Research

The reduction of staff in our CBDs has impacted other segments of the market, such as retail and car parking.

Over the last ten years we have seen a growing number of buyers invest in commercial assets. This was highlighted in particular during COVID-19 where interest rates hit rock bottom and investors looked to diversify their portfolios.

The office market has been through a tough few years, with COVID-19 changing the way tenants interact with offices, resulting in changing income profiles and demand for investment.

After a robust 2020-2022 period where sales volumes peaked for investment grade stock, the rising interest rates have put a dampener on ongoing investment across all property types.

Growing interest rates and uncertainty surrounding their movement, together with high inflation causing investors to be more considered in their property decision making, while some buyers have completely retreated from the marketplace.

After reaching a new high in sales volume in 2022 of $1.07 billion, service station investment has taken a hit in 2023 recording just $66.8 million in the first five months of the year.

With interest rates still moving upward, commercial investment activity continues to take a hit.

The industrial asset class has been the stand out performer in the commercial market over the last few years.

Over the last few years we have seen a growing volume of buyers invest across regional markets of Australia.

The Australian Bureau of Statistics released its dwelling approval numbers last week with stand out monthly results for the non-residential building approvals.

With the ongoing difficulty in attracting staff back into the office, it hasn’t just been employers adding perks to the work day, with office owners continuing to ramp up their offerings to occupiers.

A combination of rapidly rising interest rates, difficulty in obtaining finance and sentiment shifts has seen both vendors and purchasers reset and look to delay property decisions until greater economic and market certainty arrives.