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

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.

Investment advantages

• Typically, industrial & logistics properties are leased to a single tenant who has responsibility for repairs, maintenance and lease expiry make good obligations.
• Relatively low levels of capital expenditure are required during the lease term.
• There are good opportunities for environmental and social governance (ESG) initiatives.  Both new developments and building improvement projects are taking up energy efficient strategies such as photovoltaic solar systems, rainwater harvesting, zero ozone depleting refrigerant choices, high efficiency air conditioning, time and presence controls and metering.

The following projects represent some of our recent capabilities and expertise within the sector, where we have managed Cost, Risk & Return.

	Target Distribution Centre, Foundation Road Truganina VIC Independent Certifier, Development Monitoring & Quantity Surveying – 62,000m2 Client: ESR/CIP & Charter Hall		Toll Mars Distribution Centre, Midwest Logistics Hub, Truganina VIC Independent Certifier, Development Monitoring, Quantity Surveying & Tax Depreciation Assessment – 45,000m2 Client: Charter Hall
	Uniqlo Distribution Warehouse, Midwest Logistics Hub Truganina VIC Independent Certifier, Development Monitoring, Quantity Surveying & Tax Depreciation Assessment – 35,000m2 Client: Charter Hall		Mainfreight Epping, 107 Gateway Boulevard, Epping VIC Quantity Surveying – 45,000m2 Client: Mainfreight
	Drystone Industrial, Estate Truganina VIC Technical Due Diligence – 44,000m2 Client: GPT		Telstra Data Centre, Clayton VIC Acquisition/Divestment Technical Due Diligence - 3.2 hectare site Client: Telstra / Centuria
	Aldi Distribution Centre Portfolio Acquisition/Divestment Technical Due Diligence – 370,000m2 Client: Aldi / Charter Hall Allianz		99 Sandstone Place, Parkinson QLD Technical Due Diligence – 54,000m2 Client: DWS Group GmbH & Co
	338 Bradman Street, Acacia Ridge QLD Technical Due Diligence – 55,000m2 Client: Mapletree		Lot 30, 247-263 Greens Rd Dandenong South VIC Quantity Surveying & Tax Depreciation Assessment – 16,000m2 Client: Logis Property Investments
	Ceva Logistics, Truganina VIC Independent Certifier, Development Monitoring, Quantity Surveying – 36,000m2 Client: Frasers Property		Salta Properties Portfolio, Dandenong South VIC Quantity Surveying & Tax Depreciation Assessments – 4 industrial warehouses 25,000m2 Client: Salta Properties
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	7 Dursley Road, Yenora NSW Development Monitoring, Quantity Surveying and Tax Depreciation Assessments - 65,000m2 Client: Fife Capital		9-13 Cool Street, Forestville NSW Development Monitoring and Quantity Surveying - 9,000m2 Client: Trumen Corp Pty Ltd
	8 Narabang Way, Belrose NSW Development Monitoring and Quantity Surveying - 4,000m2 Client: Life Property Group		50 Elwell Close, Beresfield NSW Development Monitoring, Quantity Surveying and Tax Depreciation Assessments - 8,000m2 Client: Hobson Holdings Pty Ltd

Please do not hesitate to call any of the people below to discuss your requirements: 

MELBOURNE
Rob Howells, Managing Director |  0437 649 082  |  rhowells@napierblakeley.com
Craig Smith, Director |  0407 371 664  |  csmith@napierblakeley.com
John Mathew, Director  |  0414 559 326  |  jmathew@napierblakeley.com 
Ian Gardner, Associate Director  |  0488 225 569  |  igardner@napierblakeley.com

SYDNEY
Alastair Walker, Director  |  0419 503 289  |  awalker@napierblakeley.com
Peter Hammond, Director  |  0419 980 901  |  phammond@napierblakeley.com
Peter Osborn, Director  |  0439 765 571  |  posborn@napierblakeley.com
Stephen Cooke, Associate Director  |  0409 228 552  |  scooke@napierblakeley.com

BRISBANE
Adam Greene, Associate Director  |  0409 724 395  |  agreene@napierblakeley.com
Paul Cosker, Associate Director  |  0434 400 107  |  pcosker@napierblakeley.com
Gavin Peach, Associate Director  |  0412 225 781  |  gpeach@napierblakeley.com
KY Pih, Associate  |  0408 933 660  |  kpih@napierblakeley.com

PERTH
Graham Rigby, Associate Director  |  0419 847 998  |  grigby@napierblakeley.com 
Jorden Morris, Quantity Surveyor  |  0457 001 545  |  jmorris@napierblakeley.com

Paul’s time at N & B has now formally come to an end and we would like to thank him and also acknowledge what a great asset he has been for Napier & Blakeley over that time.

As Paul often put it, he “put his body on the line” for N & B and we can say with total certainty that never a truer word was spoken, and he met a lot of friends and new clients along the way.

Our succession planning nationally is always ongoing, and the handover to our Queensland team has been exactly that for a number of years, and we are sure you have already dealt with many of our senior people in the Brisbane office.

Our Quantity Surveying team leaders are:

PAUL COSKER - Associate Director…	ADAM GREENE – Associate Director

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Running our Transaction & Asset Advisory   and Due Diligence team is:	And our Property Depreciation and Insurance team is run by:
GAVIN PEACH – Associate Director	KY PIH – Associate

Between these four, there is over 70 years of service with N & B Queensland.

So it’s business as usual and we wish Paul every success and happiness in his future, and testament to him that we have this fantastic team in Brisbane to continue to assist you with your investments and developments going forward.

Please do not hesitate to call any of the people below to discuss your requirements: 

BRISBANE
Adam Greene, Associate Director  |  0409 724 395  |  agreene@napierblakeley.com
Paul Cosker, Associate Director  |  0434 400 107  |  pcosker@napierblakeley.com
Gavin Peach, Associate Director  |  0412 225 781  |  gpeach@napierblakeley.com
KY Pih, Associate  |  0408 933 660  |  kpih@napierblakeley.com

MELBOURNE
Peter Frith, Managing Director  |  0418 733 987  |  pfrith@napierblakeley.com
Craig Smith, Director |  0407 371 664  |  csmith@napierblakeley.com
Rob Howells, National Director |  0437 649 082  |  rhowells@napierblakeley.com
John Mathew, Director  |  0414 559 326  |  jmathew@napierblakeley.com 
Ian Gardner, Associate Director  |  0488 225 569  |  igardner@napierblakeley.com

SYDNEY
Alastair Walker,Managing Director  |  0419 503 289  |  awalker@napierblakeley.com
Peter Hammond, Director  |  0419 980 901  |  phammond@napierblakeley.com
Peter Osborn, Director  |  0439 765 571  |  posborn@napierblakeley.com
Brian Gavahan, Associate Director  |  0414 620 213  |  bgavahan@napierblakeley.com
Stephen Cooke, Associate Director  |  0409 228 552  |  scooke@napierblakeley.com

PERTH
Graham Rigby, Associate Director  |  0419 847 998  |  grigby@napierblakeley.com 
Jorden Morris, Quantity Surveyor  |  0457 001 545  |  jmorris@napierblakeley.com

Did you know

As an example, the Property Council of Australia Guide to Office Building Quality recommends office buildings have Lifecycle Expenditure Forecasts in place as follows:

Over our 35 years in service we have developed extensive experience in the preparation of independent Lifecycle Capital Expenditure Forecasts. We have also amassed technical property and construction cost data which can be used for quick and cost-effective benchmarking.  As part of our service provision we have developed in-house online solutions that generate Lifecycle Capital Expenditure Forecasts from new or existing Asset Registers.

The solution also provides online storage for key documentation such as plans, specifications, operation/maintenance manuals and warranties related to the individual assets or building.  All report data is available for consumption on a client-dedicated website.

If you would like to talk to us further about Lifecycle assessments, or if you have any questions on this topic, please contact us now:

MELBOURNE
Rob Howells, National Director  |  0437 649 082  |  rhowells@napierblakeley.com
Ian Gardner, Associate Director  |  0488 225 569  |  igardner@napierblakeley.com
Coco Williams, Senior Building Consultant  |  0418 348 712  |  cowilliams@napierblakeley.com

SYDNEY
Stephen Cooke, Associate Director  |  0409 228 552  |  scooke@napierblakeley.com

BRISBANE
Gavin Peach, Associate Director  |  0412 225 781  |  gpeach@napierblakeley.com

PERTH
Graham Rigby, Associate Director  |  0419 847 998  |  grigby@napierblakeley.com

Did you know…

And through our further success in negotiating Make Good settlements we have found that most of the errors we see in Make Good assessments by the opposing party relate to the building services.

Napier & Blakeley directly employ building services engineers as part of our Make Good assessment team to provide accurate and defensible cost estimates.

If you would like to talk to us further about Make Good assessments, or if you have any questions on this topic, please contact:

NATIONAL Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	BRISBANE Gavin Peach Associate Director o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com
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MELBOURNE Ian Gardner Associate Director o.  03 9915 6300 m. 0488 225 569 e.  igardner@napierblakeley.com	SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552 e.  scooke@napierblakeley.com
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MELBOURNE Coco Williams Senior Building Consultant o.  03 9915 6300 m. 0418 348 712 e.  cowilliams@napierblakeley.com	PERTH Graham Rigby Associate Director o.  08 6244 1877 m. 0419 847 998 e.  grigby@napierblakeley.com
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Did you know that your building contains a very significant amount of IT and communications infrastructure that needs frequent updating and renewal?

And did you know that there are significant cost implications for building owners associated with the introduction of the 5G network?  

While the capital cost of existing infrastructure has typically been borne by the telecommunications provider, capital works required to make a building “5G ready” will rest with the building owner, who is frequently not aware of the requirements and has not adequately budgeted for them.

To assist in managing and budgeting for these imminent and ultimately unavoidable capital upgrades, we can provide:

• A risk awareness review on IT systems, cyber security etc  for BMS, Fire Detection, Access Control, CCTV, Wi-Fi services, Energy metering;
• A review of existing mobile telecommunications installations to determine required upgrades to enable 5G readiness;
• Advice relating to removal of redundant infrastructure (and where possible provide advice as to who is responsible for this work);
• A lifecycle review to remove, replace and upgrade infrastructure, or alternatively prepare an upgrade pathway for upgrade works over a 3 to 5 year period;
• Preparation of a tax depreciation assessment for the upgrade works.

We have in house engineers who have significant experience in this field.  If you would like further information, or would like us to assess your properties contact Ian Gardner below or anyone else in our Transaction & Asset Advisory team:

NATIONAL Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	MELBOURNE Ian Gardner Associate Director o.  03 9915 6300 m. 0488 225 569 e.  igardner@napierblakeley.com
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BRISBANE Gavin Peach Associate Director o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com	SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552 e.  scooke@napierblakeley.com

MELBOURNE Coco Williams Senior Building Consultant o.  03 9915 6300 m. 0418 348 712  e.  cowilliams@napierblakeley.com	PERTH Graham Rigby Associate Director o.  03 9915 6300 m. 0419 847 998                         e.  grigby@napierblakeley.com .

That building owners are required to hold copies of all regulatory documentation? 

And did you know that building owners in Victoria must provide regulatory compliance documentation histories for buildings to Building Surveyors within 7 days of request, but these documents have often never been sighted (or have been lost) by building owners and / or their Agents?

While this is a common issue, failure to hold regulatory documentation and poor record keeping typically results in significant non-compliances associated with both ongoing regulatory maintenance and ‘Management in Use’ requirements.  The longer these non-compliances are left unattended, the more expensive they are to fix, and the further non-compliant they become.

If non compliance is linked to injury, then the building owner is seriously exposed to potential criminal investigation.

Now is a good time to catch up on this housekeeping.

To assist in addressing this issue, we provide State / Territory based:

• Desk top reviews of available regulatory documentation;

• Statutory documentation searches through relevant authorities;

• Gap analyses of available documentation and current maintenance and management regimes, together with recommended assessments and / or upgrades with the view to meeting compliance requirements;

• A database document management solution, purpose built for building owners and managers, with simple operational and search functions.

If you would like further information, or would like us to assess your properties, please contact us now:

NATIONAL Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	BRISBANE Gavin Peach Associate Director o.  07 3221 8255                        m. 0412 225 781 e.  gpeach@napierblakeley.com

MELBOURNE Ian Gardner Associate Director o.  03 9915 6300 m. 0488 225 569 e.  igardner@napierblakeley.com	SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552 e.  scooke@napierblakeley.com
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MELBOURNE Coco Williams Senior Building Consultant o.  03 9915 6300 m. 0418 348 712  e.  cowilliams@napierblakeley.com	PERTH Graham Rigby Associate Director o.  03 9915 6300 m. 0419 847 998                         e.  grigby@napierblakeley.com

Did you know that tenant fitouts and other work can significantly impact on the level of performance and compliance of your building? 

Tenancy Fitout Guidelines can be used to streamline and control fitout works ensuring clarity of requirements and expectations for incoming and exiting tenants.

All too often we carry out assessments on properties for owners, or prospective owners, and discover that tenants have installed new or additional fitout works, with limited to no oversight by the building owner and / or their agent.

Examples of recurring problems we find with tenant fitouts:

• They are carried out with assistance of lease incentives; but works are incomplete or defective;
• They compromise the capacity of base building services to provide adequate conditions, serviceability and compliance;
• They compromise adjacent tenancies where services are shared;
• They compromise essential services (fire protection, smoke exhaust, evacuation systems, fire ratings and penetrations);
• They cause changes to essential services that are undocumented, are not commissioned correctly and do not provide the required baseline information for ongoing regulatory maintenance;
• They cause unapproved removal of base building assets;
• They are incorrectly certified, and / or have incomplete permits issued.  This is a particularly prevalent currently in Victoria.

In instances where fitout works are carried out with required permits, there are still many issues that can arise, that could be avoided through the provision and policing of a detailed Fitout Guideline.

We have staff who are experienced in preparing Fitout Guidelines, and associated management and compliance reviews.

If you require further information, or would like assistance in preparing a Fitout Guideline, please contact us now:

NATIONAL Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	BRISBANE Gavin Peach Associate Director o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com
MELBOURNE Ian Gardner Associate Director o.  03 9915 6300 m. 0488 225 569 e.  igardner@napierblakeley.com	SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552  e.  scooke@napierblakeley.com
MELBOURNE Coco Williams Senior Building Consultant o.  03 9915 6300 m. 0418 348 712   e.  cowilliams@napierblakeley.com	PERTH Graham Rigby Associate Director o.  08 6244 1877 m. 0419 847 998 e.  grigby@napierblakeley.com

Did you know… that inspections during the Defects Liability Period (DLP) are not mandatory?

Defects that occur to your assets during DLP can negatively impact performance and the level of compliance.

Defects commonly traverse building structure and cladding, fire protection systems, waterproofing, as well as vital life-safety systems.

Engaging an independent consultant to assess construction defects prior to and during the DLP provides owners with the facts needed to address with their builders before the DLP ends.

Napier & Blakeley have staff with extensive experience in defects reporting, please contact any of the following:

NATIONAL Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	BRISBANE Gavin Peach Associate Director o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com
MELBOURNE Ian Gardner Associate Director o.  03 9915 6300 m. 0488 225 569 e.  igardner@napierblakeley.com	SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552  e.  scooke@napierblakeley.com
MELBOURNE Coco Williams Senior Building Consultant o.  03 9915 6300 m. 0418 348 712   e.  cowilliams@napierblakeley.com	PERTH Graham Rigby Associate Director o.  08 6244 1877 m. 0419 847 998 e.  grigby@napierblakeley.com

Either way, Capital Expenditure will still be required and Napier & Blakeley can assist in its quantification, importance, relevance and timing, depending on your plans.

Alternatively, and coming from the other direction, we can work with you on developing your capex profiles, which may assist you in making your plans.  Together, we then might fine-tune the timing and the scope of the forecast works so it all fits together nicely.

Some Plans that come to mind:

Sale Ready: if you have decided to bring forward the sale of a building, bring us in. We can assess what needs to be done to your buildings in readiness.  Napier & Blakeley have a global recognition and acceptance in the provision of Vendor Technical Due Diligence.

Long term hold: with the potential short to medium term impact on valuations, or perhaps extended lease terms, you may decide to hold the property for longer than first planned.  Future capex should be assessed to reflect this extended period, so that expenditure is allocated to the right things and at the right time.

Take advantage of low occupation: a half-full building provides a great opportunity to upgrade base building works that would normally be disruptive to the quiet enjoyment of occupants.  Such items might include service riser infrastructure, 5G readiness, or mechanical and lighting to the tenancy floors.

Repositioning: maintaining the attractiveness of your buildings to tenants may become more important coming out of the other side of this situation.  The viability of physical and technological improvements can be assessed and improvements in performance, climate resilience and occupant experience help to reposition the property.

Critical: underlying all of this and forever on going, no matter the level of occupancy, the building still needs to be operationally functional and compliant, with systems checked and reported on.

Napier & Blakeley

Over 35 years of independent property and development advisory Napier & Blakeley have amassed building intelligence and cost data from all property types across Australia.  This puts you in the fortunate position to be able to access quick and accurate benchmarking, together with the experience required to prepare and review capex plans in line with your strategy.

With us, you will have the certainty and peace of mind with the decisions you make on Cost, Risk and Return.

Through a single point of contact, if you wish, you will have access to:

• Building Consultants, Chartered Surveyors and Building Services Engineers;
• Built Environment Consultants and Sustainability professionals;
• Quantity Surveyors and;
• Tax Depreciation Surveyors.

Contact us now:

NATIONAL Rob Howells National Director o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	BRISBANE Gavin Peach Associate Director o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com .

MELBOURNE Ian Gardner Associate Director o.  03 9915 6300 m. 0488 225 569 e.  igardner@napierblakeley.com	SYDNEY Stephen Cooke Associate Director o.  02 9299 1899 m. 0409 228 552 e.  scooke@napierblakeley.com
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PERTH Graham Rigby Associate Director o.  03 9915 6300 m. 0419 847 998 e.  grigby@napierblakeley.com	SYDNEY Alastair Walker Managing Director o.  02 9299 1899 m. 0419 503 289 e.  awalker@napierblakeley.com