Page 10 - Wealth Adviser Newsletter March 2025

ISSUE 107
MARCH 2025

• They provide liquidity and diversification across multiple 7. Conclusion: The Path Forward for Clients in
assets. 2025
The Australian commercial property market in 2025
Property Syndicates presents both challenges and opportunities. While some
• Groups of investors pool resources to invest in commer- areas of the market are still adjusting, emerging trends
cial properties. suggest renewed growth, particularly in premium commer-
• Provides access to higher-value assets with lower indi- cial assets.
vidual capital requirements. For investors and business owners, the key takeaways
include:
Exchange-Traded Funds (ETFs) Focused on Real Estate • Understanding market cycles: Recognising when and
• Real estate ETFs track the performance of property-relat- where to invest based on data-driven insights.
ed stocks and REITs. • Assessing risk vs. reward: Ensuring a balanced approach
• They offer a passive, lower-risk approach to commercial between opportunity and risk mitigation.
property investment. • Exploring alternative investment options: Considering
REITs and syndicates for diversified exposure.
6. Risk Management and Due Diligence for
Clients
Key Risks to Consider References
• Economic Conditions: Interest rates, inflation, and 1. Firstlinks. Has Australian Commercial Property Bottomed? Retrieved
broader economic cycles impact property values. from: https://www.firstlinks.com.au/has-australian-commercial-
• Liquidity Constraints: Unlike stocks, selling a commer- property-bottomed
cial property can take time. 2. Property Council of Australia. Office Vacancy Rate Remains Steady as
• Tenant Risk: The financial stability of tenants directly Demand Stays Positive. Retrieved from: https://www.propertycouncil.
affects rental income. com.au/media-releases/office-vacancy-rate-remains-steady-as-
demand-stays-positive
Due Diligence Strategies 3. Smart Property Investment. Premium Commercial Property
• Market Research: Analyse trends and future demand in Set to Surge in 2025—CBRE. Retrieved from: https://www.
specific locations. smartpropertyinvestment.com.au/investor-strategy/26369-premium-
• Financial Assessment: Ensure investment aligns with commercial-property-set-to-surge-in-2025-cbre
financial capacity and risk tolerance. 4. Firstlinks. What Does the Rest of 2025 Hold for Commercial Property?
• Legal Review: Check lease terms, zoning laws, and po- Retrieved from: https://www.firstlinks.com.au/what-does-the-rest-of-
tential liabilities before purchase. 2025-hold-for-commercial-property

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