The rise of industrial property from online retail and logistics
Renting industrial space is as difficult as getting an apartment to live in. No wonder the once forgotten sector is now turning heads.
Why has industrial property boomed?
The obvious answer is the flourishing of online commerce and the subsequent boom in logistics.
Put simply, industrial property is the back-end of the digital economy.
While investors in office property are on red alert for growing problems among unlisted property trusts, the previously sleepy zone of industrial space is getting all the attention.
But there is a lot more that explains the 1 per cent vacancy rates in the industrial parks in the outer suburbs of Australia.
Tight planning laws, a surge in demand and a minimum of supply means this asset class should stay strong for years to come.
Boutique funds in this area are returning more than 30 per cent per annum. In contrast, property investors in the wider market are happy to see anything close to 10 per cent.
Who is the guest?
Charlie Buxton CEO of the Cadence Property Group
Why him?
Buxton is a property developer and fund manager who works on the ground in the industrial property sector.
What are the topics?
HOW online retail changed the shape of the property market
THE reason industrial property is outperforming
HOW deep are the problems in the office sector?
INVESTMENT choices in property trusts
Question of the week
Regular listener Adam asks: “I am very interested to hear your thoughts on the state of Victoria. The government there has squandered the post-GFC boom and will face the next challenge burdened by huge debt.
Your paper and others observe that generations of Victorians will be paying for this. Please explain how this plays out in real terms for business.”
Questions always welcome to the podcast, via themoneypuzzle@theaustralian.com.au
Are financial advisers worth the money?
Financial advisers are a steady hand when markets wobble. But do they deliver on the returns front? New data shows that it depends on a few key things.
To fix or not to fix, the answer is not what you think
Anyone with a mortgage or about to get one might think variable rates offer the best chance to take advantage of an expected falling cash rate. But fixing now might be a smarter option.