Raine and Horne Commercial

NSW - Macarthur Daniel Krobot of Commercial Macarthur says current average yields are 4.5-5% across the commercial market. As in many other areas of Sydney, Daniel says retail leasing has suffered significantly due to the impacts of COVID-19. In the office market, Daniel notes, “Fringe markets are remaining positive, especially for smaller spaces less than 300 square metres. Larger floor plates of 500-plus square metres in the Campbelltown CBD are seeing minimal activity during COVID-19. It’s a different story for industrial assets, where Daniel says there is “Significant demand, minimal supply and a shortage of industrial land being developed”. This is leading to a vacancy rate of almost 0% in the industrial market. Demand across the Macarthur region is being driven by the relative affordability of the area in comparison to greater Sydney coupled with large infrastructure projects and significant residential development. Recent sales include 15 Watsford Road, Campbelltown – a 1,755 square metre industrial building on 4,681 square metres of land, which sold off-market for $4.5 million to an investor. An office property comprised of 963 square metres at 5 Allman Street, Campbelltown was leased to the Catholic Education Office for $270,000 per annum. 15 - Daniel Krobot daniel.krobot@rhc.com.au