_Your partner in property - Chris Barker

What does your role entail?

I am a Partner in the Project Management and Building Consultancy team (PMBC), and spend most of my time advising clients on the consultancy side of the business. My role entails working with significant property funds on providing technical advice in relation to acquisitions, capital expenditure forecasts, advisory services at lease expiry and building defect/distressed asset reports. Much of our work is repeat business from long term clients which in turn has led to some significant instructions over the years.

How has COVID-19 impacted your working life?

COVID-19 has impacted our team in various areas, the most notable being the restriction on inspections and the risk associated with these. We noted very early in the pandemic that being able to continue to inspect properties was critical for our business. We therefore implemented measures which could be followed, whilst maintaining the health and safety of all our operatives and clients. This in turn led to specific risk assessments being actioned for each inspection we undertook.

Certain aspects of our work have reduced especially with the Technical Due Diligence advisory services as a result of less transactions being actioned in the market although we have seen an increase in sale and leaseback deals. Despite COVID-19 we have still managed to carry out an array of other advisory services including building condition surveys as part of the sale and lease back deals particularly in the industrial sector, along with make good advice for landlords both in the office and industrial markets where tenants have had to exit their leases.

The Consultancy work has definitely been affected by COVID-19, but through our adaptability we have managed to keep a pipeline of instructions to help minimise the financial impact on the wider business and provide much needed advice to our clients

What is the current market sentiment?

We have seen an increase in sale and lease back deals, which has presented opportunities for both Due Diligence advisory services along with building condition surveys to minimise the risk of the transactions. We are seeing much more positive activity in the industrial market, and rays of light in the retail sector with recent enquiries into shopping centres and development sites. However, State border restrictions remain problematic, as we risk losing the instruction if we are unable to undertake inspections nationally.

What is happening with your existing clients? What business are you doing today?

Most of our business is either on existing assets, or sale and lease back in the industrial sector. Many of our clients are continuing business as usual, although different ways of working and a reduction in working hours is affecting some teams.

What do you think the remainder of the year will be like?

I believe the remainder of 2020 will be challenging. As a result, we will need to adopt alternative ways of thinking to help with client instructions and revenue.

Some of our clients may be making redundancies, so we will need to focus on developing existing and potentially new client relationships. On the flip side this could also result in greater activity of work as our clients may no longer have the internal resources they require, or existing clients taking positions at other companies and creating a wider client base.

As the markets and borders open, I am hopeful we will be in a strong position to continue to provide professional services as required.

Where might there be opportunities?

In my specialist area, I believe there are two areas of growth/opportunity. The first is the already aforementioned industrial sale and lease back deals and the second, potentially more expert witness advice in relation to building defects and distressed assets. I was on a call last week with the NSW Building Commissioner, who is undertaking major legislation reforms, which may create work in the residential defects sector and quality monitoring of developments.

What are your final thoughts?

I think the short-term future will be challenging, but will also bring great opportunity. Given we provide expert advice in a range of areas I am confident that this will become especially relevant and sought after. It is times like these when thinking outside the box, problem solving and keeping in front of clients will be the key to success.

For further information, please contact:

Chris Barker
Partner, Head of Building Consultancy, Australia
+61 2 9036 6856
Chris.Barker@au.knightfrank.com