The Institutional Real Estate Letter - Australia
September 1, 2014: Vol. 3 Number 3Buy For $65.00 Add to Cart
A tall order: finding investments in Australia's office market may mean moving up the risk curve
While demand and pricing for prime CBD office properties remain sky-high in Australia, the ground is shifting beneath the country’s overall office sector, which has been hit with widespread increases in vacancy rates and continues to suffer from weak overall fundamentals.
Property funds are back: PIR's survey of Australian property funds reveals gains in manager AUM
Every year, Property Investment Research updates what we believe to be Australia’s largest and most comprehensive property funds database. We compiled our findings into PIR’s 2014 Australian Property Funds Industry Survey. Here are highlights from the survey’s latest edition.
A good fit: global cities and real estate investors are best mates
Real estate investors know what they like. They like global cities, the furnaces for growth. They like the kind of substantial commercial building that you often find in major city centres and they like those buildings to be tenanted with the kind of stable, long-term global employers that base themselves in those city centres to service their customers and maximise their chances of finding and keeping the kind of employees that they need to run their businesses smoothly and efficiently.
The tech horizon: investors must continually consider and adapt to new technologies
In 2004, the US government announced a competition with a US$1 million (A$1.1 million) prize: could a driverless car make it across a 150-mile obstacle course in the Mojave Desert? In the end, Uncle Sam kept his money. Fifteen cars qualified for the final race. None made it further than 7.3 miles.
A global path for super funds
Few investors can ignore the portfolio benefits of global real estate for generating returns, providing diversification and long-term income production. With a shortage of available core real estate within Australian borders, major Australian investors are now looking to develop their capabilities for investing in property markets overseas.
Global alternative assets growing part of investor portfolios
Real estate heads the list of alternative assets held by the top 100 alternative investment managers globally, with 31 percent, according to Towers Watson's Global Alternatives Survey 2014, released in July.