Raine and Horne Commercial

NSW - North Sydney Nick Moloney and Jay Sheffield from Commercial North Sydney, say retail property in the city’s north is generating yields of 6.0-7.5%, industrial assets 4-5% and office space 5-6%. According to Nick, retail yields are volatile at present due to the uncertainty and lockdowns of COVID-19. However, he believes, “Retail outlets that have pivoted to stay in business are likely to come out in a far stronger position than most.” Industrial yields are expected to fall as significant demand from owner occupiers and investors have seen prices rise and yields compress dramatically. “Industries that occupy industrial properties have, in general, succeeded during the COVID-19 pandemic,” says Nick. “There are exceptions, but on the whole, industrial is the best performing asset class of commercial property during COVID-19.” Yields on office assets are also likely to fall. Nick is expecting a “surge in demand for commercial office space from owner occupiers and investors post COVID-19. Current low interest rates and the lack of stock across the Lower North Shore will be the biggest driving factors behind this market change.” A number of recent sales by the Commercial North Sydney team have set records for the highest results per square metre in 2021. These include office space at 102 and 107/506 Miller Street, Cammeray, which sold for $1,237,500, or $8,065 per square metre. A 121 square metre property at 102/44 Miller Street, North Sydney sold for $1.25 million, equating to $10,000 per square metre. A 74 square metre property at 204/83 Mount Street, North Sydney achieved a sale price of $890,000, or $11,351 per square metre. 16 - Nick Moloney nick@rhcns.com.au