New entrants have reasons to be excited
The following article is written by Dino Pacella of Marketplace Finance.
With Australia’s commercial and retail property market being one of the most impacted sectors through the COVID-19 pandemic, the changes experienced, which will be both temporary and permanent, have provided new and exciting opportunities. That’s why Marketplace Finance head of third party relationships, Dino Pacella, sees this as an opportunity for new entrants into the market.
We continue to see investors who wish to dig into so-called low-risk commercial property with good income producing results versus the high-risk high reward investor. With the investor spectrum coming into a new, brighter sphere, especially through “pandemic proven” businesses such as essential retailers and medical facilities, these are producing stronger demands for a more diverse but targeted range of assets.
Our regional areas across Australia are now starting to experience demand like never before.
With population growth across regional Australia on the rise, the need for commercial infrastructure, like new supermarkets and retail stores, are required as an essential part of supporting the regional economy, which goes back to the point above on investors looking at a more targeted asset range - and this includes geographic location.
Record low interest rates have been, and will continue to be, a strong level with investors looking at investment opportunities across the commercial sector. The ability to raise cheap capital has attracted many new businesses into this arena and the ability to have a powerful third party financier guide and structure a transaction from idea phase to settlement funding is critical - this is where commercial broking is experiencing its rise and we will continue to see the trend on an upward trajectory.
Investment volumes are predicted to increase in 2022 as we see investors, new and experienced, with cash to spare as people emerge from closed borders and lockdowns.
2022 is not all risk-free, but with a country that is removing itself from the COVID treadmill and is now on a forward motion to economic recovery, the signs are bright for the Australian commercial and retail market.
