Technical Due Diligence

Sweet toothed Technical Due Diligence team

Lolly factoryChildhood dreams come true for some of our sweet toothed Technical Due Diligence team.

One of the benefits of our work is getting to understand the operations of other businesses.

Today, a lolly factory!

View this movie : IMG_4367

 

Property Sector Spotlight : Industrial & Logistics

The industrial & logistics property sector became the hot favourite in 2020, outperforming all other property types. 

The rise of e-commerce has driven major brands to expand their footprint and therefore leasing activity.  Vacancy rates are at all-time lows and major development work is underway to meet demand.  Several AREITS are continuing their growth in this asset class and Transaction volumes were up to $3.5 billion in 2020, from $2.3 billion in 2019 – as recently reported.

So, what makes the sector tick?  Here are some attributes and advantages of the sector from our perspective.

Construction and development advantages

  • Over time construction costs in the sector have been less susceptible to escalation than other asset types.  This stability provides greater confidence to Developers when planning their next project.
  • The speed of construction enables Developers to receive a return on their investment earlier than most other forms of development.
  • Tried and tested construction techniques in the sector generally lead to less variations than other forms of construction.
  • There are also tax depreciation benefits available to developers / investors upon project completion. Continue reading