Vendors receiving premiums as commercial stock continues to be withdrawn.
As demand from a range of investors and owner occupiers for commercial offices continues to rise, Colliers International has identified the increasingly important role that the strata office market plays within Australia and has established a 25 agent national strata specialisation group that spans across 9 offices throughout Australia.
The Investment Services team, led by Matthew Meynell, Head of Investment Services Australia for Colliers International, identified the need for a service specialisation to promote interstate collaboration that enables vendor clients to widen the buyer reach and in turn achieve premium results.
“Colliers International is the only commercial agency to offer this initiative and clients are responding well and seeing extraordinary results,” Mr Meynell said.
The majority of the service group are in contact on a daily bases as a number of interstate deals are transacted across multiple offices. The group regularly facilitate a national teleconference to discuss market trends, key opportunities and who the most active buyers are.
Resulting from a low Australian Dollar and record low interest rates, the Colliers International team are experiencing strong demand from a range of investors both local and offshore for strata properties.
Additionally, as the cost of debt continues to remain at record lows, many businesses are deciding to purchase instead of leasing property as the opportunity to own becomes more financially viable. This is coupled with heavy withdrawals of commercial property for residential conversions which further fuels the demand.
Tom Appleby from Colliers International’s Sydney team believes, “The collaborative approach taken by the agents involved in the initiative ensures best practice and equips us with a bulletproof strategy to regularly achieve premium results for our vendors. Being able to unlock interstate buyers by collectively contributing to one central database is key.”
Most recently the Melbourne and Sydney Strata Groups coordinated the sale of a Melbourne CBD asset to a rural NSW purchaser. The sale of Suite 802, 620 Bourke Street represented an outstanding result for the vendor with a 75% uplift in capital value and a record 4.93% yield.
According to Chris Ling from the Melbourne team “Our client was thrilled with the result and impressed with the collaborative approach throughout the national platform. For us to directly target and reach the purchaser through interstate relationships, the Colliers’ team were able to reach a buyer that perhaps would not have been reached by traditional marketing mediums”.