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 .
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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