INDUSTRIAL & COMMERCIAL REAL ESTATE BRISBANE QUEENSLAND AUSTRALIA

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Common problems with property the world over

“It is apparent that fundamental problems faced by Landlords and Property Managers in Australia are consistent with typically western style property markets around the world.” advises Daryl Gallagher-Collins, Manager of Asset Management at Raine & Horne Commercial.

Daryl has just returned from a recent working holiday taking him through four countries and seven major cities including: Los Angeles, Las Vegas, Salt Lake City, Phoenix, Miami, London, Dubai and Hong Kong.

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Issues such as investment performance and reporting, statutory compliance and insurable risks all feature high on the list of concerns for Landlord and Investment Managers. Of particular significance was the interplay between agency (brokerage) and the Asset Management.

In a declining market, Landlords the world over are consistently reporting great benefits in keeping management of their investment properties within agencies who have a strong agency/brokerage team. Property owners who self-manage are moving to agencies for the same reasons. For self-managed investments, the concern is that agencies look after their key clients first. Therefore, they want to be working with companies that continue to produce good returns in increasingly difficult conditions.

As the market tightens it was not just agencies chasing after clients. Clients are chasing after agencies and typically because of the personnel. Meetings with key agencies leaders in the US report that “The property market is hurting.” There was no surprise in that statement however the relationships are no longer one-sided but moving to one of mutual benefit. Also, fees were no longer the primary determinate of who they placed their business with. Low fees did not always represent better returns and higher but competitive fee based firms were producing results in excess of their competitors and better returns to clients.

Confidence in their manager and reporting ability was another critical factor. It was again shown that industry leaders were running the same ‘Intuit’ based MRI software that we currently run.

In summary, in a declining market, Landlords were securing their positions with established Agencies who were strong in brokerage, strong on reporting functionality and had a proven track record.

Based on those meetings, it is clear that Raine & Horne Commercial is uniquely placed to satisfy current and future client needs. We have a well established record of performance in all sectors of the commercial market, we have a strong brokerage team which we have recently grown to deal with new demand, we are one of a very few companies running MRI and offer the associated reporting functionality, and we are well placed to maintain and improve portfolio returns.

Daryl heads-up the Asset Management Services Division at Raine & Horne Commercial and welcomes the opportunity to discuss with you any property related concerns you may have regarding the physical, legal or financial aspects. Discussions are without obligation to proceed to management and for clients who are unsure, we are prepared to offer preliminary advice and a check against current practices. Feel free to contact Daryl on ph (07) 3216 6666 or daryl@RnHcommercial.com.au