Latest CBRE Market View (Office/Retail/Industrial)

[underground]

as per title, it was released a couple weeks ago and is based on 1st quarter 08

Download From: http://investments.net.nz/Auckland1q08.pdf

feel free to comment or post your opnion below.

[Arbitrage]

Thanks for your posting. Do you know what the indicative yields based on?

[underground]

i believe its based on net market rentals of commercial/industrial from a mixture of public and 'private' sources

i wouldnt be too skeptical of the figures, these guys seem to know their stuff and have a dedicated research department to collate the data. data seems around what i would have expected

[Arbitrage]

Not sceptical at all. Just interested about how yields are known as a lot of rents are commercially sensitive, and they are also set for periods longer than 12 months.

I guess at the time of sale of occupied buildings the level of rent is revealed. If you aggregate enough of these, a picture of the likely yields can be determined.

[Steve]

Not sceptical at all. Just interested about how yields are known as a lot of rents are commercially sensitive, and they are also set for periods longer than 12 months.

I guess at the time of sale of occupied buildings the level of rent is revealed. If you aggregate enough of these, a picture of the likely yields can be determined.

That would be a good assumption...

[underground]

QV send out a rental return form every so often of which tenants are legally obliged to disclose the rental they pay. im sure that data is made available to purchase in some way to others in the industry.

[Arbitrage]

Another way is to go into the commercial rental section of trademe and record advertised commercial rents for areas you are interested in. Again, while not accurately showing the final negotiated rents, an aggregate of enough of these can give a good indication of the rents per square metre expected in various locations. It is pretty simple and not too time consuming if you set up a spreadsheet to do the calculations (including subtracting the value of the carpark rentals from the floor rental). If you set up trademe to email any new listings in particular areas, this reduces search time too.

I am surprised there hasn't been more discussion about commercial property investment here as it is a great way to build financial independence.

[Steve]

I am surprised there hasn't been more discussion about commercial property investment here as it is a great way to build financial independence.

Long-term, commercial has shown itself to be a better investment than residential.

Perhaps we could use this as a commercial thread?...

[Kees]

I have one of these at the moment its called a commercial rental schedule they wan't to know everything on these forms so that they can just sit in their office and increase your rates and evaluate all the information get their % and come up with pie in the sky
valuations.
I have a distinct hatred of filling these out now if they paid me for the info like they are getting paid I might change my mind but until then QV can wait.

[Arbitrage]

Despite having to fill them in with commercially sensitive information, it will be interesting when the valuations on the basis of this information are sent out in the next few months. It is very difficult to find good data on commercial property rents otherwise.