PUBLISHERS LETTER
PUBLISHERS LETTER
Big
Challenges creates different
Opportunities
Welcome to our 6th edition of our annual Commercial Property Investment Guidebook. This year we update you with the latest and greatest on the commercial property front.
The Commercial Property Sector has challenges ahead driven mainly by weak economic growth, currency, political and general market volatility. The market is not only depressed locally but also internationally as well. It is also competitive out there so the smart and fastest movers who are willing to adapt quickly will benefit quicker.
There will be lower growth overall in the wake of infrastructure constraint and low world growth. This is according to Erwin Rode leading property economist at Rode & Associates. He says taxes and tariffs are playing catch up while consumer spend that drives the market is highly subdued and even distressed. He says that REITS and the listed sector has had a great run over the last 10 years but will be reduced to single digit returns over the next couple of years.
www. reimag. co. za
While the Commercial property sector has unique challenges it also has pockets of opportunities for those who can see it and more importantly seize it when it arises. The opportunities include a resilient retail market in tough trading conditions while industrial shows strength in pricing. Rode continues to say that offices are fundamentally cheap but vacancies and poor prospects persist.
Yes it is easier to perform well in good times and a lot harder in tough times but as investors we like to buck the trends. We hope to shed some light on new ideas to open the mind to new ideas and trends that investors can capitalize on.
Successful investing
NEALE PETERSEN
FOUNDER & PUBLISHER
Commercial Handbook 2016 5