Mansion Real

Archive for the ‘Commercial Real Estate’ Category

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.

Read the rest of this entry »