30 INSIDE Harcourts Jason Luckhardt National Manager Australia, NAI Harcourts jason.luckhardt@naiharcourts.net IN COMMERCIAL Australia Update Australia’s commercial property sector is experiencing challenges in delivery of new construction and the availability of space in the current market. Additional issues that confront the industry are tighter constraints from the lending market, high inflationary concerns and labour supply all of which have in turn impacted trading conditions. Sounds tough huh? Real Estate has never really been different, it cycles up and cycles down, oversupply of stock to scarcity. They say” buy straw hats in the winter and sell them in summer” to make a profit. Good staff and rent rolls for sale are straw hats we need right now. With Commercial markets reporting volumes across USA, Australia and NZ off anywhere from 40-60%, and cap rate expectations blowing out by150-200 basis points (sometimes more) in many mainstream markets, now is not the time to shy from taking strong action. While the volumes have been off, there are a number of significant contributors to propping up the results for our agents and businesses. Consider some of the following factors; • Minimal new and emerging stock as construction labour seeks safety in infrastructure and other government projects. Development sites are being repriced and many not being greenlighted due to poor feasibility. • Reversions of the Work from Home period mopping up latent vacancies • High finance costs and insolvencies bringing distressed assets to the market, but the buyer pool being hampered by hard-line lending policies. • Inflationary environment causing rental rate spikes, which has in turn been a price trade off against increased yield demand. While we cannot solve all the economic issues at hand, our focus is to facilitate property transactions for our clients and customers. Depending on the market you operate in, it may be necessary to pivot from sales to leasing or from owner-occupier to investor and vice versa. Taking strong action in these challenging times is essential for success. Annual Awards and Hx 2024 With the new brand statement of “We make it possible” out in the open it was a great time to look at the opportunities and plan of action for the year ahead. The Commercial cohort that joined us on the Gold Coast kicked off the two days with a workshop that included; • Designly templates in Beta with integrations coming soon • Canva solutions to high level documents – available now • NAI Global Canva templates – available now • NAI Global international listing platform- where it is and how to use it. • Access to the NAI Global University course – Masters in Commercial Property • Mike Lipsey – Systems for success • “Dealmakers” with Jeff Beals- online workshop with downloadable workbooks • NAI Harcourts Conference in Auckland (late 24) • NAI ASIAPAC conference in Vietnam April or May 25 (TBC) • Presentations from Arealytics (Lease and Sale data) A comprehensive presentation on planning and driving best business outcomes from data usage • STAC Capital- presentation and explanation behind commercial lending across the banking and private equity markets, what expectations drive it and how to understand the mechanics and pitfalls of the different finance options. A great line up of mainstage speakers with a crescendo of the Annual awards. Congratulations to all our team across the country, but the night saw the following winners taking out top Commercial spots. Sales/Leasing Top Consultant #1 Albert Fontana (Metro- WA) #2 Phil Grant (Pinnacle – QLD) #3 Ryan Chesney (Pinnacle- QLD) Top Office NAI Harcourts Metro (WA) Shane Kempton (WA CEO) with NAI Harcourts “mafia” from the west. Business owners Oliver Kietzmann (Regional Commercial) and Tony Romano (Metro). Guest speaker Mark Traynor , director of STAC Capital educating the team on commercial debt profiles. On the Blue Carpet with Team Red. (L to R)Oliver Kietzmann (Regional Commercial), Tony Romano (Metro), Jack Thomas (Tenterfield) and Jason Luckhardt (NAIH Australia).
RkJQdWJsaXNoZXIy MTI3ODI1