CapStack

As 2024 comes to a close, we’re filled with gratitude and excitement for what’s ahead. This year has brought its share of challenges and opportunities, and we want to take a moment to say thank you. To our amazing clients: Your trust is the foundation of everything we do and your entrepreneurial spirit and drive inspire us to keep innovating. Thank you for choosing us to handle your transactions—we promise to keep delivering exceptional service and going the extra mile for you in 2025. To our lending partners: We couldn’t do this without you. Your support in settling deals, especially the tricky ones, is what makes success possible. Together, we’ve achieved some incredible outcomes, and we’re excited to build on that next year. To our service partners: From operations teams and tech providers to our colleagues across the property industry—thank you for being part of the CapStack family. Your collaboration helps us drive innovation and stay at the forefront of commercial finance. As we look ahead to 2025, we’re ready to embrace new challenges and seize new opportunities. By strengthening our partnerships, expanding our expertise, and enhancing our service offerings, we’re confident that we’ll continue to deliver exceptional outcomes for our clients. We’re entering 2025 with optimism, energy, and a renewed commitment to excellence. Thank you for being part of our journey. Let’s make 2025 the best one yet—together! #finance #property #lending #cre #propertyfinance #fintech #commercialproperty #commercialrealestate #developmentfinance #industrialproperty #retail #mortgage #proptech #fintech #CommercialFinance #BusinessLending #PropertyInvestment #FinanceExperts #BuildingBusinessTogether

As we approach 2025, we thought it worthwhile to share data from a Knight Frank report titled Australian Horizon 2025, authored by Ben Burston, where they have outlined key predictions for the 2025 commercial property market that team CapStack believe property investors, developers, and SME business owners should consider. Key predictions include: 1. Market Recovery on the Horizon: Core assets have largely repriced and are set to begin recovering in 2025, with Sydney's industrial and CBD office sectors leading the way. 2. Interest Rates to Influence Recovery Strength: The Reserve Bank of Australia's future interest rate decisions (whether they remain neutral, increase or decrease) will play a crucial role in the market's rebound. 3. Investors Ready to Re-enter the Market: After a period of adjustment, investors are prepared to pursue new opportunities, increasing activity across all asset classes. 4. Office Vacancy Rates and Supply Dynamics: High vacancy rates may mask an impending shortage of new office developments, potentially impacting future availability. 5. Industrial Rent Divergence Expected: Variations in supply levels across regions may lead to differing rental performance in the industrial sector. 6. Retail Sector Poised for Revival: Improved asset performance and rising real incomes are driving renewed investor interest in retail properties. 7. Build-to-Rent Sector's Growth Potential: The success of the Build-to-Rent market will depend on policy developments and community acceptance. Partnering with a commercial finance broker can provide tailored insights and access to financing solutions, ensuring you capitalize on these emerging opportunities as part of your ongoing property strategy. As we head into 2025, the commercial property market presents both opportunities and challenges, making it more critical than ever to have the right financial strategy in place. Working with an experienced CapStack commercial broker can be the key to navigating this evolving landscape successfully. CapStack provides in-depth market knowledge and strong lender relationships, enabling us to source and structure optimal finance solutions tailored to your unique needs. Whether you're a property investor, developer, or SME business owner, their expertise ensures you stay agile and well-positioned to seize emerging opportunities while mitigating risks. Partnering with a broker isn't just about securing funding—it's about building a strategic advantage that sets you up for long-term success in a competitive market. Let's talk. #capitalmarkets #cre #commercialproperty #commercialrealestate #finance #commercialfinance #industrial #retail #office #warehouse #investors #buildtorent #propertydeveloper

December 2024: RBA holds rates steady amidst lower inflation. The Reserve Bank of Australia (RBA) has decided to maintain the official cash rate at 4.35% during its last monetary policy meeting of 2024. Despite a decline in headline inflation from its 2022 peak, underlying inflation remains high at 3.5%, above the RBA’s 2.5% target midpoint and the latest forecasts suggest that inflation will not return to the target range until 2026. To add, economic growth has been weak, with only a 0.8% increase over the past year, the slowest outside the COVID-19 pandemic since the early 1990s. Household consumption has been impacted by past declines in disposable income and the current restrictive financial conditions. The labour market remains tight, with a 4.1% unemployment rate in October, up from 3.5% in late 2022, but employment and participation rates remain strong. The RBA remains committed to returning inflation to target, closely monitoring global economic developments, domestic demand, and the labour market. The Board emphasized its determination to achieve price stability and support full employment, despite the uncertainties ahead. The Reserve Bank of Australia’s next meeting is scheduled for February 2025. As we approach 2025, now is the ideal time to evaluate your commercial property investment strategies and ensure your finances are aligned for the opportunities ahead. The market is continually evolving, with trends such as shifting demand for high-quality assets, rising interest in alternative property types, and economic uncertainty creating both challenges and possibilities. Proactive planning is essential to position yourself for success, whether you're targeting new acquisitions, portfolio growth, or repositioning existing assets. Securing tailored and strategic finance solutions is a critical step in this process, helping you act decisively when opportunities arise. Don't wait until the market heats up—begin preparing now to maximize your investment potential in the year ahead. Reach out to the team at CapStack to explore financing options or refine your investment strategy, and to discuss how we can help support your 2025 goals. Let's talk. #CommercialRealEstate #PropertyInvestment #RealEstateFinance #CREInvesting #RealEstateDevelopment #InvestmentStrategy #RealEstateFunding #FinanceSolutions #cre #fintech

Herron Todd White Director Jason Stevens recently released a National Office Overview covering the current state of the office space market. While the Australian office market faced continuing challenges in 2024, with high vacancy rates, subdued rental growth, and cautious investor sentiment shaping the landscape, opportunities remain for savvy investors and developers, particularly in premium-grade spaces. For a breakdown of the market trends and insights into navigating this evolving sector, click the link below to read the full post. At CapStack, we're here to support your commercial property acquisition or development ventures with expertly sourced and structured financing solutions tailored to your needs. Let’s talk!

Rethinking Real Estate: The Evolution of Warehousing and Logistics The logistics and warehousing sector is undergoing a seismic transformation. Surging e-commerce growth has created an unprecedented need for flexible, high-capacity distribution spaces. Advanced technology is driving the rise of automated fulfilment centres, where lean manufacturing principles are reshaping operations. In this fast-moving environment, industrial real estate strategies must evolve to keep pace. The ability to adapt portfolios quickly to changing global demands is no longer optional—it’s critical. Corporate leaders who take a proactive, integrated approach to their logistics real estate can unlock significant opportunities in this ever-shifting landscape. Ready to Future-Proof Your Logistics Investments? As demand for industrial properties continues to rise, securing the right financing to acquire or repurpose industrial property can make all the difference. Contact the expert team at CapStack today to explore tailored solutions for your real estate investment needs. Let's talk. #industrialproperty #property #realestate #cre #commercialproperty #finance #funding #commercialrealestate

Co-Living: What do investors need to know? Recent trends show investors, developers, and fund managers looking to capitalise on the rising demand for medium term accomodation. Much of this investment is focused on Sydney's #coliving sector. A new report by JLL identifies the following reasons for the growth in this sector: 💡 Sydney as a Co-Living Hub: Sydney leads Australia’s co-living market, capturing over 90% of activity due to population growth, urban housing demand, and supportive planning policies. 💡 Global Investment Interest: International players like PGIM Real Estate and Pro-invest Group are investing heavily in Sydney and Brisbane, repurposing older buildings and constructing large-scale co-living portfolios. 💡 Favourable Planning Environment: New South Wales’ government planning guidelines, revised in 2023, have encouraged co-living development, boosting investor confidence. 💡 Rising Demand for Co-Living: Tight rental markets, growing migration, and interest in community-oriented housing drive demand, particularly among students and young professionals. 💡 Investment Strategies: Investors employ value-add and core-plus strategies, focusing on enhancing property value for higher returns rather than traditional yield metrics. Examples of recent Market Activity: ➡️ In early 2024, Sydney-based private developer FREECITY GROUP purchased a Macquarie Park building for $73m and have submitted plans for 505-room co-living accommodation facility. ➡️ In February 2023, Australian co-living operator UKO settled on a $14.7M purchase of a property in Glebe. ➡️ In April 2024, a private investor acquired a co-living development in Surry Hills for $15.5m. 💡 Future Growth Potential: With strong occupancy rates and high rental demand, co-living portfolios are set to expand as more operators enter the market. Considering a move into this space, either as #investor or #developer? Contact the expert commercial property finance team at CapStack to review your options. When it comes to securing and structuring #finance for your business or commercial property acquisitions and projects CapStack is the partner you can trust. With unparalleled expertise, a vast network of #bank and non-bank #lenders, and personalised service, we are committed to your success. Let's talk. The full article can be found here https://lnkd.in/g25gZkhW

Is Your Business Ready for Commercial Property Ownership? For many business owners, owning commercial property is a major milestone. It can signal stability, long-term growth, and even financial security. But making the leap from leasing to ownership isn’t a decision to take lightly. It’s a complex financial and operational commitment that requires careful planning. Fresh on the CapStack blog: 5 essential questions to ask to determine if your business is ready to own commercial property. Thinking about making the leap? Don’t go it alone. Partner with experts who understand the ins and outs of financing and can secure and structure the optimal deal for your business. Let’s talk about how we can make your property ownership journey smooth and successful—reach out to the team at CapStack today! https://lnkd.in/g8c5bRQ4

Will 2025 see commercial property investors shift towards #retail? While the last 18 months have been dominated by "beds and sheds" (living and #logistics assets) there are signs of a pivot towards retail assets. On the CapStack blog we delve into a new report released by Vanessa Rader, Head of Research at the Ray White Group. As always, when considering your next #acquisition, #refinance, or #development project, reach out to the commercial finance experts at CapStack first - consider us your 'in-house' finance team. https://lnkd.in/gzWKDVCa #cre #property #commercialproperty #commercialrealestate #finance #commercialfinance #propertydevelpoment #projectfinance

November 2024: RBA holds rates steady amidst lower inflation. While most eyes were on 🏇 and 🇺🇸 the Reserve Bank of Australia (RBA) met and decided to keep interest rates on hold at 4.35%. This decision comes despite signs of easing inflation and speculations about possible rate cuts. This decision aligns with the expectations of many economists who predicted that the central bank would adopt a “wait and see” approach. The decision marks 12 months since the RBA last raised interest rates by 0.25%. While brokers and borrowers had hoped for a rate cut to ease financial pressures on households, such relief has not yet materialised. The RBA’s reluctance to reduce rates is influenced by the need for more consistent evidence of lower inflation before making further changes to monetary policy. Reach out to the team at CapStack today to discuss your options, or for a no-obligation review of your current debt portfolio. Consider CapStack your in-house finance team. Let's talk. #finance #interestrates #property #cre #capital #realestate

Insurance Premium Funding: Unlock Cash Flow for Business Growth In today’s economic climate, businesses face rising costs, making effective cash flow management critical. Insurance Premium Funding offers a solution by allowing businesses to pay premiums in manageable monthly instalments rather than a single annual payment. Here’s why insurance premium funding could be the solution for smoother operations: ▶️ Flexible Payments: Spread premium payments into manageable monthly instalments to stabilise cash flow. ▶️Reclaim Capital: Redirect funds typically reserved for lump-sum premiums back into growth and daily operations. ▶️Budget Certainty: Fixed rates offer predictable costs, simplifying forecasting and budgeting. ▶️Tax Benefits: Interest and fees may be deductible (this is not financial advice, consult your accountant). ▶️No Collateral Required: Preserve assets (such as property) while keeping coverage secure. While not an exhaustive list, common policy types include: ➡️ Liability (Public/Products, General, Broadform, Environmental) ➡️ Professional Indemnity ➡️ Workers Compensation ➡️ Motor Vehicle (Commercial, Heavy or Fleet) ➡️ Cyber ➡️ Industrial Special Risk ➡️ Marine / Transit ➡️ General Property ➡️ Corporate Travel ➡️ Aviation ➡️ Contract Works ➡️ Directors and Officeholders Unlock cash flow, achieve financial flexibility, and focus on growth. Get in touch with the CapStack Team for a chat about how Insurance Premium Funding can support your business goals. #finance #insurance #insurancepremiums #cre #business #sme #smallbusiness #businessfunding