New South Wales | 19 Luke Horton of Commercial PortMacquarie says buyer demand for all types of commercial property remains strongwithin PortMacquarie. The low cost of money and increased number of self-managed super funds are key factors driving demand for commercial real estate in the region, as well as out of town investors looking for opportunities. As a result, yields have tightened and now reflect between 5-6% net, and there has been no differential in yields across industrial, retail or office property. Businesses involved in the employment/training sector and government funded businesses are themost active in the office leasingmarket. Building companies remain busy too, and are actively renting and purchasing warehouses, as well as setting up sales offices and administration space. “Rents have increased in industrial property by up to 50% over the past three years due to demand,” says Luke. “Lease renewals have been more challenging. The mum and dad business operators are still cautious and recovering from impacts of local fire and flood events and COVID restrictions that, combined, have affected the local area for over four years. Most are electing for one-year renewals to see how the next 12 months work out.” “The prospect of more interest rate hikes, ongoing wet weather and a new Federal Government, were among the reasons many tenants were going down the short lease commitment path,” Luke said. Several large long termownership landholdingswithin Port Macquarie have been put on themarket recently, somewith price expectations more than $100 million, which is encouraging for the area to see new buyer/investor opportunities. Luke Horton lhorton@rhcpmq.com.au Port Macquarie
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