Private office suites ,the market darlings! October 2007 RETURN
In 2004 we advised our investing clientele to strongly consider inner suburban & city edge office suites and that the market would grow well into 2008.
As we expected the market demand is in full flight and the supply of new office stock is not coping with demand. It is almost at crisis point and values are set to fly.
Our professional services sector is growing at an enormous rate as major industries are outsourcing for efficiency gains. Financial planners, mortgage & insurance brokers, building inspectors/engineers/surveyors and superannuation experts are to name a few areas of rapid growth.
This has created a tremendous need for quality small to medium office suites and the development industry has not responded quickly enough to supply what is needed to meet the higher demand.
Most of these practitioners need to be mobile to meet clients or do on site work. Most are shunning the cluttered CBD yet it is still a huge advantage to these companies to be centralised and have easy access to major arterials as they dart from one side of town to the other.
Our research has identified some telling statistics:
Melbourne’s north makes up only 8% of the total office supply;
Several northern municipalities boast the highest ratio of white collar workers;
Box Hill activity centre is bursting with a 30 year low in vacancies and rents up 20% in the past 12 months;
SGS Economics& Planning suggest the Northern suburbs are the most under supplied in Melbourne and needs a supply increase of 20% per annum to meet demand requirements;
$2 billion of development at Melbourne Airport, La Trobe University and Bundoora’s University Hill will still fall short of current requirements.
The North is losing valuable commercial income as business can not find suitable accommodation and have to relocate;
Over 200,000 residents will be added to current population over the next decade;
6000 people and 350 businesses have settled in the Docklands in record time as it is the major source of suitable accommodation and infrastructure;
The national vacancy rate in commercial property dropped from 6.1% to 4.8% in only 6 months;
Perth has less than 1% vacancy while Canberra and Brisbane are less than 1.5%, rents are spiralling; and
Billions of dollars are being raised by Property Trusts through the explosion in superannuation funds and this war chest will dramatically effect our commercial property markets
Those who heeded our advice and purchased have already tidy investments in place yet the market has by no means run out of puff. Selected projects with all the right attributes are still ground floor opportunities.
Mum & Dad investors will slowly catch on to the cash flow benefits of commercial property and gradually prices will be forced higher over time. It’s ground floor opportunity for now, yet not for long.
Property attributes we look for are:
Proximity to arterial road infrastructure;
The long term relevance & quality of design, particularly the façade treatment & street presence;
Long term energy efficiencies;
The supply of similar property in the immediate vicinity;
Commercial demand for the precinct; and
Taxation and cash flow efficiencies.
Editors note;
We have successfully sold out several high standard office complexes of late and are only recommending properties that meet our stringent selection criteria. Our investors are already benefiting from their purchases. The last project was sold by invitation only, with out public release.
For those wishing to take advantage of our advice, there is a very limited number of suites available in a stunning off market project adjacent Spencer Street North Melbourne and we are about to launch a cutting edge complex in the growth dynamo that is the Keilor Rd Commercial Precinct. Prices start @ $145,000. Please contact us immediately for pre launch selection advantage.
In 2004 we advised our investing clientele to strongly consider inner suburban & city edge office suites and that the market would grow well into 2008.
As we expected the market demand is in full flight and the supply of new office stock is not coping with demand. It is almost at crisis point and values are set to fly.
Our professional services sector is growing at an enormous rate as major industries are outsourcing for efficiency gains. Financial planners, mortgage & insurance brokers, building inspectors/engineers/surveyors and superannuation experts are to name a few areas of rapid growth.
This has created a tremendous need for quality small to medium office suites and the development industry has not responded quickly enough to supply what is needed to meet the higher demand.
Most of these practitioners need to be mobile to meet clients or do on site work. Most are shunning the cluttered CBD yet it is still a huge advantage to these companies to be centralised and have easy access to major arterials as they dart from one side of town to the other.
Our research has identified some telling statistics:
Melbourne’s north makes up only 8% of the total office supply;
Several northern municipalities boast the highest ratio of white collar workers;
Box Hill activity centre is bursting with a 30 year low in vacancies and rents up 20% in the past 12 months;
SGS Economics& Planning suggest the Northern suburbs are the most under supplied in Melbourne and needs a supply increase of 20% per annum to meet demand requirements;
$2 billion of development at Melbourne Airport, La Trobe University and Bundoora’s University Hill will still fall short of current requirements.
The North is losing valuable commercial income as business can not find suitable accommodation and have to relocate;
Over 200,000 residents will be added to current population over the next decade;
6000 people and 350 businesses have settled in the Docklands in record time as it is the major source of suitable accommodation and infrastructure;
The national vacancy rate in commercial property dropped from 6.1% to 4.8% in only 6 months;
Perth has less than 1% vacancy while Canberra and Brisbane are less than 1.5%, rents are spiralling; and
Billions of dollars are being raised by Property Trusts through the explosion in superannuation funds and this war chest will dramatically effect our commercial property markets
Those who heeded our advice and purchased have already tidy investments in place yet the market has by no means run out of puff. Selected projects with all the right attributes are still ground floor opportunities.
Mum & Dad investors will slowly catch on to the cash flow benefits of commercial property and gradually prices will be forced higher over time. It’s ground floor opportunity for now, yet not for long.
Property attributes we look for are:
Proximity to arterial road infrastructure;
The long term relevance & quality of design, particularly the façade treatment & street presence;
Long term energy efficiencies;
The supply of similar property in the immediate vicinity;
Commercial demand for the precinct; and
Taxation and cash flow efficiencies.
Editors note;
We have successfully sold out several high standard office complexes of late and are only recommending properties that meet our stringent selection criteria. Our investors are already benefiting from their purchases. The last project was sold by invitation only, with out public release.
For those wishing to take advantage of our advice, there is a very limited number of suites available in a stunning off market project adjacent Spencer Street North Melbourne and we are about to launch a cutting edge complex in the growth dynamo that is the Keilor Rd Commercial Precinct. Prices start @ $145,000. Please contact us immediately for pre launch selection advantage.