Raine and Horne Commercial

NSW - Wollongong Mathew Ivanoff of Commercial Wollongong says yields in the Illawarra range from 5-6% on office space to 6-7% on industrial property. The impact of lockdowns has seen demand for retail space soften, however the office market is experiencing a vacancy rate of just 6-8%, while the industrial market, which is forging ahead, has even tighter vacancy rates of 3-4%. According to Matthew, the healthy returns on commercial property are a key driver in the market, with industrial property continuing to gain strength, supported chiefly by demand from small businesses. The robust nature of the industrial market is highlighted in recent sales activity. Matthew and his team secured the sale of 18 units in stage 3 of a light industrial complex located in the northern suburbs of Wollongong. The units were all sold within just one week for an average price of $520,000. The final stage of the development will be released to the market in 2022. 23 - Mathew Ivanoff mathew@rhw.com.au