BECAUSE banks have been reluctant to fund speculative development, very little new Industrial space has come onto the market over the past few years.
Demand on the other hand has remained fairly steady; and it's now increasing.
And this will cause rentals to rise over the next few years — as there is only a modest amount of space in the pipeline. [Read more...]
AND 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...]
The Queensland economy may be slow to recover from all its natural disasters. But it's Industrial property sector has been quick out of the blocks.
The boom in Queensland gas now has Brisbane with the lowest vacancy rate for Industrial property.
Next comes Melbourne — with Sydney well back in 3rd place, according to a recent survey by Knight Frank.
And increasing demand will put further upwards pressure on rentals … thereby, encouraging more developers into the market. [Read more...]
The Industrial sector was probably the one most harshly affected by the global financial crisis.
Nobody wanted to expand — being prepared to operate in cramped premises, until a clear picture of economic growth emerged.
However, there has been a growing and now, strong tenant demand reported within the main east-coast cities. [Read more...]
Overall, Australia has sailed through the Global Financial Crisis more or less unscathed. And from all accounts, Victoria and enjoys the standout economy of all the States.
h3. The Traditional Cycle Has Been Interrupted
Last week, you explored the traditional cycle for CBD Offices — being 18 years from peak to peak. And over that same period, Retail and Industrial properties tend to go through several cycles.
However, given Australia's privileged position within the global scene … my view is you are now at the upswing in the cycle for the Office market. In other words, you are already at the halfway point in the traditional Cycle.
[Read more...]
h2. How do you ever understand them?
Before talking to you about Commercial property, let's take a quick look at Investment Cycles in general.
A recent AFR article contained this rather clever chart … showing an Investor's mood at different points throughout the Cycle.
My reading would be that Australia is currently at the "Optimism" stage of the upturn — perhaps with some capital cities, a little more so than others. But generally, that's about where most of us are at the moment.
[Read more...]
Last week, we talked about what you could be missing out on … when you find the need to move.
Whenever you decide to relocate to new Headquarters, what are the key things you are seeking to achieve?
# New premises that perfectly meet your needs — as to design and location;
# A secure lease, with built-in flexibility down the track;
# Rental your business can comfortably afford; and
# A fit-out to suit your team's requirements.
When you stop to think about it … whether it is an Office or a Distribution Centre, the only way to make sure you get everything you want is … you need to "create the finished product" yourself.
But notice, I didn't say Build and continue to Own it.
However, you (more than anyone else) know exactly …
With the proper guidance, you can quickly and easily …
Identify an appropriate piece of land … Obtain a building permit … Enter into a construction contract … Commit to a lease and rental that works for you … and SELL the complete package to an Investor — all before construction actually starts.
h3. What are The Benefits You Gain?
# You end up with the ideal Headquarters, on terms you can live with; plus
# You get to keep the developer's profit, for putting the deal together.
And that profit is generally somewhere between 20% to 30% of the overall cost.
Therefore, if the end-sale of the completed package were to be around (say) $4 million … then your actual profit from making the move could be somewhere between $700,000 and $900,000.
All you need to do is secure the Land and Building permit … with the help of an expert team of consultants, which I'm using with clients on a regular basis.
And in doing so, capture the full value of what your firm brings to the table — whenever you need to relocate.
BOTTOM LINE: The developer's profit goes into your pocket. And you then occupy the ideal new Headquarters, with built-in flexibility for the future.
If this might be an opportunity you would like to explore in more detail … just give me a quick call on 0425 791 254.
This Track-Stop is simply enormous — probably the world's largest! And being located at Tarcutta, it is midway between Melbourne and Sydney.
You may have seen the launch of the marketing campaign on Wednesday, in the national newspapers? And the response has been quite extraordinary.
But you can go straight to a dedicated website, and find out everything about this massive Development Site.
Have a read through all of this material; and then call me if you'd like to talk further, about how to progress things from here.
On several occasions over the past fortnight … I have had to give this very same advice. And so, I thought it might be worthwhile exploring this in some detail with you.
What we're actually referring to are the times when you need to relocate your Firm's headquarters. And in the process, unwittingly forego considerable benefits that are rightly yours.
[Read more...]
"From a very early age ... Chris Lang has always sought to discover what the RULES were for each new challenge — so he could finally master them. And then go on to succeed, at whatever he undertook". More ...
