It’s been a year since Kollosche launched its Commercial arm, led by father-son team Tony and Adam Grbcic. Tony shares the winning formula behind what has been a stellar year.
Which sector are you seeing the greatest demand?
There’s a massive call for freehold properties in all sectors, including Industrial, Offices and Retail. Freehold properties are appealing for their holding income/return as well as the ability to add value and reposition in the future.
Although the yields are quite tight at the moment, these only reflect the initial return. As the market for vacant possession properties has had a sharp increase, much like the residential market, it has lowered the initial return on investments. Over the next few years, as market reviews occur, the returns will become more attractive as many rentals in the current market were negotiated in uncertain market conditions.
Development sites are in high demand from those looking to take advantage over the current shortage of residential unit stock. There’s a big appetite for development sites with Development and Building Approvals in place.
What’s the biggest challenge in the current market?
There is a shortage of premium freehold stock currently available across the board, largely due to low interest rates which allows owners to refinance and reposition themselves rather than sell.
For this reason many tenants have also come back into the market as purchasers because it pays to buy the property rather than rent it.
How has your business changed since you joined Kollosche a year ago?
Our business has had a positive change since joining Kollosche. Along with being afforded the opportunity to market landmark sites and properties across the Gold Coast, we have being able to position ourselves in line with the Kollosche database which generally demands freehold properties or development sites.
The in-house resources and database at Kollosche has assisted with both getting properties to market faster and lowered our time on market for our vendors as the majority of our sales end up going to repeat clientèle within the Kollosche Database.
What are the main factors driving those increases?
The big difference at Kollosche is that the agents collaborate and we work on an open database model. The commercial and residential arms of the business constantly intersect and support one another. This creates lots of referrals and repeat business with Kollosche clients.
High net worth vendors and buyers tend to like to deal with a boutique agency for that specialised service, flexibility and results-driven. Kollosche is an agency that’s very much geared for success. The company provides us with a platform to achieve top results with the full support of an in-house administrations and marketing team.
Which campaign or result are you most proud of this financial year?
The Greenmount Hotel site in Coolangatta was a big campaign for us. We handled more than 160 buyer enquiries over an eight-week period. We secured eight written offers, with a final round of three put forward to the vendor. The $42.3 million result was a big one.
Vendors understand we have the aptitude to handle significant assets and that has led to a string of high-profile listings in recent months.
What’s it like working as a father-son team?
We have a great working relationship and our skills complement one another. We have a high level of trust and exceptional communication skills which is a benefit to the vendors we service. We also have the same goals and push ourselves not only to be better at real estate but to be the best versions of ourselves every day.
What strengths does Adam bring to the table?
With a decade-long career, and armed with a Bachelor of Property and Sustainable Development majoring in Property Valuation at Bond University, Adam has a unique and articulate dialogue compared to your standard commercial agent on the Gold Coast. He views each property through the eyes of a valuer, not just a salesperson. His assessment takes in the true value of the property and the uplift potential. He also understands the town plan back to front, so can advise with confidence on what is possible in terms of uplift. He is recognized by his piers and clients as a Commercial expert and spokesman.
Where do you see the market headed in the next 12 months?
We foresee a continuing shortage of properties on the market which will see high competition amongst the buyers which will compress yields and increase prices on commercial assets.
With the recent Federal Budget confirming significant infrastructure projects across the Gold Coast, including the extension of the Light Rail, there is a lot of interstate investors looking to buy into the Gold Coast with the view of growth over the coming years.
More and more people from interstate see the Gold Coast as the place to live. With the Olympic Games around the corner, we will also begin to experience the flow on effects of that. More high net worth people coming from interstate will bring new business with them and inject cash into our economy. It’s all looking very positive for some time to come.
We have qualified buyers looking to invest, land bank and develop across the Gold Coast and surrounding areas. If you own a commercial property and would like to take advantage of the current market, please contact Adam and Tony