Commercial real estate performance analysis of Australia and New Zealand

Abstract

In this paper, we analyse the performance of commercial real estate market of Australia and New Zealand. The comparative analysis spans after the global financial crisis (GFC) period from 2008-2018. Data is collected using Royal Institution of Chartered Surveyors (RICS) Global Commercial Property Monitor (GCPM) questionnaire survey which is distributed to respondents every quarter. The findings highlight that during the past few years, respondents’ sentiments remain positive for supply and demand of commercial property in New Zealand but varied in Australia. Foreign investment enquiries also varied in both countries and across all segments i.e. office, industrial and retail. There is a negative perception about future rent expectations in the retail sector in both countries. New development starts were mainly seen for office and industrial properties in New Zealand. Meanwhile, landlord inducements increased for retail sector, with a rent-free period continuing to be the most popular type of incentive offered in both Australia and New Zealand.