Research

The appetite by the private investor sector for alternative commercial property investments saw service stations as the number one pick for many years, notably prior to COVID-19.

The commercial property market has had some mixed fortunes over the last few years, but with talk across the economy suggesting two or three reductions this year, sentiment has lifted and enquiry levels across most markets have rebounded.

As the cost of finance increases the spotlight has been put on the industrial asset class, yields, and what this means for land and capital values

Over the last few years coastal office markets, in particular Gold Coast and Sunshine Coast, saw a strong uplift in occupier demand while the rest of the nation battled with work from home pressures and reducing their office footprint.

Despite rising interest rates and an overall decline in retail trading, occupancy in the retail sector has improved over the last 12 months.

In the current environment, office assets are doing it tough.

The Australian tourism industry is getting a jolt with a number of international superstars and sporting events making their way down under.

Optimism surrounding returning to work has been squashed after the results of the Property Council of Australia’s office market report last week.

After a quiet 2023, with many vendors unable to accept the new levels of yield, 2024 has commenced with a flurry of retail sales at refreshed yield levels which may signal a revitalisation of activity for the asset class.

After two years of transaction declines, what is the way forward for the commercial market?

The broader commercial property market has had some difficulties this year with reduced volumes and rising finance costs resulting in upward pressure in yields. While these pressures will remain for much of 2024, opportunities will emerge.

After a challenging 2023, with interest rate increases hampering investment activity affecting values, the outlook for 2024 will continue to be difficult.