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02-10-2014, 07:48 AM
Office and industrial sectors lead way in transactions
Mercedes Ruehl
385 words
2 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Commercial property sales are closing in on the record number achieved in 2013, with preliminary figures from real estate groups CBRE and JLL showing volumes have been led by the office and industrial sectors.
Sales jumped compared with last year. CBRE recorded $5.42 billion in sales for the September quarter, a 10 per cent increase on the same period in 2013. JLL preliminary figures show $5.89 billion worth of office, industrial and retail assets change hands, compared with $4.9 billion in 2013. The office sector led the charge. Sales driven by office buildings were up 62 per cent year on year for CBRE.
"The trend for domestic and international capital chasing core office opportunities continues, with many groups lowering their expected total returns," CBRE's head of capital markets and institutional investments Josh Cullen said.
Among the biggest transactions during the quarter were 52 Martin Place in Sydney for $555 million, a half share in Westpac Place in Sydney for $435 million and the CBW Buildings in Melbourne for $608 million.
"For the office sector alone, national volumes for the first nine months reached $12.79 billion, compared with $13.26 billion of sales for the full year in 2013," JLL's Australian head of office investments, Rob Sewell said.
"Other significant third quarter investment sales included the largest transaction in the South Sydney market in 2014 with the sale of DEXUS Business Park, Rosebery to Meriton for $190 million in a deal negotiated by JLL."
On the industrial side, sales were up 8 per cent for the quarter and 33 per cent for the first nine months of the year. Matt Haddon, CBRE's regional director for industrial and logistics said buyer demand has been more than deep enough to absorb increased transaction volumes. "This trend will accelerate into the fourth quarter. This will be the quarter that offshore investors regain a meaningful market share of Australian Industrial sales," Mr Haddon said.
JLL's preliminary figures for the first nine months of the year are $18.5 billion, compared to the record $24.1 billion for all of 2013. CBRE's commercial sales for the nine months to September total $15.9 billion, compared with $16.7 billion in 2013.
Fairfax Media Management Pty Limited
Document AFNR000020141001eaa20005m
Mercedes Ruehl
385 words
2 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Commercial property sales are closing in on the record number achieved in 2013, with preliminary figures from real estate groups CBRE and JLL showing volumes have been led by the office and industrial sectors.
Sales jumped compared with last year. CBRE recorded $5.42 billion in sales for the September quarter, a 10 per cent increase on the same period in 2013. JLL preliminary figures show $5.89 billion worth of office, industrial and retail assets change hands, compared with $4.9 billion in 2013. The office sector led the charge. Sales driven by office buildings were up 62 per cent year on year for CBRE.
"The trend for domestic and international capital chasing core office opportunities continues, with many groups lowering their expected total returns," CBRE's head of capital markets and institutional investments Josh Cullen said.
Among the biggest transactions during the quarter were 52 Martin Place in Sydney for $555 million, a half share in Westpac Place in Sydney for $435 million and the CBW Buildings in Melbourne for $608 million.
"For the office sector alone, national volumes for the first nine months reached $12.79 billion, compared with $13.26 billion of sales for the full year in 2013," JLL's Australian head of office investments, Rob Sewell said.
"Other significant third quarter investment sales included the largest transaction in the South Sydney market in 2014 with the sale of DEXUS Business Park, Rosebery to Meriton for $190 million in a deal negotiated by JLL."
On the industrial side, sales were up 8 per cent for the quarter and 33 per cent for the first nine months of the year. Matt Haddon, CBRE's regional director for industrial and logistics said buyer demand has been more than deep enough to absorb increased transaction volumes. "This trend will accelerate into the fourth quarter. This will be the quarter that offshore investors regain a meaningful market share of Australian Industrial sales," Mr Haddon said.
JLL's preliminary figures for the first nine months of the year are $18.5 billion, compared to the record $24.1 billion for all of 2013. CBRE's commercial sales for the nine months to September total $15.9 billion, compared with $16.7 billion in 2013.
Fairfax Media Management Pty Limited
Document AFNR000020141001eaa20005m