Maximising your commercial real estate in Sydney | Title Company
Maximising your commercial real estate in Sydney
Article by Tim Green Commercial
Since the construction of new commercial buildings is said to slow down over the next 3 years, analysts at Jones LaSalle recommend improving the condition of existing buildings to meet the demand for commercial real estate in Sydney once the market recovers.
But why refurbish old Sydney commercial real estate? There are 4 simple reasons:
1. Retain market value.
In today?s economy, the market has become more discerning regarding the physical condition of an asset, as well as tenant quality and lease expiry profile. The restoration of a Sydney commercial real estate will significantly enhance its market value, as well as its capitalisation rate.
2. Increased vacancy rates.
As vacancy rates in the Sydney commercial real estate market increases, there is even greater competition to attract and retain tenants. Moreover, since supply exceeds demand, tenants have greater bargaining power. Owners who fail to improve and maintain the condition of their buildings run the risk of losing rental incomes, tenants and return on investment.
3. Economic recovery.
Many experts now predict a boost in the commercial property market by late 2011, particularly as white collar employment steadily improves, lowering office vacancies. As Sydney accounts for 30% of all banking and financial employment in Australia, as well as 60% of all national economic growth, the commercial real estate in Sydney is also predicted to improve in the next three to five years.
Building owners who reposition their commercial property through renovations and better maintenance, will have the upper hand during the market upswing.
4. Limited supply of new commercial buildings.
Forty-six per cent of Sydney commercial real estate is over 30 years old. And since the construction of new commercial real estate in Sydney winds down over the next three years, owners who refurbish and improve the sustainability of existing buildings, will be in a favourable position with tenants for the better economic times ahead.
This article brought to you by Tim Green Commercial ? Maximising your commercial real estate in Sydney. For more information on Sydney commercial real estate or for expert property management advice, please visit Tim Green Commercial
Tim Green Commercial is Sydney?s leading boutique Commercial Real Estate agency that offers commercial leasing, sales and property management in the CBD and greater metropolitan area.
About the Author
Tim Green Commercial is Sydney?s leading boutique Commercial Real Estate agency that offers commercial leasing, sales and property management in the CBD and greater metropolitan area.
Source: http://www.titlecompanyofcolorado.net/maximising-your-commercial-real-estate-in-sydney.html