Commercial Collection Q4 2024

Welcome to the latest edition of the Commercial Collection, showcasing the region’s best commercial property opportunities.

As we head into the end of the year, we are seeing an influx of properties coming onto the market. With stock levels rising and an abundance of opportunities available, the market pace is lifting accordingly to meet these levels.

Commercial Collective has advanced its strategic growth in the Maitland area with the acquisition of Starr Partners Maitland on November 1st. As the only independent commercial agency with a dedicated office in Maitland, we are excited to enhance our presence and continue providing exceptional support to our clients in the region.

The industrial sector continues to be the top performer in the market with the scarcity of industrial land availability adding to the demand. According to the Property Council of Australia, the industrial sector has seen a stabilisation of returns a stark contrast to the 23% growth recorded two years prior. This is off the back of a decline in values in the sector which brings it into alignment with the current market. Positively the steadying of the market helps to better forecast returns for this sector into the future.

As per the larger Sydney CBD Market, we too have seen the office sector’s slowdown across all markets and grades. A- Grade offices continue to perform better than the lower-grade counterparts, particularly in the Newcastle market where an influx of new A-Grade premium office stock hit the market in quick succession. This continues to provide downward pressure on the lower-grade office stock which relies heavily on the location of the property, available parking and amenities to provide steady returns. Net absorption of office accommodation continues to increase which points to a reduction in vacancy moving forward. Reduction in incentives will likely follow in time.

Retail’s buoyancy and resilience is proving strong with the sector recording a 2% return in the 2023/24 financial year according to the Australian Property Council. This is in line with the retail trade statistics released by the Australian Bureau of Statistics in August 2024 showing 0.7% month on month growth in the NSW retail trade sector. We are seeing the Newcastle market follow this trend also, providing a clear indicator of the future potential for property returns in the sector.

Overall transaction volumes remain significantly higher compared to the previous 12 months, with the biggest increase coming from within the Commercial sector.

Speak with our sales and leasing team today to learn more about the opportunities in this quarter’s Commercial Collection.