Raine and Horne Commercial

NSW - Parramatta Duarte Figueira of Commercial Parramatta says retail assets are yielding 5.5-6%, while industrial property yields are 4.5-5%, and office space is delivering yields of 4.25-4.5%. No change is expected for these yields in the near term. While vacancy rates on retail property in Parramatta are around 20%, it’s a different picture for office space (8%), and vacancies are minimal on industrial property at about 5%. Notably, Duarte says the industrial market is “Booming to new heights as online sales push demand for logistics and warehousing.” Similarly, he believes working from home – and its impact on the office market, is proving short term, with most workers invited back to the office. Summing up, Duarte says, “Industrial property has seen significant price increases, however stock levels are the lowest in many years. Office rents in the CBD have not been significantly impacted, however incentive levels are at their highest in many years as landlords compete for good tenants, pushing incentives higher.” With interest rates at historic lows, Duarte expects investment sales to continue to record rates for at least the next 12 months. 15 - Christian Cirillo ccirillo@rhc.com.au