Commercial Property

Commercial Property Hub is a user-friendly digital platform that streamlines the process of finding suitable commercial properties in the City of Yarra and the City of Port Phillip.

&lt;iframe width="560" height="315" src="https://www.youtube.com/embed/D43Ldrb12rs" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen&gt;&lt;/iframe&gt;

It offers an extensive database of commercial properties details, including details about zoning, overlays, and demographic information.

With this platform, businesses and individuals can identify properties that align with their specific needs and requirements.

The platform also provides links to council business concierge programs, which offer additional support to businesses to ensure their smooth operations.

Commercial Property Hub is a one-stop solution for businesses and individuals looking for hassle-free access to comprehensive information on commercial properties in the City of Yarra and the City of Port Phillip.

Commercial Property Hub is a user-friendly digital platform that streamlines the process of finding suitable commercial properties in the City of Yarra and the City of Port Phillip. 

Urban Editorial

Commerical Property Lookup Hub | City of Yarra of Port Phillip

<html><body>
Nine Entertainment's digital and print real estate media business Domain Holdings is set acquire the Commercialview.com.au website.

For starters Domain will spend $2 million in cash to secure the commercial property digital listings platform, which had most of its footprint in Melbourne and Sydney.

CommercialVIEW.com.au is a stand-alone commercial real estate advertising portal that is industry owned, directed by Ben Cooper, Stephen Gorman, Malcolm Gunning and its CEO Daniel Bignold. Its issued capital is given as $3.8 million, with nine million ordinary shares on issue and 310,000 redeemable preference shares.

<div class="page" title="Page 25">
<div class="layoutArea">
<div class="column">
During the past year the board exercised its power to change the option terms with the exercise price of the options reduced from $0.50 to $0.00.
</div>
</div>
</div>

It was established in 2012 under the stewardship of Petra Sprekos and Enzo Raimondo of the REIV.

In 2016 Bignold made a rare public comment on the state of the website.

Bignold said the dominant players in the market had been able to press prices higher, putting pressure on commercial property agents. 

"We have a price point that’s very fair and reasonable, and is less than our competitors," he noted. 

<img alt="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/12/17/CommView.jpg">

<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
Domain Holdings Australia Limited announced its commercial real estate business, Commercial Real Estate entered into a three stage agreement with shareholders of Commercialview.com.au Limited to acquire 100% of the issued share capital in CommercialView.

The acquisition will occur through a subsidiary of Domain, Commercial Real Estate Media Pty Limited (“CREM”), which is currently approximately 70% owned by Domain and 30% owned by members of the commercial real estate industry.

The consideration for the proposed transaction is anywhere between $4.2 million and $17.2 million, contingent on targets relating to the future financial performance of the CREM and CommercialView businesses. 

The on-target consideration is $10.2 million, which is equivalent to four times the projected increase in EBITDA from the transaction for calendar year 2020, including synergies.

The maximum consideration for the acquisition is $17.2 million of which a maximum of $2 million is payable in cash. The remainder is payable in newly issued shares in CREM.

Domain Group CEO Jason Pellegrino said there had been unanimous support for the transaction from CommercialView shareholders.

The commercial property website recently reported another loss in its annual results which gave its revenues as $1.6 million.

It was segmented into $440,000 subscription revenue, $150,000 banner advertising and over $1 million in depth revenue.

<div class="page" title="Page 6">
<div class="layoutArea">
<div class="column">
The 2018 financial year loss of the company after providing for income tax amounted to $8,500 compared to its $428,000 loss in the prior year.

Its directors, who noted it was a high demand/low supply commercial property market, slashed marketing expenses from $386,000 to $255,000. 

"For a portal, this is a difficult market to extract revenue as not only stock levels are low, but when stock is listed it generally move fast and doesn’t require large ongoing advertising budgets. 

"Total new listings that hit the CVIEW portal in FY18 compared to FY17 were down 21 percent and listings for sale were down 29 percent yoy. 

"This creates a large void for listing upgrade opportunities particularly investment stock which generally attract a larger advertising budget."

The revenue focus for the year was seeking upgrade opportunities for remaining sales stock and also to leverage the larger proportion of leasing stock in the market.

The business has had a "clear strategy" of tightening up on expenses without negatively impacting the operations, which resulted in a 22 percent reduction in expenses and $150,000 positive full year EBITDA and an $88,000 increase in cash balances for the year. Its assets included $474,000 in cash and $193,000 in trade receivables.

Its deferred tax assets sit at $700,000 plus.
</div>
</div>
</div>

Completion of the proposed transaction is targeted to occur on 21 December 2018.

The consideration is payable in three tranches, partially contingent on targets relating to the future financial performance of the CREM and CommercialView businesses, as follows:

<ul>
<li>
	a payment of $4.2 million to be paid at completion as a combination of cash and CREM shares, amounting to approximately a 3.7% equity interest in CREM;
	</li>
	<li>
	a second payment payable in early 2020, in the range of $0 to $5 million to be paid as a combination of cash and CREM shares; and
	</li>
	<li>
	a third payment in early 2021, in the range of $0 to approximately $8 million payable in CREM shares.
	</li>
</ul>
</div>
</div>
</div>
</div>
</body></html>

jchancellor-FAypfDUnLy

Commercialview.com.au sold by estate agents to Domain

<html><body>
Hi Margaret, I've recently purchased commercial real estate in the last 30 days in VIC (settlement has been completed). I registered it under company "1 PTY LTD", however I wish to change this to a different company (I remain as the company director of the new company). Stamp duty cost me 100k+ (I don't wish to pay this again). Is the above possible without attracting stamp duty on the building if a mistake was made?
 
It may be hard for you to convince the office of state revenue that you made a mistake on this one - when you received the contract it would have asked for the purchaser's detail, the documents would have been signed by you as that purchaser and the State Revenue Office would have relied on these documents for the purpose of assessment of duty. As this one is outside of my own area of expertise I consulted Paul Sande from Asset Conveyancing.  He is an expert in conveyancing in all states, as this area is markedly different from state to state. He believes that there may be another avenue available to you. Sec 250A of the Duties Act 2000 provides for an exemption from duty for an eligible transaction where there is a legitimate reconstruction of corporate groups. An eligible transaction is any of the following that occurs on or after 1 January 2004:- 1. A transfer of dutiable property from one member of a corporate group to another member of the group; 2. A relevant acquisition by a member of a corporate group from another member of the group to which Sec 83 of the Duties Act applies; 3. A declaration of trust to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by one member of a corporate group under which the dutiable property is held on trust for another member of the group; or 4. Any other transaction that results in the beneficial ownership of dutiable property moving from one member of a corporate group to another member of the group. Paul says that the Commissioner needs to be satisfied, amongst other things, that the eligible transaction does not arise from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of the corporate reconstruction exemption. In your case you did this inadvertently and so there was no intent to gain any particular advantage here. Your best course of action is to consult your office of state revenue, explain that you wish to reconstruct the corporate group to have this property held by another member of that group, and see what they say about this.
Have a property question?       <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
</body></html>

mlomas-KC9MUPZ6Ca

Ask Margaret: Convincing the Office of State Revenue

<html><body>
The NSW Government’s stamp duty change may leave many commercial property owners “worse off”, according to property valuation firm m3property.

Owners of less valuable properties may potentially pay more than double after ten years.

Jennifer Williams, the firm’s national director of research, said it was unclear whether the new property tax would achieve its aims.

“We agree that change is required to make the NSW tax system fairer, simpler and less volatile and a broad-based property tax is a good option to achieve this”, she said.

“The devil is in the detail, however, and it is yet to be seen whether an opt-in system will achieve the simplicity the Government seeks or reduce the current revenue volatility given most commercial purchasers are unlikely to opt-in.”

Many purchasers are likely to be disadvantaged by the proposed new system, given the average length of commercial property ownership in NSW is greater than ten years, mp3property suggested.

A hypothetical case study found that after ten years the owner of a property with a market value of $2 million would pay $144,937 under the current system, and $298,061 under the new system.

<img alt="" class="image-article_full_width_580px" height="296" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/m3property.png?itok=HUV0PWBm" width="580">

Whilst the burden on commercial owner-occupier operators appears to be higher for the proposed property tax, stamp duty must also be taken into consideration.

For investors who buy and sell more often, the choice of which tax route to take may be more complicated.

However, the impact on purchasers is likely to vary on the type of purchaser, the property’s land value, the length of time the investor retains the property, and which option a buyer takes at purchase, property tax or stamp duty and land tax.
</body></html>

Many purchasers are likely to be disadvantaged by the proposed new system, says property valuation firm m3property.

max.kwok_55688

NSW stamp duty change likely to leave many "worse off"

<html><body>
Cushman &amp; Wakefield’s National Investment Sales Team has been appointed to sell a portfolio of alternative investment assets across New South Wales, Queensland and Victoria, that are expected to sell for a total of approximately $60 million when they go under the hammer on 10 December in Sydney.
The portfolio comprises 15 freestanding investments across the popular sectors of fast food, fuel and convenience retail and childcare. The fast food assets, situated in suburban and regional locations across the east coast, offer long term leases to major brands including Hungry Jacks, McDonald’s and KFC.
Seven childcare centres are up for grabs in strategic New South Wales and Queensland locations. A NAB retail bank branch in Wagga Wagga, New South Wales, and a Mitre 10 in Airlie Beach, Queensland complete the portfolio.
The auction is expected to be led by a fast food and convenience retail investment on the Gold Coast jointly leased by United Petroleum and ASX Listed Collins Foods (KFC) with a price guide upwards of $8.5 million. In addition, a Dee Why property occupied by KFC for the last 30 years is anticipated to be hotly contested and sell for in excess of $6 million.
A brand-new facility in Brisbane with a 20-year initial lease term as well as a centre in the Campbelltown region of Sydney will lead the childcare offerings.
Cushman &amp; Wakefield’s National Investment Sales team of Michael Collins, Tom Moreland, Aaron Dahl, Yosh Mendis, Geoff Sinclair, Ryan Cross and Billy Dent are managing the sales campaign with the auction of all 15 assets to be held on December 10 at Doltone House, Sydney, and live streamed via Auction Now with live bidding rooms in Brisbane and Melbourne.
The upcoming auction follows the sale of 12 assets for more than $60 million as part of Cushman &amp; Wakefield’s November portfolio auction.
Cushman &amp; Wakefield’s Head of National Investment Sales, Michael Collins, said: “We continue to see the market for private investment strengthen, given the sheer weight of capital targeting defensive assets and yield. The results of our recent portfolio auction show that the appetite among high net worth investors for properties with long term leases and blue-chip tenants continues to grow.”
Cushman &amp; Wakefield’s Associate Director, Tom Moreland, added: “We anticipate a huge level of interest in the upcoming auction, particularly as fast food properties have continued to be one of the best performing assets during the pandemic. Childcare centres also remain high on investor’s wish lists due to the strong Government support provided at the start of COVID-19, with many investors viewing the sector as highly resilient.”
Michael Collins added: “The portfolio coming to market in December is one of the most geographically diverse we’ve seen in 2020 with properties spanning metro, suburban and regional locations up and down the east coast of Australia.”
December 2020 portfolio: • United Petroleum and KFC – 195 Old Coach Road, Upper Coomera (Gold Coast) QLD • Mitre 10 – 2 Carlo Drive, Cannonvale (Airlie Beach) QLD • McDonald’s – 22 New England Highway (Kelly Street), Scone (Hunter Valley) NSW • KFC – 36 Fisher Road, Dee Why (Sydney) NSW • Hungry Jack’s – 15 Commercial Drive, Springfield (Brisbane) QLD • Mobil and Zambrero – 147-153 New England Highway (Bridge Street), Muswellbrook (Hunter Valley) NSW • Ampol Australia Petroleum and Smokin’ Joe’s Pizza &amp; Grill – 250 Epping Road, Wollert (Melbourne) VIC • CBD Restaurant Development Opportunity – Lot 1, 1 Kings Cross Road, Darlinghurst (Sydney) NSW • Paper Planes (Childcare)– 2 Avondale Drive, Thornton (Greater Newcastle) NSW • Play &amp; Learn (Childcare) – 57 Kinross Road, Thornlands (Brisbane) QLD • Open Arms (Childcare) – 122 Dickens Road, Campbelltown (Greater Sydney) NSW • Banora Point ELC (Childcare) – 38 Woodlands Drive, Banora Point (Tweed Heads) NSW • Paisley Park Early Education (Childcare) – 18 Woongool Road, Maryborough QLD • Evolve Education (Childcare) – 100 Callum Street, Cairns QLD • NAB – 72 Baylis Street, Wagga Wagga NSW
</body></html>

j.ballantyne1990-6AQqhLzZaK

Seven NSW & Queensland childcare centres listed for commercial auction

<html><body>
A 600sqm facility in Kunda Park has been leased to Gold Coast company Classic Concrete Pumping on a five-year term.
Jason O’Meara of Savills had the listing. 
The facility at <a href="https://www.realcommercial.com.au/leased/property-12-tectonic-crescent-kunda-park-qld-4556-503439554">12 Tectonic Crescent</a> includes office and warehouse and 1,500sqm hardstand security fenced yard.
Savills received solid enquiry though February and into March as there is currently a massive shortage for sheds this size with useable, secure and compacted hardstand. 
“Standalone industrial properties such as this are in demand at present and there are few of them as most buildings account for 50-55% of site coverage, so to get the extra area for hardstand and truck set down areas is challenging” Mr O’Meara said.
Classic Concrete Pumping emerged 17 years ago when company founder and Managing Director Peter Gisinger had a passionate belief that he could build a successful concrete pumping business.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/9/21/12%20Tectonic%20Cres%20Kunda%20Park%20-%20Tony%20Douglass%20Classic%20Concrete%20Pumping%20Manager%20-%20Sunshine%20Coast%20Right%20Jason%20OMeara%20of%20Savills.jpg" alt="">
 
Four pre-loved concrete pumps, referred to more often as ‘Jurassic’ than ‘Classic’ and eight hard working crew set out to prove their worth. 
Classic Concrete Pumping have resolutely built a reputation for outstanding service and with that built a loyal customer base and grew their fleet, crew and company HQ to keep up.
“We are strongly committed to the Sunshine Coast and committed to industry-best service and customer satisfaction with 90 employees between our 3 locations on the Gold Coast, Brisbane and Kunda Park depot” Peter Gisinger said.
Sunshine Coast Manager Tony Douglass said the business has a very modern fleet in total of 46 units, from line pumps, both low and high pressure, to 3 x 58m booms, and most sizes in between. 
“Our equipment is fully certified, plant registered and periodically independently inspected. These stringent measures guarantee safe, modern equipment to our job GPS tracked means we always know where your machine is”. 
"There has been good industrial leasing traction over recent months in Kunda Park with net absorption of factory/warehouse space on the incline. Industrial leasing activity through Covid to mid-year has been encouraging. 
"We have witnessed some strong lease transactions with Savills leasing 506 Maroochydore Road in Kunda Park to a Brisbane based company Oxworks Pty Ltd.
Other businesses to lease larger facilities in the immediate area recently include Sydney Tools and Express Print and Mail taking up occupancy on Maroochydore Road.
“We are aware of a number of larger tenants looking for suitable space, but with limited options to put to them, and a shortage of land generally mid coast, Savills would be keen to talk to owners with expiring leases or vacant warehouses coming up for lease” said Mr O’Meara.
</body></html>

Tectonic Crescent, Kinda Park facility leased 

<html><body>
Albion Central, a fully leased new service and retail and medical centre boasting a 10-year WALE has been announced for sale. 
The property is being sold by JLL together with Morrison Project Consulting. 
JLL Senior Director and Joint Head of Retail Investments Australia, said Albion Central was of the most outstanding convenience retail centres in Brisbane’s affluent inner north.  
“The freehold interest provides a secure, long term income stream, in addition to a strong capital growth outlook and long-term re-development potential.” 
“At home on 2,400sqm, the centre caters to a high-profile demographic and has a tenancy mix to suit - all are on brand-new 10-year leases with fixed annual rent reviews of 3.50% or higher.
“Offering a 10-year WALE, Albion Central will provide the successful purchaser with a secure, long term income stream. Given the rental position, after 10 years the property will be producing a gross income of over $1,321,000 per annum.” 
The property occupies a corner position fronting the Albion Fiveways on the doorstep to the blue-ribbon suburb of Ascot, Clayfield and Hamilton, with exposure to over 80,000 passing cars per day. 
Just opened in July 2020, the centre is fully leased to seven boutique retailers, anchored by Albion Marketplace and Next Practice Medical.  
Albion Central is being offered For Sale via Expressions of Interest closing September 17.
</body></html>

Albion Central, Brisbane’s inner north retail centre listed for sale

<html><body>
The Border Express distribution centre in South Australia has been purchased by Primewest.
The Border Express property is located within the Northern Adelaide industrial Precinct and returns a net passing income of $1.439 million.
“Border Express was a significant acquisition for the trust enabling it to uphold a 7% pa cash distribution to investors,” said Primewest Managing Director David Schwartz.
“A new five year lease was signed at settlement and of the 50,000 plus square metres of land, only 41% is occupied, allowing for further development potential.”
“We are looking to raise more funds for our acquisition pipeline.”
Mr Schwatz said Primewest remained confident in the future of key industrial and logistics markets nationally, as they continued to benefit from Australia’s growing exposure to on-line retailing and e-commerce as a result of COVID 19.
</body></html>

South Australia's Border Express distribution centre purchased by Primewest

<html><body>
GUEST OBSERVER
We’ve heard a lot about what the present crisis will do to <a href="https://propertyupdate.com.au/coronavirus-how-will-it-impact-australias-property-markets/">home</a> <a href="https://www.theguardian.com/australia-news/2020/mar/16/how-will-coronavirus-affect-australias-real-estate-market-and-house-prices">prices</a>, less about what it will do to <a href="https://www.commercialrealestate.com.au/news/office-property-now-in-covid-19-firing-line-969479/">commercial property</a> prices.
Commercial properties include office buildings, shopping centres, hotels and warehouses.
They account for <a href="https://www.superannuation.asn.au/ArticleDocuments/269/SuperStats-Jun2020.pdf.aspx?Embed=Y">8%</a> of the assets of Australian super funds.
<a href="https://images.theconversation.com/files/351238/original/file-20200805-237-3qmk3f.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/351238/original/file-20200805-237-3qmk3f.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Melbourne’s Wesley Place commercial precinct is owned by a property trust.
If their values drop (and they are falling) it will affect all of us, especially those about to retire or already retired.
Until COVID-19, commercial properties were widely regarded as safe investments. They offered both reliable income streams and capital gains as population growth increased the value of scarce real estate.
With the return on government bonds falling <a href="https://theconversation.com/the-government-has-just-sold-15-billion-of-31-year-bonds-but-what-actually-is-a-bond-143598">below 1%</a> they ought to be becoming more attractive, but offices are empty, their future uncertain, high end shopping centres are receiving less traffic, and hotels have entire floors unused.
<a href="https://images.theconversation.com/files/351240/original/file-20200805-24-17539g9.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/351240/original/file-20200805-24-17539g9.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
In July the number of mobile phones active in Sydney’s central business district was down <a href="https://www.roymorgan.com/findings/8486-roy-morgan-ubermedia-covid-19-movement-sydney-june-27-2020-202008040143">52%</a> on January and February. In Melbourne’s CBD, before the stage 4 lockdown, mobile phone traffic was down <a href="https://www.roymorgan.com/findings/8476-roy-morgan-ubermedia-covid-19-movement-melbourne-july-28-2020-202007270623">65%</a>.
<a href="https://www.smh.com.au/business/companies/data-centres-in-hot-demand-with-remote-working-on-the-rise-20200804-p55ih6">Data centres</a> are among the few commercial property bright spots – we are moving more data – along with distribution centres and <a href="https://www.smh.com.au/business/companies/neighbourhood-malls-flourish-as-shoppers-stay-local-20200723-p55eto">regional shopping centres</a> – we are shopping online and closer to home.
Over the course of the year the values of commercial property trusts listed on the Australian Securities Exchange have slid <a href="https://www.asx.com.au/asx/share-price-research/company/DXS">29%</a>, <a href="https://www.asx.com.au/asx/share-price-research/company/GPT">32%</a>, <a href="https://www.asx.com.au/asx/share-price-research/company/MGR">34%</a>,<a href="https://www.asx.com.au/asx/share-price-research/company/SCG">48%</a>, <a href="https://www.asx.com.au/asx/share-price-research/company/VCX#company-top">52%</a>, and <a href="https://www.asx.com.au/asx/share-price-research/company/URW">69%</a>.
<a href="https://images.theconversation.com/files/351242/original/file-20200805-24-p5j3b2.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/351242/original/file-20200805-24-p5j3b2.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Share price of GPT Group. GPT owns and manages retail, office and logistics properties. 
For super funds with 8% of their assets in commercial property, a decline of 25% in values knocks 2% off their assets — A$54 billion across the industry as a whole.
In the only other big downturn since the advent of Australia’s superannuation system, the global financial crisis, commercial property offered the funds stability while shares were volatile.
Not so this time. The value of the commercial property is diving along with the stock market with just as uncertain a future.<img src="https://counter.theconversation.com/content/143824/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/theodore-connell-variy-1142418">Theodore Connell-Variy</a>, Lecturer, School of Property, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> and <a href="https://theconversation.com/profiles/tony-mcgough-1142730">Tony McGough</a>, Senior Lecturer, Property, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/warning-what-covid-is-doing-to-commercial-property-it-is-about-to-do-to-super-funds-143824">original article</a>.
</body></html>

What COVID is doing to commercial property it is about to do to super funds

<html><body>
The COVID-19 led economic slowdown had a major impact on commercial market sentiment in Q2, with NAB’s Commercial Property Index falling to an unprecedented -62 points (surpassing the previous low of -19 in Q3 2012).
Sentiment collapsed in Retail (-76), Office (-68) and CBD Hotels (-60), but the fallout for Industrial property (-28) was comparatively limited.
Sentiment fell steeply in all states, with VIC (-60), NSW (-63) and QLD (-49), joining SA/NT (-67) and WA (-63) in deeply negative territory.
The hit to confidence was also severe, with the 12-month index falling to -55 and the 2-year measure to -29 -its first ever negative read. The results suggest property experts are not expecting markets to improve any time soon.
With COVID-19 driving new norms around how we work, shop and live, confidence levels are now weakest for Retail and Office property. Confidence has also been shaken (and is now negative) in all states.
Expectations for capital growth for the next 1-2 years were pared back significantly for Office (-4.4% &amp; -3.0%) and Retail (-4.7% &amp; -2.8%), with falls predicted in all states. Industrial values are set to fall moderately in the next 12 months, but the outlook in 2 years’ time is positive.
Office vacancy hit a 2-year high 8.5% in Q2, and climbed steeply in VIC (7.4%) and NSW (6.7%). Retail vacancy also hit new survey highs (9.0%), but industrial property remained insulated, with vacancy falling (5.8%).
As many commercial tenants struggle in the wake of the COVID-19 led downturn, the outlook for rents was pared back sharply for both Retail (-5.6% &amp; -3.6%) and Office (-4.5% &amp; -2.9%) property over the next 1-2 years.
Supply over-hangs have now also emerged in all sectors, bar Industrial.
The number of developers looking to start new works in the next 18 months fell heavily to a survey low 68% in Q2, suggesting the disruption caused by the pandemic has not only had an immediate impact on the building construction industry, but will continue to impact over the next few years.
Property experts indicated that debt funding conditions were more difficult in Q2, and expect it will remain so in the next 3-6 months. With market uncertainty persisting, the average pre-commitment required to meet funding requirements for new developments across Australia rose significantly for both residential and commercial property in Q2.
New research finds that 8 in 10 property experts expect the biggest changes in Office markets from COVID-19 will be the continuation or extension of working from home, and structural changes as to how office space is used.
A large number also expect to see slower leasing volumes and renewals, and cashflow reductions due to firms’ ability to continue operating and pay rent and how this will impact investors’ mindset as key changes. Only 2% believe that conditions will return to pre-Covid-19 patterns.
New research also shows COVID-19 had a big impact on rent collections across all Retail property formats. Bulky Goods Retail and Large Format Retail look to have held up best, with 30% and 21% of property experts reporting no change in collections from these formats. This compares to 7-8% from Neighbourhood and Regional Shopping Centres and in Strip Retail.
At the other extreme, rent collections were 30-50% lower from significantly more Strip Retailers (43%), and were down 50% or more from 45% of Other Retailers, 24% of Strip Retailers and 20% of Regional Shopping Centres.
</body></html>

Commercial Property

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Commercial Property

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News