14 | New South Wales Daniel Krobot of Commercial Macarthur says yields on retail and office assets are around 5%, while yields on industrial property are about 4-5%. In the retail market, vacancy rates are 5-10%. Daniel says, “With the exception of food retail, retail assets are becoming less desirable (especially high street) in our area, where we have multiple large retail shopping centres.” Industrial property is experiencing a vacancy rate below 2%. “I believe we have seen the peak in prices, and the market may now remain level,” says Daniel. “There is still a complete lack of stock available, but looming cost of money pressures will cause more caution in the market and likely result in a pull back on the crazy prices being paid for industrial assets.” The office market has a vacancy rate of around 5%, and Daniel says lack of stock is a hallmark of the current market. He adds that leasing is slowing for properties above 200 square metres. The team at Commercial Macarthur managed the sale of 28a Williamson Road, Ingleburn – a 1,848 square metre factory on a 5,000 square metre site, which sold for $6.1 million off market. Already, the team have sold 45% of the planned strata business suites due to be constructed at HQ Gregory Hills, a 10,000 square metre office/retail development. In addition, 19 units have been sold off the plan at 12 Tyree Place, Braemar, a 21-unit industrial development. “The market continues to perform with record levels of growth resulting in the best industrial property market we have seen.” Daniel Krobot daniel.krobot@rhc.com.au Macarthur
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