Raine and Horne Commercial

3 Commercial Insight November 2021 Market Wrap From The Directors Desk Since our last edition of Brisbane Commercial Insight we have continued to see similar trends in the Commercial & Industrial Property Markets. There is limited stock coming onto the market met by high buyer demand resulting in increased sale prices with yield compression. The Leasing market is starting to see similar tightening with stock availability for lease limited as users fine tune their search based on their specific business requirements. This has also resulted in upward pressure on rental rates something that we haven’t seen in many years. Another factor driving higher rental rates is rapidly escalating construction costs meaning developers / investors of new building must command a higher rental to ensure it “stacks up” in today’s environment. As new stock is taken up we are starting see rentals in secondary stock on the rise too. It is our view that the Brisbane market is well placed leading into the remainder of 2021 and early 2022. With borders due to re-open later this year we expect to see not only a continuation but an escalation of the trend of Southern State buyers investing in the Brisbane industrial market as those buyers will be able to come and visit our city and physically inspect those properties they’re interested in. From an investor perspective we have great news to report from our Asset Management Department! Arrears across all asset classes in our portfolio are approaching record lows. This is another great sign that businesses are performing well in our local market. We are continually speaking with other Raine & Horne Commercial Franchise owners across Australia and they too have indicated businesses are starting to thrive (excluding the hospitality sector which has been disadvantaged from forced Government lockdowns) and this has resulted in many above market transactions occurring which have set new benchmarks in certain areas. Some amazing results are coming out of Sydney precincts such as Marrickville and North Sydney. There is no doubt that Property has been a shining light throughout a difficult COVID period. With the country looking to re-open both domestically and internationally we are hopeful that other sectors, particularly our hospitality and tourism operators will start to rejuvenate and experience some good growth in the near future. We trust you will find the information within this month’s edition informative and of course if you ever need any property advice please feel free to reach out to any of our team members. Nick Comino 0412 151 492 nick@RnHcommercial.com.au Joseph Grasso 0418 789 080 joseph@RnHcommercial.com.au