Raine and Horne Commercial

QLD - Southside &Bayside Ongoing low interest rates are continuing to drive demand for commercial property in Brisbane’s south. Joseph Grasso of Commercial Brisbane Southside says yields in this part of the city range from4.75-6.0% for retail property, 5.25-6.5% for industrial assets and 5.5- 6.5% for office space. Yields on industrial assets are expected to firm evenmore, reflecting high demand for this asset of choice. Listed stock in the area is at low levels, and Joseph says leased investments and vacant buildings for owner occupiers are experiencing the highest demand. Joseph says poor cash returns are driving investors to Brisbane commercial real estate. “Money in the bank is generating returns of 0.3- 0.4% if you’re lucky on a termdeposit over 12months. “In comparison the returns that commercial property provide are extremely attractive, while investing in the stockmarket is still a volatile ride.” Reflecting some residential markets around Australia, Joseph says there is an element of FOMO (Fear of Missing Out) driving some investors to snap upwarehouses in Brisbane’s southside. “Investors are still buying office and retail space to the south of the city too, as long as the assets are well-located and strategic.” 24 - Joseph Grasso joseph@rnhcommercial.com.au