Commercial Property

Commercial Property Hub is a user-friendly digital platform that streamlines the process of finding suitable commercial properties in the City of Yarra and the City of Port Phillip.

&lt;iframe width="560" height="315" src="https://www.youtube.com/embed/D43Ldrb12rs" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen&gt;&lt;/iframe&gt;

It offers an extensive database of commercial properties details, including details about zoning, overlays, and demographic information.

With this platform, businesses and individuals can identify properties that align with their specific needs and requirements.

The platform also provides links to council business concierge programs, which offer additional support to businesses to ensure their smooth operations.

Commercial Property Hub is a one-stop solution for businesses and individuals looking for hassle-free access to comprehensive information on commercial properties in the City of Yarra and the City of Port Phillip.

Commercial Property Hub is a user-friendly digital platform that streamlines the process of finding suitable commercial properties in the City of Yarra and the City of Port Phillip. 

Urban Editorial

Commerical Property Lookup Hub | City of Yarra of Port Phillip

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Nine Entertainment's digital and print real estate media business Domain Holdings is set acquire the Commercialview.com.au website.

For starters Domain will spend $2 million in cash to secure the commercial property digital listings platform, which had most of its footprint in Melbourne and Sydney.

CommercialVIEW.com.au is a stand-alone commercial real estate advertising portal that is industry owned, directed by Ben Cooper, Stephen Gorman, Malcolm Gunning and its CEO Daniel Bignold. Its issued capital is given as $3.8 million, with nine million ordinary shares on issue and 310,000 redeemable preference shares.

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During the past year the board exercised its power to change the option terms with the exercise price of the options reduced from $0.50 to $0.00.
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It was established in 2012 under the stewardship of Petra Sprekos and Enzo Raimondo of the REIV.

In 2016 Bignold made a rare public comment on the state of the website.

Bignold said the dominant players in the market had been able to press prices higher, putting pressure on commercial property agents. 

"We have a price point that’s very fair and reasonable, and is less than our competitors," he noted. 

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Domain Holdings Australia Limited announced its commercial real estate business, Commercial Real Estate entered into a three stage agreement with shareholders of Commercialview.com.au Limited to acquire 100% of the issued share capital in CommercialView.

The acquisition will occur through a subsidiary of Domain, Commercial Real Estate Media Pty Limited (“CREM”), which is currently approximately 70% owned by Domain and 30% owned by members of the commercial real estate industry.

The consideration for the proposed transaction is anywhere between $4.2 million and $17.2 million, contingent on targets relating to the future financial performance of the CREM and CommercialView businesses. 

The on-target consideration is $10.2 million, which is equivalent to four times the projected increase in EBITDA from the transaction for calendar year 2020, including synergies.

The maximum consideration for the acquisition is $17.2 million of which a maximum of $2 million is payable in cash. The remainder is payable in newly issued shares in CREM.

Domain Group CEO Jason Pellegrino said there had been unanimous support for the transaction from CommercialView shareholders.

The commercial property website recently reported another loss in its annual results which gave its revenues as $1.6 million.

It was segmented into $440,000 subscription revenue, $150,000 banner advertising and over $1 million in depth revenue.

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The 2018 financial year loss of the company after providing for income tax amounted to $8,500 compared to its $428,000 loss in the prior year.

Its directors, who noted it was a high demand/low supply commercial property market, slashed marketing expenses from $386,000 to $255,000. 

"For a portal, this is a difficult market to extract revenue as not only stock levels are low, but when stock is listed it generally move fast and doesn’t require large ongoing advertising budgets. 

"Total new listings that hit the CVIEW portal in FY18 compared to FY17 were down 21 percent and listings for sale were down 29 percent yoy. 

"This creates a large void for listing upgrade opportunities particularly investment stock which generally attract a larger advertising budget."

The revenue focus for the year was seeking upgrade opportunities for remaining sales stock and also to leverage the larger proportion of leasing stock in the market.

The business has had a "clear strategy" of tightening up on expenses without negatively impacting the operations, which resulted in a 22 percent reduction in expenses and $150,000 positive full year EBITDA and an $88,000 increase in cash balances for the year. Its assets included $474,000 in cash and $193,000 in trade receivables.

Its deferred tax assets sit at $700,000 plus.
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Completion of the proposed transaction is targeted to occur on 21 December 2018.

The consideration is payable in three tranches, partially contingent on targets relating to the future financial performance of the CREM and CommercialView businesses, as follows:

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	a payment of $4.2 million to be paid at completion as a combination of cash and CREM shares, amounting to approximately a 3.7% equity interest in CREM;
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	a second payment payable in early 2020, in the range of $0 to $5 million to be paid as a combination of cash and CREM shares; and
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	a third payment in early 2021, in the range of $0 to approximately $8 million payable in CREM shares.
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jchancellor-FAypfDUnLy

Commercialview.com.au sold by estate agents to Domain

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GUEST OBSERVER
Investors splashed out a record $29 billion to purchase commercial property (more than $2m) – office, industrial and retail - in the 12 months to December nationally, up 20 percent on the last two years with foreign investors taking a 38 percent share.
The total, comprising more than $17.2 billion worth of office transactions, $4.8 billion worth of industrial transactions and $7 billion worth of retail property transactions, is an extraordinary 32 percent up on the five year average of $22 billion following a similar rise on the $18 billion average in the previous year.
It was more likely than not that significant levels of investment would continue with foreign investment, particularly from China, and institutions, the key players.
What we have seen over the last three years has been an extraordinary investment market in terms of sales by number and value.
Local trusts and funds along with foreign investors have dominated the markets, however in 2015 domestic institutions, recovering from the GFC and replacing private investors as competitive buyers once again, have suddenly found themselves outbid.
While institutional investors were the second largest player with 35 per cent of purchasers, their share of the market had fallen from 48 percent (Funds 31 percent, Trusts 17 percent) in 2014 to 35 percent (Funds 21 percent, Trusts 14 percent) in 2015, while the foreign investor take at 38 percent was more than 70 percent up on its 22 percent share in 2014.
Weakness in the currency, high relative yields and economic growth (however below trend) had been the key drivers while the large amount of off-shore capital seeking  Australian property had encouraged many domestic investors to dispose of property, reweight portfolios and change exposures.
This led to a record year of approximately $29 billion of turnover in commercial property. Conversely, many market fundamentals demonstrated the two-tone nature of the Australian economy – some indicators deteriorated in Perth and Brisbane, many showed substantial improvement in Melbourne and Sydney. Brisbane appeared to have reached a base whilst Melbourne and Sydney continue to improve.
The capital markets had exhibited greater degrees of volatility throughout the year and had finished the year largely unchanged with the ASX200 returning around 1 per cent, the Australian dollar down over 10% against the US dollar and 10 year bonds yielding approximately 2.8 percent.
While property yields have firmed across the board returns remain significantly higher with unlisted property returning up to 10 percent and AREITS returning 13 percent over the last five years. There is no doubt this has also had an impact on investment decisions.
He said the firming of investment yields had yet to fully run its course.
In some markets fundamentals are improving rapidly. We believe this will lead to further tightening in yields as investment capital starts to price in expectations of future NOI (net operating income) growth. This part of the yield cycle is just beginning.
At a glance:
Office sales - $17.2 billion in sales; previous year $16.7 billion; five year average $12.4 billion. 221 properties sold, 326 in 2014.  Foreign investors purchased 45 percent of the stock ($7.6 billion).
Industrial sales - $4.8 billion in sales; previous year $5.55 billion; five year average $3.8 billion;  221 properties sold, 277 in previous year. Foreign investors purchased 36 percent:
Retail sales - $7 billion in sales ; previous year $7.2 billion; five year average $5,8 billion. 197 properties were sold, down from the previous year of 221. Foreign investors purchased 26 percent.
Tony Crabb is Savills Australia’s national head of research and can be contacted <a href="https://www.savills.com.au/blog/author/109174/Tony" target="_blank">here</a>. 
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Foreigners take 38% of record commercial property sales: Tony Crabb

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The 369 Ann Street commercial office building, with street frontage to both Ann and Wharf Streets in Brisbane’s CBD, has undergone extensive refurbishment works by ATG Projects.
ATG Projects is due to complete its refurbishment later this month. The project started at the end of July 2015.
“The four month project has involved creating a new look foyer and forecourt, bringing new life to the entrance,” Lachlan Paulger, from ATG Projects.
“By refurbishing the exterior façade and forecourt, we were able to better utilise space and provide the opportunity for a new restaurant, café and bar fitout for new tenants Collective Kitchen and Bar."
Mr Paulger said Brisbane’s high CBD office vacancy rates means building owners are looking to refresh their buildings to appeal to new tenants and keep up with the market and city trends. 
“It was important that we created a new and inviting entrance, anchored by Collective Kitchen’s tenancy, which will appeal to new and existing tenants as well as passers-by," he said.
Collective Kitchen’s Alisha Kelleher said they worked closely with ATG Projects over the past four months to create their extensive indoors and al fresco dining.
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Brisbane's Ann St commercial office revamp winding down

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GUEST OBSERVER
Whether or not the government removes the ability of self managed super funds (SMSFs) to borrow to purchase property or other investments, the implications for investors are relatively minor.
With rare exceptions, borrowing to purchase assets outside super is far simpler and more tax-effective than borrowing in an SMSF.
Even ignoring the strict regulations governing limited recourse borrowing by an SMSF, the maximum tax benefit from deductions including borrowing costs, depreciation allowances and other expenses is the superannuation fund tax rate of 15 per cent. In pension funds there’s no tax benefit.
In personal names, the tax benefit ranges from 34.5 percent to 49 percent, providing a much larger benefit from borrowing, especially to purchase low-yielding property assets.
Complicating matters for SMSF property purchasers, regulations prohibit related party transactions except in the case of business rental property. In practical terms, the restriction on related party use reduces the tenancy options, preventing use of the property by owners or their children.
No such limitations apply to the use of negative-geared personally owned properties which can be used as a future personal residence by the owner or children. Even after the regulator’s tightening of individual investment borrowing, providing the collateral and obtaining a high loan-to-valuation ratio is much easier than borrowing in an SMSF.
The low 15 percent superannuation tax rate increases the attractions of owning high-yielding assets in super funds instead of in personal names. Property assets generating low current income and steady or even spectacular capital gains are better suited to personal portfolios, especially for longer-term investors.
In superannuation, any capital gains tax rate on gains realised after 12 months is only 10 per cent compared with up to 24.5 percent on gains realised in personal names. Given that capital gains tax is only payable when assets are sold, this advantage is most significant when assets are bought and sold regularly.
Property investments are generally held for longer, particularly compared with shares. For this reason, as well as the higher annual income including franking credits, borrowing to purchase shares in a super fund can help reduce capital gains tax bills.
Borrowing to purchase investments increases the risk of losses if the investments perform poorly. Investors need to be cautious when contemplating gearing their portfolios. Losses generated in superannuation and pension funds are difficult to recover as are losses in personal names. The one consolation for personal investors is the greater value of carry-forwarded capital losses as an offset to future capital gains.
Considering all the above factors, borrowing in an SMSF has major drawbacks.
Daryl Dixon is executive chairman of Dixon Advisory and can be contacted <a href="https://www.dixon.com.au" target="_blank">here</a>.
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Borrowing to purchase investments increases the risk of losses

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SPONSORED POST
Yield is one of the key factors in deciding whether or not to invest in a commercial property. And it is also one of the most confusing for people to understand.
Knowing what type of yield is being talked about, and how it was calculated, will make you a much more informed investor. Unless you know the difference, you won’t be comparing apples with apples.
Basically when it comes to yield there are two types: gross yield and net yield.
Gross yield is everything before expenses. It is calculated as a percentage based on the property’s cost or market value divided by the income generated by the property.
Net yield is everything after expenses. It takes into account all the fees and expenses associated with owning a property. As such, it is a far more accurate way of calculating actual yield. It is also much harder to calculate as most costs are variable.
However factoring in everything you can, and making educated guesses about the things you can’t, will give you a much clearer sense of what the likely yield will be.
What should be included in net yield?
The costs associated with owning a commercial property include annual and one off fees such as taxes, ongoing costs such as insurance and rates, and variable costs such as maintenance and vacancy costs.
Net yield should include fees and expenses such as stamp duty, land tax, strata levies and any legal costs.
Ongoing costs include water rates, council taxes, property management fees and insurance costs. However, a lot of commercial leases pass these costs on to the tenant. You can exclude any costs that are likely to be borne by the tenant.
Variable costs include maintenance and repairs as well as the cost of vacancy.
Commercial properties can take longer to find tenants than residential ones. It makes sense to factor this in to your calculations. For example, you may want to assume that your property will be untenanted for a month so you would deduct one month’s worth of rent from your income.
Calculating net yield
To calculate net yield, you need to deduct all the expenses (ongoing costs + cost of vacancy) from the annual rental income (weekly rent x 52). You then divide that number by the property’s purchase price and times it by 100. This will give you the percentage yield.
Net yield = (weekly rental x 52) – costs / property value x 100
For example, if you buy a property for $750,000 with an annual rental income of $78,000  ($1,500 a week) and yearly costs of $12,000, you would get a net yield of 8.8%.
In this example, the costs include $5500 of ongoing costs and $6500 for one month unrented.
Obviously this is just an example. You will need to review each property on its own merits.
But understanding how the net yield has been calculated (what it includes and excludes) will help you make a more informed decision when investing in a commercial property.
For more information, <a href="https://bs.serving-sys.com/BurstingPipe/adServer.bs?cn=tf&amp;c=20&amp;mc=click&amp;pli=18755997&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">click here</a>.
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
 
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Net yield & gross yield – what’s the difference?

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GUEST OBSERVER
Australian car manufacturers are closing. Ford is closing in October this year. Toyota and Holden are to quit manufacturing in Australia by the end of 2017.
That means that from 2017, Australia will not have a local car manufacturing industry. This will especially impact on companies that make parts for new cars.
One aspect that has not been discussed among the many forthcoming hardships, is the impact on industrial property owners. The suburbs of Melbourne will be hard hit, especially the Northern Suburbs.
Opinions vary as to the number of businesses in the automotive component manufacturing industry but all agree that it is a large number. Many of which are located in Melbourne’s outer suburbs. Administrators appointed to one component manufacturer claims there are 150 firms nationally while Ibis Research says there are 882 businesses. Government committees have relied on automotive aftermarket association membership of 260 as their number.
Many component suppliers’ premises are setup for manufacturing and have limited alternative uses. While there is an ongoing demand for warehouse and distribution industrial properties, these component supplier premises are not considered as they usually lack the necessary high ceiling and high clearance entrance required for storage stacking and large vehicle access.
<h1 style="text-align: left;" align="center">Figure 1. Declining Industrial while Retail and Office do strong </h1>
<a href="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%201.12.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/08/16/Screen%20Shot%202016-08-16%20at%201.12.09%20PM.png" alt="">
The effect on industrial property will happen sooner than we think. In fact, it’s happening now.
The Commercial Property Guide Asking Price Index (API) shows a steady decline in the rent that real estate agents are seeking for their clients’ industrial properties. This contrasts with a healthy increase over recent times for office and retail commercial space.
The industrial property rental asking price has been in a decline since November 2015 (see figure 1.). In May 2016 the asking price for industrial property rents have decreased 1.0 percent in the past three months. In the last two months (June and July) industrial rents have found a new lower level. One area that has been particularly hard hit is the Inner Northern suburbs of Melbourne where demand for logistics and warehouse properties does not appear to have offset the effect of factory rents decreases. Table 1. Shows the last six month changes.
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Feb
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Mar
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Apr
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May
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June
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July
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-3.08
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-1.23
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-3.23
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-3.08
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-3.26
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-1.78
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Table 1. Change over the previous 3 months for Inner Northern Melbourne Industrial Property
With domestic vehicle manufacturing to cease by 2017, the Victorian Government has launched a funding program “Towards Future Industries: Victoria’s Automotive Transition Plan”, to assist businesses, employees and communities to capitalise on opportunities and provide support to those affected.
One group not eligible for direct assistance are factory owners of premises where component manufacture will stop.
The Commercial Property Guide API is starting to tell the story of these parts makers. There is considerable lead-time required to transition out of car parts to a new opportunity. As well as the much discussed unemployment and economic impact, the unintended consequences on commercial property owners is just beginning to be felt.
Simon Rose is chief executive officer, Commercial Property Guide and can be contacted <a href="https://www.commercialpropertyguide.com.au" target="_blank">here</a>.
 
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Real estate early-warning radar for end of car manufacturing

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SPONSORED POST
It comes as no surprise that Australians are spending more time online than ever before. But as technology becomes even more entrenched in everyday life, how and where are we spending that time?
Recent data shows our web habits are changing rapidly as our devices become faster and smarter, with print readerships now in significant decline and more consumers looking to digital as their first source of news and information. And nowhere is this more apparent than in the commercial property space.
Online explosion
Global information firm Nielsen, in its latest Digital Landscape Report, reveals the average Aussie user spent a whopping 72 hours surfing the web in January. That's a whole three days online per person, with an astounding 19.7 million Australians actively surfing online.
“Consumers are increasingly connected online, both in and out of the home,' says Nielsen consumer insights associate director Kate Kopczynski. “Whether they are grocery shopping, watching sport, studying, commuting to work or connecting with friends — these are no longer purely offline experiences.”
Commercial property at the forefront
Nowhere is the online medium's growing dominance better illustrated than on realcommercial.com.au, which has recorded staggering year-on-year growth in the number of users on phones and tablets. People used a phone 997,000 times to access listings on realcommercial.com.au in March this year – a 144 percent year-on-year increase – while more than 218,000 users accessed realcommercial.com.au on a tablet – a 56 percent jump on March last year.
Mobile phones now make up 42 percent of realcommercial.com.au visits alone, and this stunning growth is set to gain further pace as print readerships continue to fall away.
The way of the future
The pace of Australia's digital transformation is such that the landscape is now barely recognisable from where it was just a few years ago. Today, the latest advancements in the commercial property space are centered on technology that knows buyers and consumers better than they know themselves.
Gone are days of sifting through hundreds of properties in a newspaper or online – now it's less about consumers finding the right listings and more about the right listings finding consumers.
This type of 'artificial intelligence', new to the commercial property industry, is designed to put buyers' and sellers' eyes on more of the properties they're interested in, and will forever redefine what it means to list a commercial property online. Watch this space for two exciting <a href="https://www.realcommercial.com.au" target="_blank">realcommercial.com.au</a> products set to change the way we market commercial property.
For more information, <a href="https://www.realcommercial.com.au" target="_blank">click here</a>. 
ABOUT REALCOMMERCIAL.COM.AU: realcommercial.com.au is the leading website in Australia for commercial property, attracting an average of 1.7 million visitors a month (Source: Nielsen Online Market Intelligence, Total Traffic, average calculation May-July 2015, includes app traffic from Omniture Site Catalyst as Nielsen doesn’t report on app). It is owned and operated by realestate.com.au Pty Ltd, a subsidiary of ASX-listed REA Group Limited ACN 068 349 066 (ASX:REA).
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What is the way of the future for commercial property?

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GUEST OBSERVER
Market activity in commercial and industrial real estate can be assessed under two types of market interest.
Owner-occupiers are strong at the affordable end of the market as business operators well understand that it is preferable to own rather than rent the properties they use or need for their businesses.
For many business owners it is much more effective to own rather than rent their premises, especially with the prevailing low interest rates.
It is also quite common to see the property purchased at auction held in the name of a superannuation fund where it is leased back to the operating business at often for an attractive return.
The second strong area of interest is from investors with self managed superannuation funds.
For a lot of SMSF investors a commercial property provides a diversification and they are regularly being advised by their accountants or specialist advisers to acquire a commercial investment.
Certainly the return is usually better than a residential investment because a commercial property that is well and securely leased provides a more reliable income stream than almost any other type of property investment.
I always say that in investing in any type of property the purchaser needs to know and understand the key market fundamentals.
This includes factors like market liquidity, add on costs like State Land Tax and the transaction costs of stamp duties, legals, agency or management fees and transaction costs as both a buyer and as a potential seller.
Often my engagement may involve trying to right the wrongs caused by poor leasing advice and structure to rectify a property’s optimum lease structure.
For instance, I am currently appointed by the Melbourne Theosophical Society to manage the proposed sale of their long held historic building at 126-128 Russell Street.
A landmark four level building in part occupied by the Society it has multiple tenancies and is currently generating an annual rental income of around $350,000.
My expectation is that 126-128 Russell Street will be offered to the market before the end of the current financial year and given the shortage of key CBD freeholds on offer it is likely to be keenly bid.
David O’Callaghan is the managing director of O’Callaghan Commercial and can be contacted <a href="https://www.ocallcommercial.com.au" target="_blank">here</a>. 
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Understanding commercial market fundamentals: David O’Callaghan

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GUEST OBSERVER
When it comes to investment in infrastructure, there’s no question that the NSW Government has work to do. Decades of under-investment in critical services has left a gaping hole, but recent State Budgets have at last announced substantial plans and funding for road, motorways and even more importantly, better public transport.
It’s good news for property as well.  
Infrastructure is vital to economic development and prosperity. Because it comprises the essential services that underpin growth, its development contributes substantially to employment, productivity and competitiveness.
It’s also a very good thing for property markets. Infrastructure upgrades usually result in strong demand in local markets, because property investors will pay more for locations with good infrastructure, or with infrastructure developments in the pipeline.  Transport infrastructure, in particular, both rail and road, makes areas more accessible, and therefore more attractive. This in turn pushes rental growth and occupancy levels in local commercial sectors.
At the same time, infrastructure projects are generally targeted at high growth areas, so this can be used by property developers and builders to estimate employment growth. They boost the local economy by creating new jobs and attracting more people to a precinct, which in turn leads to other, indirect benefits, such as increased consumer spending and the social benefits associated with community development.
According to the <a href="https://www.nsw.gov.au/nsw-regional-infrastructure" target="_blank">NSW Government</a> $20 billion is now being spent rebuilding NSW, and funding to some of the more critical projects has been accelerated. These include the Sydney Metro (City and South-west), the Parramatta Light Rail, Regional Road Freight Corridor and the Western Harbour Tunnel. A new underground railway station at the Barangaroo development in Sydney has also been announced.  In Sydney city, Stage 1 of the Sydney Metro is the $8.3 billion Sydney Metro Northwest is set to open in 2019. Stage 2, extending metro rail under Sydney Harbour and through the CBD is expected to be open by 2024.
For investors seeking to identify areas likely to grow more quickly than others, an understanding of where infrastructure development will be focused is key. Because the effect can be dramatic.  
In 2000, Centuria purchased two properties in Waterloo Road and Byfield Street in Macquarie Park, for $24 million. At that time, there was little infrastructure in the area, and public transport links in particular were poor. Centuria took the view that the area would benefit from planned infrastructure developments, including the Chatswood to Epping Rail Link and the expansion of the Macquarie Centre, both of which were completed. The Macquarie Park office precinct is now larger than the North Sydney office precinct, and there has been an ensuing strong demand for space.
In 2016, Centuria sold the properties for $101 million providing investors with a fivefold increase on their investment and an internal rate of return of over 20% - a significant total return given the sixteen-year life of the fund.
Chatswood is another example of a precinct set to benefit from improved infrastructure and transport links. Sydney’s North Shore office market is already a strongly performing market and in our view is set to perform more strongly still in the coming years. Commercial office space is being withdrawn for residential conversion, which is reducing supply while pushing rents up and vacancy rates down. We believe that the Metro currently under construction will continue to drive above trend growth over the longer term.    
In May of this year, we partnered with global investment manager BlackRock to purchase the best office building in Chatswood -  the Zenith office complex for $280 million. Our 50% stake is held in the unlisted Centuria Zenith Fund, and our forecast is for a 7.6 percent income return in the first year, increasing to 7.7 percent in the 2018 financial year. As for total returns over the life of the fund, we are confident that active management of the property by our specialist asset management team, which includes $30 million in capital expenditure to make the property best in class will result in excellent total returns for investors over the longer term.
Regardless of research or experience, there are no sure things in investment, in property or any other asset class. However, there are themes and trends which influence returns over time. The link between infrastructure spend and the performance of property markets is one of these.
Infrastructure provides essential services that drive economic growth, employment and productivity, and property in the areas where infrastructure is well-developed, performs better than property in other areas. Given the NSW Government’s focus on infrastructure investment, investors would do well to look at areas where money is being spent, and consider the long term possibilities and outlook for commercial property there. 
Jason Huljich is chief executive officer of unlisted property funds for Centuria, and can be contacted <a href="https://centuria.com.au" target="_blank">here</a>.
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