Wednesday 07 July 2021

2020/2021 EOFY Wrap Up

On many different levels, this year has been challenging for everyone, however, on the other hand, it has also yielded some great results for not only our company and our clients, but for many other industries and businesses. We are very thankful to our clients and their support over this past year and look forward to continuing our relationship with them.

Demand from retail tenants was the first area to pick up after the Queensland lockdown in April last year, closely followed by a demand in city fringe offices. The demand for owner occupiers and investors sub $1.5m and over $20m has not waned throughout the pandemic.

Chris McLeod, Your Commercial Director, commented that, “Another financial year down, and apart from the pandemic, the talk of the town is still very much about real estate.” Chris further added, “Record-low interest rates means that investors have to look for alternative places to park their funds. Quality assets with good tenants are in red hot demand.”

“This increase in interest in property in Queensland can be credited to the strong migration Queensland is experiencing following the impact of lockdowns in the southern states. We expect there to be positive demand from owner occupiers, investors, warehousing, and distributions businesses, as well as increased interest from some operators in the manufacturing sector for the foreseeable future,” said Chris.

Melanie Scott-power, Your Commercial Director, added, “We all wish we had a magic ball to see into the future. We know that interest rates will probably increase next year, we know that when the interstate and international borders fully open that we will see a flood of people moving to our sunshine state and we know that Queensland is a strong possibility of hosting the 2032 Olympic Games, taking all this into consideration, we might experience a slight blip in the market, but overall, the predictions are a continued upward trajectory for Queensland property.”

Lachlan Persley, Your Commercial Leasing Manager, reflects on the change in the leasing market over the past year, “The city fringe leasing market has been strong, especially in the Teneriffe and Newstead office and retail markets. The push to be in smaller free-standing buildings, to be out of the CBD, and to be closer to home were the main drivers.”

With leasing stock still in high demand, particularly character spaces, the team at Your Commercial have noticed short days on market and rent levels being maintained. “The rent levels have remained strong with face rents ranging from $400 - $600 a square metre and incentive levels only at 15 - 20%,” commented Lachlan.

Chris and Mel are hopeful and excited for what the new Financial Year will bring.  As a nod to their success, Mel commented on the importance of the team in the success of the company and the differences Your Commercial employs as a business strategy, giving them an advantage over their competitors, “We could not have finished the year on a record high without our amazing team, and we are extremely lucky to have them so invested in achieving the best possible results for our clients.”

“Two and half years since the launch of our business in April 2020 and the world is thrown into the most serious Pandemic it has had since 1918. All predictions were that the world would freefall into a serious recession," said Mel. “Now that the 20/21 financial year has ended, we are proud of our team and how the business has grown during these challenging times. We look forward to the coming year which is already promising some amazing opportunities for our team."

"When we launched our business, we decided to do things differently and we employed a new approach to running an estate agency. We invested in a young team of Leasing Consultants, Jack, James, and Jayde, to focus solely on the leasing of the tenancies that the Leasing Manager, Lachlan, brings on. Our landlord's benefit, our business benefits and most importantly our team benefits. Instead of always worrying about their next listing, our team can focus on the tenants and on leasing the tenancies."

"We have also taken this approach to our sales department, with Damon and Chris working together when listing and selling our client's properties. This approach has worked, with our vendors commenting how happy they are having a team, versus an individual, work for them.  We are excited about the year ahead and the opportunities that are out there," commented Mel.

“With the market expected to be just as strong and steady this coming Financial Year, Your Commercial is in the perfect position for continual growth and success,” added Chris.

 

Finally, a lot of our property owners are finding themselves surprised with what their buildings are now worth. If you are wondering what your asset might be worth in the current market, Chris (0410 614 302, chris@yourcommercial.com.au) would be delighted to provide you with a free sales market appraisal or Lachlan (0450 770 447, lachlan@yourcommercial.com.au) a free leasing appraisal.