Costi Cohen recently spoke with Jordan McConnell – National Head of Premium Investments at Colliers, about the current commercial property market. Jordan specialises in investment sales and has worked closely with Costi Cohen on many deals over the years.
How long have you been in agency and what do you enjoy most about your role?
“I’ve been in agency for over 13 years, and just coming up to 8 years with Colliers. What I enjoy most about being in commercial agency is the unique opportunities we get to work on, every project is different in its own way. I’ve just taken on a new role as National head of premium investments, which gives me the opportunity to collaborate with our wider platform of agents across the country which is really exciting.”
What are you seeing in the current market as opposed to 12 months ago?
“We’ve certainly seen a softening across a number of sectors in the market, with many purchasers deciding to sit on their hands in the last 12 months. With that said, as one sector slows, we tend to see a refocussing towards other alternative assets.”
What are some tips for commercial buyers and what should investors look out for?
“At this stage in the market and at times of uncertainty, specifically when it comes investors looking for passive or long term defensive investments, I would suggest looking closely at rental profiles, lease expiries and rental growth opportunities that can provide positive rental reversion – for instance looking for opportunities that have CPI rental increases, providing investors with a hedge against inflation alternatively identifying under rented properties with opportunities to reposition or create rental reversion, that’s also something Id be looking for.”
What has been a highlight sale of yours recently?
“One we’re working on at the moment is a portfolio of 11 service stations across NSW. Portfolios are always interesting because they provide their own unique challenges but also the opportunity to put together strategies that assist in unlocking value for the client.”
What are you expecting to see in the new year? Any predictions?
“I believe we’ve still got some headwinds to face coming into 2024, interest rates, inflation, rising construction costs will all still be common themes in the new year.”
