Raine and Horne Commercial

INSIGHTS SPRING 2018 | 2 Welcome to Raine Horne Commercial Insights for Spring 2018. If the current commercial market could be summed up in a single word it would be “industrial”. Virtually across the nation, demand for industrial assets is absolutely forging ahead, underpinned by the growth of online shopping and by an army of small to medium-sized enterprises (SMEs), which are taking advantage of low interest rates to own their premises. Many SMEs are discovering there’s very li le difference in the cost of owning versus leasing, and of course, buying your premises provides the backing of a solid investment in commercial property with the opportunity to refurbish according to needs. While industrial property has been named as the pick of the crop by the majority of Raine & Horne Commercial’s property experts, there are also strong opportunities in the retail and office markets. The overwhelming view is that the nature of retail is changing – driven largely by the growth of online retailing. But in an evolving market, a different type of tenant is opting for retail properties. Michael Buium of Commercial Bondi Junction sums this up neatly, saying the frocks and jocks traders are being replaced by nail salons, gyms, and cafes. Along with business owners, self-managed super funds (SMSFs) continue to be key players in the commercial property market, and we expect this trend to continue given the cooling of the residential property market. However, it is important to point out that a number of banks have tightened their lending criteria. This highlights the need for buyers to present a strong case, and along with having up to date financials it is critical to focus on quality properties. With the commercial property market offering an abundance of opportunities for spring 2018, I encourage you to tap into the insights of Raine & Horne’s Commercial property experts right across Australia. Angus Raine Raine & Horne Group Executive Chairman