Why commercial property markets are ripe with investment opportunities
The office property market is due for a comeback in terms of investor interest, according to an industry expert.
Economist and assistant dean at Tulane University Peter Ricchiuti has said in an interview that, globally, commercial real estate markets were not going to experience any further downwards movements.
"I think you've seen the bottom in real estate," said Ricchiuti.
He asserts that lower interest rates will help to underpin the recovery of the real estate market as a whole - and that commercial properties and office rentals could help to lead the way.
One of the main points helping to drive industry interest would be the fact that these kinds of investments traditionally require less upkeep when tenants turnover, but that the main deciding factor in value remained locational advantage.
With the documented boom of resource companies in Australia and the consequent drop in office vacancies in both Perth and Brisbane it is easy to see that potential remains abundant in this industry.
According to Ricchiuti, things can only go up from here, with the economist stating that the commercial property markets was "kind of bumping along the bottom" in terms of current returns.