National Australian Built Environment Rating System (NABERS) is a sustainability measurement used across the building sector. It’s a simple and reliable way to measure the sustainability of offices, shopping centres, data centres, hotels, and apartments, etc. It’s part of the Australian initiative to achieve the 40% energy productivity target of 2030 and falls under the National Energy Productivity Plan.

What Is a NABERS Rating?

The NABERS system was established as a means to measure what you manage and can save energy by up to 40%. NABERS ratings are an excellent way for investors to measure and understand a building’s environmental performance. It’s also a great tool for owners interested in managing their investment and reducing costs.

It operates on a one to six-star rating for water, waste, energy, and indoor environment. It provides owners with an insight into their building performance versus the performance of similar buildings. NABERS provides a benchmark for success and progress with ratings valid for 12 months. An annual model ensures an accurate representation of a building’s performance.

How Does A NABERS Rating Impact Commercial Property Development?

The purpose of these ratings is to limit the impact new and existing buildings have on the environment. According to Architecture 2030, 40% of global carbon emissions are the result of buildings. They also consume 40% of the energy. If you break it down for the commercial building sector, it’s responsible for 10% of total carbon emissions and 25% of electricity usage (in Australia). The more environmentally friendly a building is, the better it is for everyone.

Its impact on commercial property development is two-fold. First, developing environmentally friendly property provides owners with a competitive edge. It makes it a more attractive prospect to renters, buyers, guests or procurement teams. Second, a NABERS rating is necessary for any commercial space greater than 1,000m2. If you develop larger properties, you have to factor the rating into your decision-making process.

If you want to know more, get in touch with the team here at McGees today.

This Article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. Liability limited by a scheme approved under Professional Standards Legislation.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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What Are Land Lease Communities?

A land lease community gives you the chance to own a building, without buying the land – which is usually the big expense when purchasing property. It’s an opportunity to live in modern housing in desirable locations. More importantly, it’s for a fraction of the price of purchasing a traditional land and house package. It’s a way to supersize your lifestyle while downsizing your living space.

It comes with the services you want, and the facilities you need but without all the work. These facilities include sports facilities, libraries, swimming pools, clubhouses, tennis courts, walking trails, bowling greens, and landscaped gardens. A land lease community provides you with a safe environment, an affordable home, and the freedom to enjoy life.

Is It The Solution To Affordable Housing?

Land lease communities are a more affordable housing choice. You can live in a lovely home, whether you prefer the country, city, or living on the coast. You will find land lease communities throughout some of Queensland’s most beautiful spots. There, you will find a sense of connection with other residents and benefit from a variety of amenities. It’s a relaxed way of living free from financial stress. There’s no need to purchase land; you simply pay a site fee to lease the land where your home sits and gain access to the facilities and services.

According to a report from Downsizing, land lease communities can be up to 70% cheaper than median house prices, and with the stamp duty savings, residents could save thousands. There are no council fees to pay or entry/exit fees. Some pensioners are eligible for the Commonwealth Rental Assistance, which will help pay for the site fees. The demand for safe, well-located housing is high. Given the land shortage in these popular areas and the rise in demand for retirement living, a land lease community could be the solution. If you want to learn more about land lease communities, contact McGees Property today.

This Article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. Liability limited by a scheme approved under Professional Standards Legislation.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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COVID changed the way we operate as a society. It forced businesses to change processes; it reshaped working from home, and the result was big wins or major losses depending on which sector you operate within. Commercial property was no different. Within the sector, there were winners and losers. Which is why it’s a good time to ask the question – what makes a good investment post-COVID?

There were a few areas that continued to perform where everyone else struggled. Fuel stations, childcare centres, and car dealerships are perhaps the largest. Risk-averse investors need to consider future-proof investments. So, those that continued to soar during the pandemic were COVID-resistant investments. As more people hit the roads, essential services, such as fuel stations and car dealerships, were in need. Likewise, essential workers still relied on the services of childcare centres to provide their children with care. In terms of commercial real estate investments, what you want is an essential service that will keep on ticking no matter what is going on in the world.

While retail endeavours were forced to shift their focus to online operations, many of them have walked away from leases and will be unlikely to return. Retail properties should only be viewed as a sound investment if the space can be repurposed for a more suitable long-term renter.

Younger people are interested in city-living that provides them with a base close to their jobs or education. It also ensures easy access to healthcare. So, opting for commercial properties that attract long-term leases, such as fuel stations, is a wise move for any investor.

Office space may still provide yields, but with many businesses choosing to embrace telecommuting, they may also choose to downsize their offices to reflect the change. High-density city office space will always be a safer option than a suburban investment. If a company doesn’t make it, you will have more options for new renters.

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. If there are any issues you would like us to discuss with us arising from this article, please contact us*

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Whether you own a single commercial property or an entire portfolio, its success hinges on effective management. The owner will need to go to great lengths to ensure they meet the needs of both the building and the tenant. It’s a time-consuming prospect. It also requires expertise that not every commercial property owner has. As such, commercial property owners should consider enlisting the services of a property manager. A property manager can provide you with services that increase the efficiency of your operation and will save you time and money.

Many property management companies offer services across a variety of properties, but if you are in the commercial property business, you should look for a company that specialises. There is a major difference between commercial tenancy requirements and residential needs. A commercial property management company will provide you with the level of expertise you need to maximise your investment.

Cash Flow

With specialised software, a property manager ensures rent is charged, collected, and dealt with an easy automated process. This reduces the likelihood of late payments and streamlines the payment process. If there are late payments, the system will automatically levy late fees.

Communication

Every business has unique needs; they’re on different leases and have their own challenges. A property manager can deal with the different responsibilities you agreed with each tenant. It can be challenging for anyone, but especially if you have multiple properties. It’s the same software that improves cash flow that also betters tenant communication. With a single click, an entire building can be notified of maintenance work or building changes. It’s a great way to reduce tenant turnover.

Maintenance

Repairs are inevitable, and a property manager can get in touch with a reliable contractor to take care of the issue immediately. They negotiate rates ahead of time and have trusted contractors that meet all insurance requirements. It’s fast and efficient.

If you want a quality property manager, get in touch with the team at McGees Property today!

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. If there are any issues you would like us to discuss with us arising from this article, please contact us*

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Much like others, our first step was to introduce new advanced technology. While video technology was a large part of that, technology as a whole allowed businesses to make changes to working conditions to provide teams with a more flexible workplace. There is an obvious impact on culture when technology comes into the picture. Everyone had to work harder at maintaining contact with their employees to ensure nobody felt isolated from the team.

Business owners and managers had to find new ways to use technology to monitor performance and provide support to employees. There was also the knock-on effect that working from home had, which impacted commercial property at large. Technology allowed people to stay home, which drove customers to spend bigger in the suburbs due to less movement in city centres. As a result, it changed how people shop for commercial real estate. With many people choosing to invest in suburban real estate over CBD commercial properties.

Like any successful business, we have all found ways to adapt, evolve, and improve throughout COVID. For the businesses still standing, those changes will likely remain in place in large ways. Though people will return to city centres and start visiting retailers again; it may be a slow recovery to normality, which will impact how commercial real estate operates by and large.

Commercial real estate in the suburbs may continue to be a more attractive prospect versus central business district rates for the time being; ultimately, we all find ways to ensure our businesses prosper. And, while things will never return to the way they were pre-March 2020, we will settle into a new normal.

What does 2022 hold? Who knows. But we’re ready to tackle it!

In the meantime, we wish you and your family a very Happy Christmas and a fantastic New Year, and we look forward to working with you in 2022.

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. If there are any issues you would like us to discuss with us arising from this article, please contact us*

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Service stations have thrived over the past 12 months as a business (and an investment). Many people avoided public transport for travel and others filled their tanks to escape to more rural settings. This rise of domestic travel saw fuel stations increase their profits, and it was further heightened by the growth in convenience retail.

Many savvy investors had their eyes on fuel stations before the pandemic hit. Interested investors faced an entry point buy-in of around two million dollars, but it was a sound investment. Historically, fuel stations have longer leases, consistently perform, and are future-proof due to their prime locations. Investors want to invest wisely and in businesses that are lockdown-resistant.

With the rise of electric cars growing, fuel stations are taking steps to soften the risk by integrating charging sites with existing locations. Australia may be behind the rest of the globe in the uptake of electric vehicles, but estimates place the uptake at up to 60% by 2050. No matter the changes expected to transportation, fuel stations offer an essential service. Whether you stop in to fill your petrol tank, charge your electric car, or pick up snacks.

To determine the size of the prize, you need only look at the number of service stations in Australia versus the number of vehicles on the road. There are over 6,500 service stations in Australia. Per capita, Australia has one of the largest vehicle shares globally. There are almost 800 vehicles on the road per 1,000 Austrians. Every state and territory saw an increase in vehicle registrations in 2020, and the expectation for 2021 is much the same.

Essentially, fuel stations provide a strong investment opportunity for wise investors, especially those stations that also provide convenience retailing. If you want to find out more, why not get in touch with our team at McGees Property Brisbane to discuss your investment requirements. We’ll be happy to help!

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. If there are any issues you would like us to discuss with us arising from this article, please contact us*

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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The cost of the average new build has hit its fastest increase in over 20 years – largely due to the increased cost of construction material and labour shortages. The situation with materials was at its worst from March until May, lengthening lead times and seeing prices soar. The worst of it impacts the domestic sector and this is expected to improve no earlier than the first quarter of 2022.

It is steel and timber, the most traded internationally, that have taken the hardest hit. However, there is also a risk with electrical and roofing components. In terms of infrastructure, data centres, industrial units, and distribution centres are at the greatest risk of issues due to the content of materials necessary and the steep rise in prices, as well as the material shortages. This has encouraged competitive bidding in certain sectors as contractors can’t always pass these additional costs onto their clients.

According to our own Ben Leonardi, residential building prices are expected to rise by 7.2% in 2021 and 3.8% in the third quarter of this year, outpacing the Consumer Price Index (CPI) for the same time by 3%. There is a shortage of competent labour and supply chain restrictions to blame for the high costs.

Trade labour shortages are caused by a number of factors, including ongoing insurance repair work due to recent natural disasters, the boom in residential dwelling approvals on the back of the HomeBuilder grant, the surge in renovations from property owners reallocating funds previously set aside for holidays and recreation, and the backlog of commercial construction work caused by COVID-enforced lockdowns of the construction sector.

International shipping delays and shipping container shortages have caused supply chains to be disrupted, and the economic recovery of the United States and parts of Europe has raised the competitiveness for commodities worldwide, particularly steel products and engineered timbers.

There are several risks with construction projects. There are supply chain management issues to prolonged lead-in times and price inflation. Investors should evaluate the risk of any construction project before choosing real estate to invest in. It’s important to consider which materials are at risk and how that could impact the overall project. Early procurement and proactive communication are necessary to keep projects on track.

Ultimately, costs have risen, and the material and labour issues could increase total project costs by up to 4%. It may stretch to an additional 3% for transportation and logistics issues. However, this all depends on the material required for the project and whether materials are coming from overseas.

Where to next? Ben says:

Total residential dwelling approvals peaked in March 2021, but residential building activity will continue for an extended period as the construction of 130,000 approved homes are completed. These record approval numbers will cause material and labour shortfalls and relative cost increases to continue well into 2023, with further delays on bespoke designer homes.

Commercial construction will be similarly affected by labour and material shortages. Tier 1 and larger scale Tier 2 construction firms will be able to procure labour due to existing relationships, CBA conditions, and materials through project procurement forecasting, albeit at a greater cost. Availability of labour and materials will more prominently affect small to medium-sized contractors.

Market volatility will cause contractors to risk-share by eliminating penalties from contracts and guaranteeing tenders for only 14-30 days rather than 90 days. More and more contractors will insist on entering into ECI (Early contractor involvement) agreements to ensure greater initial project design and procurement input. Unfortunately, the cost of these additional measures and cost mark-ups will ultimately be footed by the consumer.

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. If there are any issues you would like us to discuss with us arising from this article, please contact us*

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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Premier Annastacia Palaszczuk said that the economic modelling showed the Games has the potential to drive Queensland’s economic recovery for decades. It promises around $8.1 billion in quantifiable economic benefits for Queensland, with an estimated 100,000 jobs and $4.6 billion in tourism revenue.

Brisbane city’s thriving economy is tipped to balloon from $182 billion to $217 billion as Olympics excitement reaches fever pitch. And the liveability of the region is going to increase exponentially, thanks to the $690 million earmarked for new transport infrastructure and sporting venues.

Queensland is also expecting a higher surge in population growth than other states over the coming decade. And this population growth trend will continue long after the closing ceremony so that by 2042, Brisbane will be the same size Sydney is today.

Queensland’s property industry is set to play a crucial role in the urban construction and legacy building resulting from the Games. The significant investment from the government will in turn unlock a period of precinct development never seen before in Australia.

As the main stadium for both opening and closing ceremonies as well as the athletics, the Gabba will be transformed with a billion-dollar makeover. A second M1 highway between Brisbane and the Gold Coast will be constructed, as will a heavy rail line between the Gold and Sunshine Coasts and an Athletes village at Hamilton Portside. Brisbane will continue to evolve before 2032. A perfect leisure destination with an ideal climate and abundant opportunities for property investment, the Queensland capital is ready to shine brightly beneath the global spotlight.

*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information. If there are any issues you would like us to discuss with us arising from this article, please contact us*

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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