have been cheaper, since mid-2011; and the US jobless rate was the lowest in nearly 3 years.

Therefore, with improved employment figures, consumers have felt more comfortable spending — which represents around 70% of US economic activity. [Read more…]

Commercial Property: What Makes for a Balanced Office Market?

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…]

Lack of Construction Underpins
Demand for Office Space

Available Full CBD Office Floors are quickly vanishingThe Commercial property market is driven mainly by supply and demand — especially Offices.

And therefore, with …

  • falling vacancies,
  • positive net absorption and
  • few new projects in the pipeline …

… this means a looming shortage of Office space around Australia — with rentals poised to rise sharply. [Read more…]

Commercial Property: 5 Key Decisions To Help Guarantee Your Investment Success

 You need to make certain Decisions to Succeed with Commercial property
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…]