Commercial Property Management: Financial and Developmental Outlook

This report provides an outlook on the Australian commercial property sector, focusing on the financial and developmental structure from the perspective of Commercial Property Managers (CPMs). It examines the impact of the Global Financial Crisis (GFC) on the sector, noting the varying effects on material providers, construction companies, property developers, and Real Estate Investment Trusts (REITs). The report highlights key lessons learned from the GFC, including the importance of risk management, diversification, and avoiding excessive gearing. It also discusses the current state of falling property prices in Sydney and Melbourne, suggesting that while a crash is unlikely, further price declines are possible. The report concludes with implications for investors, emphasizing the long-term value of commercial properties, the need for cautious investment strategies, and the attractiveness of regions outside of Sydney and Melbourne. Data and methodology involve financial ratio analysis and multiple discriminant analysis to assess industry performance, along with consideration of macroeconomic factors. The report also includes performance analysis of companies, focusing on revenues, net assets, and government stimulus measures.