Raine and Horne Commercial

NSW - Wollongong Mathew Ivanoff of Commercial Wollongong says yields in the Illawarra range from 6.5-7% for office space, to 7% on industrial property and 8% on retail assets. He adds that return on investment is the key market driver at present. “Business sentiment in the Illawarra has remained positive,” says Matthew. “Development and construction has continued to gather pace in both the residential and commercial markets, and the outlook remains buoyant among both tenants and landlords.” While Matthew says the retail property market was impacted by COVID-19, he is seeing signs of recovery. He adds, “Industrial property benefitted greatly, with the small business sector taking the opportunity to increase floor space by leasing or buying”. The office market slowed initially but quickly rebounded as the Illawarra experienced few cases of COVID-19. As a guide to recent activity, Tomerong Service Centre secured a sale price of $3.175 million, while a 6,000sqm heavy industrial warehouse plus hardstand was leased for $360,000pa. 21 - Mathew Ivanoff mathew@rhw.com.au