Raine and Horne Commercial

SA - Commercial David Ente of Commercial South Australia says current yields are 4-6% for retail property. Whereas industrial is traditionally 5-7% for industrial and office property, there have been several instances where smaller industrial tenanted premises have sold for yields under 4%. Vacancy rates are especially low in the industrial market – around 5%, though in Adelaide CBD, vacancies for office space can be as high as 17%. Themainmarket drivers right noware buyers looking for yields on investment property, or demand fromowner occupiers. David says retail property in Adelaide is enjoying steady conditions, with demand for personal services bouncing back following the COVID-driven conditions of 2020. Demand for industrial warehouses remains strong, and there is no real change to the office space market as work fromhome arrangements are minimal across Adelaide. “With the new land tax regime coming into effect this year (closing loopholes onmultiple holdings), we expect some activitywith people opting to sell one or two properties out of a portfolio to reduce land tax,” says David. “Hopefully this sees an increase in listings”. 30 - David Ente david.ente@rhc.com.au