As the year draws to a close, the Costi Cohen team and I would like to extend our gratitude to all our clients, agents and corporate partners who have supported us over the last 12 months.
Recent Achievements and Asset Class Purchase Breakdown 2023
2023 was a record year for Costi Cohen. We had the privilege of witnessing interesting trends and capitalising on phenomenal buying opportunities for our clients. Here is breakdown of our purchases by asset class for the year:
- 25% – Alternative Investment
- 19% – Retail Development
- 14% – Retail Investment
- 14% – Residential Development
- 12% – Industrial Investment
- 8% – Commercial Development
- 5% – Industrial Development
- 3% – Office
Market Dynamics and Strategic Purchases with Costi Cohen
Reflecting on recent market dynamics, we observed a repricing of blue-chip assets, creating a favourable environment for our clients. This adjustment enhanced our ability to secure better deals on their behalf. Clients who engaged with us approximately 12 months ago strategically benefited from acquisitions below market rates, providing a resilient stance against recent interest rate rises. Our clients who purchased this year benefited from an average 18% discount compared to prices 12 months ago.
Key Trends and Off-Market Transactions
The commercial market experienced a decrease in transaction volumes, although key themes have been funds looking to offload stock, and private investors getting the benefit of discounted stock across all markets. We also dealt a lot of clients who did not require funding, who were able to offer quick settlements on quality stock below market value. Notably, we saw a significant increase in off-market transactions, which increased to 90% of our dealings this year compared to our average of 75%-80%. Costi Cohen’s relationships in the marketplace played an important part of being able to get our clients exclusive access to off and pre-market opportunities.
Commercial Market Analysis from Last Quarter:
- Office Sector: Q3 2023 witnessed a substantial downturn, with volumes plummeting by 77% compared to the same period in 2022. However, there was optimism as Sydney CBD office volumes rose by 106% from Q2 2023 to reach $1.2 billion in Q3 2023, indicating a potential rebound.
- Logistics & Industrial Sector: Q3 2023 saw a 38% decrease in volumes, totalling $1.6 billion. Significant sales underscored continued offshore capital attraction.
- Retail Sector: The retail sector experienced a 29% decline in volumes during Q3 2023, totalling $1.2 billion. Active foreign buyer groups contributed to around 19.0% of total investment volumes across all sectors in the first nine months of 2023. [Source: JLL Preliminary Australian Commercial Property
Volumes for Q3 2023]
The New Year
As we reflect on the ever-evolving commercial property landscape of 2023, our focus remains on leveraging market shifts for the advantage of our clients. The prevalence of off-market transactions, coupled with strategic advisory services, positioned us as key contributors to successful commercial acquisitions.
We have many clients engaged and ready to buy in the new year. Contact us today to secure your exclusive mandate with the team for 2024.
Wishing you and your loved ones a safe and happy holiday season.
Best regards,
Tas Costi
