MARKET UPDATE Current Mood.

Let’s face it, there is going to be some pain before we regain an upward trend in Commercial Property during 2023.

The metrics have changed on a number of fronts with the most obvious being the cost of finance where interest rates for Commercial Property loans have nearly tripled and are in the 5.50% pa range. Therefore, for every $1,000,000 of debt the interest rate cost has gone from say $20,000 pa to $55,000 pa over the last 6 months. This will cause some stress for Commercial Property owners and how the financial institutions choose to handle loan accounts that mature this year and will be very much driven by a customised view of overall Client financials and cashflow plan. We expect that there will be “markets within markets” this year where some sectors (health, medical, childcare, government, industrial, suburban office and regional) will outperform and others may struggle (retail strips, apartment development and CBD). History has always shown that when the financial metrics change quickly, there is going to be very good buying opportunities for those that choose to be brave and see the longer term rewards whilst navigating the “choppy” short term environment.

Furthermore, our vacancy rate has dropped from a peak of 119 tenancies in 2021 to now 49 tenancies from our entire management portfolio – this again reflects increasing business confidence and our Leasing Team implementing bespoke marketing and strategies to secure the right tenant.

The Aston Pulse

Whatever 2023 brings forth, our Team is well equipped and ready to assist you in all aspects – Property Management, Leasing and Sales – so reach out anytime. Best wishes for the year ahead. Kind Regards,

GRUZEWSKI EXECUTIVE DIRECTOR - HEAD OF AGENCY

MARC HAYDEN EXECUTIVE DIRECTOR - HEAD OF PROPERTY MANAGEMENT

FRED NUCARA

MANAGING DIRECTOR

Our Aston Commercial Dna

Different

We do our homework, identify unique strategies and make informed recommendations that are often not aligned to traditional thought

Diverse

Over 25 team members offering individual bespoke opinions about how we can deliver more to our Clients

DIRECT

Direct, open and honest communication based on our knowledge and 80 plus years combined experience

OUR MARKETING & SUPPORT DNA

Elite

Our standards are nothing but ‘elite’. Whether it is marketing or administration processes, we insist on delivering the highest possible quality and efficient customised procedures. Elite ensures we stand out from the norm and integrate a seamless experience

Execeptional Extraordinary

The real focus is to ensure that we provide unique outcomes that are shared with our service providers. Collectively we aim to provide an experience that is ”not typical” but aligned to a strategy that achieves a desired Client outcome

Often “extraordinary” is used loosely. We have chosen to live, eat and breathe being extraordinary. For us it’s about going over and above so that we all have a remarkable and memorable experience

Suburb Profile

Located in Melbourne’s inner north, Carlton is a small mixed-use suburb on the edge of the CBD. Due to it’s close proximity to several universities including Melbourne University and RMIT, it has a high student population. A number of hospitals are located within and around Carlton, making it a hub for health care. An abundant offering of old-school trattorias and casual pizzerias has earned Carlton it’s title of “Little Italy”.