Raine and Horne Commercial

NSW - Inner West/South Sydney Luke Smith of Commercial Inner West/South Sydney says the market is being driven by owner occupiers seeking industrial space, and investors seeking secure leases and yield. In addition, developers are again becomingmore active and looking for opportunities. Yields in the Inner West/South Sydney area currently average around 4% on industrial assets, and 4-5% for retail and office property. Luke expects yields on retail assets to remain stable, saying, “Well-positioned assets will still be sought after as buyers seek opportunities for rental yield and to value add.” Industrial yields are expected to rise. “As the strongest performing asset class in recent history, we expect further growth in industrial property,” says Luke. “Supply in the Inner West and South Sydney is shrinking due to redevelopment and to make way for infrastructure. Yet demand remains strong froma range of businesses including e-commerce.” Recent sales include 94-98 Addison Road, Marrickville, a 797sqm development site with DA approval for 35 boutique self-contained studios. The property was sold at auction for $5.9million. The sale campaign received over 150 logged buyer enquiries. An automotive workshop at 2 Young Street, Redfern sold at auction for $2.960million plus GST. With mixed use zoning and a land area of 363sqm, the sales campaign attracted over 200 logged enquiries and 14 contracts were issued. 11 - Luke Smith lsmith@rhcss.com.au