Commercial and industrial real estate market update
With continued interest rate increases firmly in the mind of many, the impact is starting to be felt. As a result, the real estate market remains in a state that has not been seen since prior to COVID-19. Liquidity and cost to service debt is a key driver in positions being adopted across the board. With the macro-economic environment continuing to provide challenges, owners, investors, and purchasers are all seeking new avenues of information to firm their decisions about timing and affordability in the long-term which is leading to a longer lead time for many transactions.
The commercial & industrial property market is often bolstered by a longer-term approach which we continue to see in the Newcastle and Hunter region. Regional markets such as Newcastle are continuing to perform strongly with capital city-based clients now focusing on Newcastle and the Hunter region as viable opportunities for commercial and industrial property investments. Investor confidence within Newcastle and the Hunter remains buoyant with the region being considered an affordable, low risk and lower cost base market, especially when compared to the rest of the nation. Newcastle’s diversified market opportunities through the local industries of coal, manufacturing and health in particular, further cement this sentiment providing one the most stable and resilient economies in Australia. Adding to this, government investment and key infrastructure projects including the Airport upgrade are supporting the local commercial real estate market as a solid investment location.
The industrial sector continues to be a standout, with high demand and low levels of stock availability providing stability in values and yields for prime grade assets. Commercial Collective are seeing many large-scale businesses using this time in the market to upsize, upgrade and find new property opportunities to expand their services.
Our Health, Aged Care and Retirement division is showing ongoing growth in both property opportunities and enquiries, with many investors seeking opportunities possessing recurrent income. This has been highlighted by the number of transactions Commercial Collective have facilitated to qualified buyers.
We continue to see stability in our transactions and enquiries with many of our clients benefitting from consistent yields from their transactions. Our experienced sales and leasing team are always happy to discuss any questions you have about the commercial and industrial market and the opportunities available to you.
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