John Gibson talks Real Estate with Sam Kekovich

Episode 15 of Talking Real Estate, John is joined by Sam Kekovich!

To paraphrase Sam Kekovich, “It’s never been harder for Australians to own their own home. Even highly educated young professionals, lawyers, doctors, the captains of tomorrow, they can’t afford their own homes! It’s a terrible tragedy that’s creating a great division in our society between the ‘haves’ and the ‘have nots’. It would be nice if we could arrest that situation somehow’’.

To listen to the full podcast click here.

Rising demand for warehouse space, driven by the growth of e-commerce and onshoring, has sent national industrial vacancy rates tumbling to just 0.8%, making Australia the tightest logistics market in the world. Australia now has the lowest national vacancy rate globally with Sydney at 0.3%.
Interest rate increases will hit different sectors in different ways, the general fallout will be less theatrical than what many of the so-called commentators are saying. Many economists say there will be no prolonged high inflation and no rate hikes next year. The reserve bank will not want to see the property market tank and people go underwater. If there is some pain inflicted, it will be those people coming off fixed interest rates.
A recent property article showed downturns have often been relatively short (12 months or less) when you look back at 1995, 2008, 2011, 2012, 2015, 2019, and 2020.
If you look at past cycles, the downswings have often been less than half of the prior upswings. There has also been a larger percentage increase in prices than the subsequent decline in prices.
A recent article described Brisbane rents as having risen 20 per cent in the past 12 months.

Commercial Tenant Representation

Martin Place, Sydney CBD

Successful lease negotiation of 255sqm Prime A grade commercial office space for our client who are expanding their business.

Commercial Property Buying Services

Industrial Property Guilford

Successful negotiation of an off-market sale price and terms on a freestanding 750sqm factory on 2,000sqm of land for our client.

Residential Property Buying Services

Apartment Caringbah

Successful negotiation of this off-market 2-bedroom apartment for an investor client. The property leased quickly above expectations.

Brief:

As the entrusted tenant representative of a large national company, Locate Negotiate were directed to act on behalf of the client in their commercial lease negotiations in Southwestern Sydney. Discussions were around a Stay vs Go analysis where we engaged the wider Sydney market to investigate suitable options in the marketplace.

Our client required premises that consolidated and amalgamated their operations in a centrally located industrial warehouse that would offer expansion potential and flexibility for future growth. Entrusted to deliver on these requirements, we utilised our contacts and knowledge of the Sydney market to highlight existing properties and off-market opportunities that facilitated their requirements.

Outcome:

Locate Negotiate’s market search provided the client with a shortlist of potential properties. On final selection and at the conclusion of all negotiations, our client opted to amalgamate operations and Go to a newly built facility in the Hills District. We effectively negotiated a lower rental rate than other sites they were originally located in, and ensured future rights of expansion for the client.