sydney market

I was having a read on the JLL website and i think the general comments where little to no sales in large estates 10m + for Q1 + 2 of 09.

Most activity is from the privite investors 0-3mill, leasing is slow, hard to fill exsisting space.
Saw a presentation by David Rees - Head of JLL research. He said prime yields should bottom out by 2nd quarter 2010.

Secondary yields still softening until early 2011 when he reckons is the time to buy.
Pom a quickie mate

by prime and secondary i presume u are talking about the class of tenant.

eg prime = government or large corprate
second = small, medium bus?
Prime v secondary, to me, is a combination of location, property grade and tenant covenant strength.

Argument is that the sheer weight of money sloshing around in the markets during boom bid up values of secondary properties and narrowed the yield gap with prime = yield compression.

He put up graphs that showed the last couple of boom / bust scenarios - yields in secondary continued to lengthen after prime yields had stabilised until the yield gap reflected an appropriate risk premium. The lag was consistently about 1 year.

This was in commercial and retail sectors - same probably true for industrial.