tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, May 25th, 1:32PM

News

rss
Latest Headlines

Bright spots in commercial outlook

Nearly 60% of commercial property investors think that opportunities lie ahead but they are also believe there are changes in store for the sector.

Friday, June 5th 2020, 6:56PM

by The Landlord

That’s according to a new Colliers International survey* on landlord and tenant sentiment about commercial property in the wake of the Covid-19.

Colliers associate director of research Ian Little says about half the survey’s respondents believe economic conditions will stabilise within a year.

“Many potential purchasers see the year ahead providing new opportunities with 58% of respondents indicating that they would like to make their next acquisition within the year.

“Creating some potential imbalance is that vendors are choosing to delay divestment until the second half of 2021.”

It seems that enthusiasm among purchasers has been boosted due to a belief that values could ease over the short term from the peaks apparent over the latter part of 2019.

Approximately 80% of respondents are picking a decline in values, Little says.

“But some may be disappointed as transactional evidence to date suggests that high-quality properties with premier tenant covenants remain in demand with limited shifts in pricing.”

Despite the comparatively upbeat expectations revealed in the survey, it also shows that the Covid-19 crisis will lead to some noteworthy changes to the sector.

One of those is the probable continuation of the rent relief that came into play during the lockdown.

According to the survey, some 80% of landlords and 55% of tenants confirmed that rental assistance packages had been agreed.

In April, 84% of respondents reported paying at least half of their rent and Colliers expects the May statistics to be similar, with 67% of landlords and 76% of tenants expecting rental payments to be the same as in April.

Little says the easing of lockdown restrictions and a move to level one could also assist as a greater proportion of tenants capturing higher cashflows would enable a resumption of full rental contract payments in the future.

“Smaller companies experiencing ongoing cashflow constraints that have been unable to negotiate what is a ‘fair and reasonable’ amount of rent and outgoings to pay, will now be able to access arbitration services via the government-subsidised scheme announced on 4 June.”

Another change could be a big increase in the number of office workers who make the move to permanently working from home.

Colliers’ director of partnerships, research and communications Chris Dibble says a majority of respondents would prefer a more flexible approach to working remotely, with 77% indicating they would like to work from home for one or two days per week.

“However, this may not necessarily translate into a reduction in office space with changes to hot-desking and appropriate floor space ratios potentially counterbalancing the situation.

“It was also interesting to note that 75% of occupiers indicated that they would retain the same footprint or increase it over the next 12 months.”

The survey also shows that the traditional office setting continues to offer many advantages, Dibble adds.

According to respondents, being able to collaborate with colleagues in person (34%), bumping into co-workers (13%) and the ability to have spontaneous meetings (12%) were rated as key benefits.

Another common view was that working from the office made it easier to separate work and home life balance (19%).

*The survey was conducted between 21 May and 4 June and drew on around 4,000 responses to create the results.

Tags: Colliers commercial property confidence coronavirus Covid-19 investment landlords property investment property management rents tenants

« Concerns over commercial rent dispute plan$75m on offer for new developments »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 20 May 2024 10:01am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com