Raine and Horne Commercial

NSW - Bankstown Mark Ammoun of Commercial Bankstown reports yields of 4% in the industrial market, rising to 5.5% for retail space and 6.5% across office assets. Vacancy rates are tight across Bankstown, ranging from 3.5% for industrial space to 6.5% for retail assets. “The record low cost of money has resulted in investors chasing assets representing decent yield, and tenants looking to transition from leasing to acquiring property,” says Mark. Lockdowns have overall had a very positive impact on industrial markets according to Mark. He notes that demand for warehouse space has increased dramatically, with the uptick in demand coming from a range of industries including e-Commerce, transport, food and medical. “This is without doubt the best industrial property market we have seen,” Mark explains. “The general market fundamentals are strong, with demand considerably outstripping supply resulting in double digit growth of industrial property values. “The buyer dynamic remains the same. Tenants are looking to transition from leasing to acquiring property, driven by the fact that it can be cheaper to own than rent. Owner occupiers are looking for premises to operate their businesses, and investors are looking to place funds for decent yields. All buyers are aggressively competing for assets, resulting in record prices being achieved across the market.” 10 - Mark Ammoun m.ammoun@rhc.com.au