What is Compelling Entry Pricing? Zeroing in on the Commercial Office Investment Sector
We are starting to see some interesting pricing opportunities and value from a counter-cyclical perspective in the commercial office sector. Log in to your MP Report Professional or MP Report Premium subscription to join in the conversations with Toby Lewis, Founder and Managing Director of Marquette Properties.
Question 16
MP: If you are entering the commercial office investment sector now, what property attributes are you focused on, and what sort of pricing or value range?
Toby: Location, land size, multiple exit opportunities/strategies, acquisition cost relative to land/replacement cost, ongoing income. We are targeting prime and irreplaceable assets in the core of the Brisbane/Sydney CBD’s – be it office, retail, or selected specialty assets. Pricing has come off 10-30% from the 2021 highs so we see this as great value given the assets and the underlying leases remain the same.
Question 17
MP: Where do you see the most risk in the commercial office investment sector?
Toby: Sub-prime quality and/or non-CBD/suburban products will continue to see the pressure of changing demand dynamics and the effects of the flight to quality.
Question 18
MP: Where do you see the most opportunity for investment value in the commercial office sector?
Toby: Semi-distressed and/or ‘special situations’ where sellers are being driven to sell assets because of issues unrelated to the quality of the asset itself.
TO CONTINUE READING, LOG IN OR SUBSCRIBE TO THE MP REPORT PROFESSIONAL OR PREMIUM SUBSCRIPTION.*
*MP Report Premium is available to Wholesale Investors only.
MP REPORT MEMBERSHIP
More Power to You as the Investor with an MP Report Professional Subscription.
We welcome you into the fold with Australia's most informed, experienced and successful investors so that you can be more deeply educated and empowered in your decision-making concerning your property investment exposure.
Via your MP Report Membership you will have access to:
The Property Investment Podcast: Long-form video podcast episodes, excavating to the core of value and risk thematics in various property sectors with the most brilliant minds in real estate.
The View: Long-form written papers that include quantitative data points from Australia’s leading investment fund managers with detailed and deeply educated views on risk and value in the investment grade real estate sectors, and a focus on risk mitigation and mispriced value thematics.
Q&A: Use the Question and Answer section to ask any questions you may have about various property sectors and to the Managers or Contributors presenting their view.
Summarised Deal Analysis Papers: Get a practical understanding of the deal pricing, capital attributes, economics, and property fundamentals that we look for in a deal via our detailed deal analysis papers. A short summary is available via the MP Report Professional. Upgrade to the MP Report Premium for the long-form detailed deal analysis papers, available to wholesale investors only.
High-Quality Investment Deal Flow: Upgrade to the MP Report Premium to access the MP Funds Management co-investment deal flow as well as deals we support with other leading fund managers. Available to wholesale investors only.
Intimate Invitation-Only Panel Discussions and Investor Events: Upgrade to the MP Report Premium to access exclusive invitation-only intimate investor boardroom lunch events, where Australia's top investment specialists and fund managers participate in unfiltered deeply educated, and thought-provoking panel discussions. Available to wholesale investors only via the MP Report Premium Membership.
Note: MP Report Premium is available to Wholesale Investors only.
Already have an account? Log-in.
This communication is not intended to serve as investment advice or an investment recommendation. The content does not take into account your financial objectives, situation or needs. You should do your own research and, if appropriate, obtain independent advice from a suitably licensed professional before making investment decisions.
* Actual investment performance may differ materially from forecast returns.
** Please note that past performance is not a reliable indicator of future performance.
Disclaimer: Each of Golden Goose Capital Pty Ltd, (AR No:1301 947), MP Funds Management Pty Ltd currently (AR No:1301 946) and MP Report Australia Pty Ltd (AR No:1301 948) has been appointed as an authorised representative of Durant Wyot Funds Management Pty Ltd (ABN 41 655 164 864, AFSL No: 537318).