Monthly Musings.

Thoughts on the Real Estate market and beyond.

What does the data tell us?

Aug 02 2021

Recently we went through the exercise of selling a residential home. It was a GJ Gardner home in a desirable South Auckland suburb. Nothing particularly special about it – certainly not a Herne Bay mansion.

Although we are versed in the process of buying and selling industrial real estate, we don’t transact residential on a regular basis.…


It’s not the BIG that eat the SMALL… it’s the FAST that eat the SLOW

Aug 02 2021

One of the books in the Expedio library that is somewhat dog-eared from use, is “It’s not the BIG that eat the SMALL… it’s the FAST that eat the SLOW” by Jason Jennings and Laurence Haughton. It was published back in 2000, but retains it’s relevance today. Perhaps even more so. It is no secret that speed is one of the most competitive tools in contemporary…


How Valued is Green?

Jul 02 2021

Increasingly we see the benefits of “green” buildings being hailed. Whilst mostly new office buildings, there are also examples of green aspects of industrial buildings lauded in the press.

Is this trend just virtue signalling? Or is it something real that we should be incorporating into the way we do business?

When a major oil company…


Commissions

Jul 02 2021

It is an ongoing discussion as to what constitutes a “fair” or reasonable commission.

There are times when an agent works on a deal only for it to come to nothing. Or an agent has to work long, hard and inventively to get a deal across the line. And then there are times when agents almost accidentally manage to conclude a deal.

Or,…


Let's value what matters

Jun 02 2021

The current prevailing methodology for valuing industrial buildings is to put a price on every square metre of office, and every square metre of warehouse/factory, with weightings of these prices determined by such factors as quality of the space, stud height, suburb etc. Then additional charges are added for car parks and yard space.

All…


Are commissions upside down?

Jun 02 2021

Real estate marketers are constantly telling us that the agent works for the vendor, and will get the vendor the best price. The cynical might well correct that advertising hype by saying that the reality is that the agent works for themselves. Most agents work on a sales commission basis, with the conventional commission structure being based on…


Scourge or Saviour: The return of inflation

Jun 02 2021

The lack of inflation in our economy of recent times has been something of a scourge for many. Those reliant on fixed incomes or rental incomes from industrial property have seen their incomes plummet, and money as a tool in itself for generating income, almost worthless with many bank deposit rates under 1%. But all that may be coming to an end…


Market Comment June 2021

Jun 02 2021

The pre-eminent sentiment in the market currently revolves around the lack of stock. With so little stock available, many potential vendors rightly will not release properties for sale when they cannot find an alternative investment opportunity. At Expedio our sentiment is certainly that agents who find us opportunities to purchase should have the…


The Myths of the Media

May 02 2021

Joseph Goebbels said that if you repeat a lie often enough it becomes the truth.

And for some time now, and magnified by Covid, we have seen that happen in our media with regard to the concept of working from home – or “WFH” as the media likes to call it. Possibly because there is an aversion to words with more than 5 letters, or more likely…


The Productivity Problem

May 02 2021

The Productivity Council recently issued a report saying, in brief, that the productivity of leading companies in New Zealand is on average less than half that found in the top companies in other small advanced economies.

And we can quite believe them!  And that conclusion is not simply based on the amount of wasted time spent decorating…


May 2021 Comment in Brief

May 02 2021

Taupo Marketplace: Over the past year Expedio has been accumulating a small portfolio of properties in Taupo. It’s a very different industrial proposition from Auckland, with tenants taking longer to secure, but yields are substantially higher. We will be shortly be releasing some of these investment opportunities at yields between…


Wherefore art thou Marketplace?

Apr 02 2021

In Shakespeare’s Romeo and Juliet, Juliet asks “Wherefore art thou Romeo?“, and later in the same speech laments “Sober or drunk, still fooles, that shall know nothing”.

There are times when we feel almost as confused in our predictions of the future direction of the industrial property market. Trying to determine where the market is heading…