Tas Costi’s Key Commercial Property Market Predictions for 2025

Tas Costi’s Key Commercial Property Market Predictions for 2025

Director Tas Costi shares key market insights as institutional capital returns to high-performing sectors like non-discretionary retail and industrial assets. Alternative assets remain strong, while owner-occupiers are increasingly buying over leasing. However, office assets in low-growth areas and unsecured regional investments pose risks. In 2025, strategic acquisitions and a focus on quality assets will be…

Interest rates remain top of mind for commercial investors

Interest rates remain top of mind for commercial investors

After a prolonged period of high interest rates, commercial property investors await the Reserve Bank of Australia’s (RBA) first cash rate cut. For much of 2024, commentary suggested the first cut would happen in mid-2025. But, following a softer-than-expected inflation rate in November, speculation is growing that the RBA may cut internet rates sooner. According…

Retail Expected to Grow in 2025

Retail Expected to Grow in 2025

One of the key trends predicted for 2025 is a retail sector revival, particularly in prime locations. This challenges the idea that retail is in decline due to the growth of online shopping. According to Ray White Commercial, CBD retail assets have shown resilience throughout the overall commercial property downturn, with luxury retail leading the…

Is Now the Time to Buy Commercial Property? – December 2024

Is Now the Time to Buy Commercial Property? – December 2024

The Australian commercial property market is showing signs of recovery, with experts forecasting a cyclical upswing in 2025.  According to Knight Frank’s Horizon 2025 Report, investors who act now could position themselves for strong returns as the market regains momentum. “Investors acquiring assets now, after values have adjusted down, but not yet commenced recovery, will…

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Investing Outside the Box

In the search for high-yielding property investments, some savvy buyers are moving beyond traditional commercial assets, seeking more unconventional opportunities. According to Ray White Commercial, these niche investments are attracting interest due to their potential for strong returns and long-term growth. Car washes, for example, have seen yields normalise to 6-8%, driven by Australia’s growing…

Diversifying your property portfolio: why Industrial and Retail could make a perfect pair

Diversifying your property portfolio: why Industrial and Retail could make a perfect pair

For investors aiming to strengthen and diversify their property portfolio, industrial and retail real estate could be a highly effective combination. Individually, each offers distinct benefits; together, they create a complementary investment strategy that can reduce risk, increase resilience and generate steady returns. Industrial: essential infrastructure for the e-commerce era Industrial properties have seen significant…

Why It’s Important to Invest in A-grade Commercial Assets

Why It’s Important to Invest in A-grade Commercial Assets

Vacancy rates are forecast to fall in the office and retail property sectors, according to the latest NAB Commercial Property Survey, which is positive news for investors. The national office vacancy rate, which is currently at a high 11.2%, is expected to fall to a more moderate 10.1% within the next two years. Meanwhile, the…

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Commercial Property Expert says we’re “Approaching the Bottom of the Market.”

Demand for commercial property exploded in 2021, due to record-low interest rates. During that time, the ‘spread’ (or differential) between the cash rate and average commercial yield rose to as high as 500 basis points, according to Ray White Group’s head of research, Vanessa Rader. However, once interest rates started rising from mid-2022, the spread…

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Jacky He Joins Costi Cohen to Lead Asia Markets Division

We welcome Jacky He to the team as Head of Asia Markets with over six years’ experience representing high-net-worth clients from East and Southeast Asia. Jacky joins us with the cultural knowledge and expertise to service the rapidly increasing demand Costi Cohen is experiencing from overseas investors looking to capitalise on the Australian commercial property…

Why ‘Mum and Dad’ Investors are Choosing to Become Commercial Property Owners

Why ‘Mum and Dad’ Investors are Choosing to Become Commercial Property Owners

Commercial property can offer higher yields, lower maintenance costs, and longer leases than residential property, making it an attractive option in the current market for mum-and-dad investors. While small-scale residential property investing is common, commercial landlords are typically larger property groups or investment funds. Although there are similarities between residential and commercial property investing, key…