Commercial property prospects to pick up in 2012
While many property markets experienced a mix of good and bad times in 2011, the commercial real ...
While many property markets experienced a mix of good and bad times in 2011, the commercial real estate industry stood out for a number of reasons.
On one hand, the concerns of retailers regarding the growth of internet shopping and its potential to damage their profitability was one that saw a lot of activity, with certain industry leaders calling for official intervention measures to help lessen their burden.
In contrast, the commercial office space market saw a large spurt of growth - mainly in Queensland and Western Australia - fuelled by an increasing number of resource development projects.
On the back of these shifts, secondary service markets began to follow the mining money - with professional providers setting up practices to service the needs of those who had been moved in to the regions.
Yet these activities did not have as much of an impact outside of these geographic regions - with consumers still being sensitive to price and tending to avoid discretionary expenses.
However, now that housing markets have shown signs of a nationwide recovery, commercial property could rise in demand as retailers seek to capitalise on the domestic goods sector.