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...]
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.
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.
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...]
Let's now take a quick look at three of the capital cities. [Read more...]
Wherever you live, you tend to believe (and will happily tell people) that it is undoubtedly the best place to live.
Really, it's just human nature.
But when it comes to investing your hard-earned dollars into Commercial property … your decisions should be governed by something more than a warm and fuzzy feeling.
For the past four or five years, Victoria has led the nation in economic growth; and it is one of the few enjoying a net growth in migration from other states.
And you'll also notice most of the various service sectors are currently outstripping the mining sector, as far as employment numbers are concerned. [Read more...]
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 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"!
But in a recent survey, the Property Council of Australia (PCA) now makes all of that official: Office vacancy levels have fallen to 9.5% overall — down from 10% in mid-last year. And this has been driven by strong growth in the mining and financial sectors. [Read more...]