Raine and Horne Commercial

VIC - Brunswick Tim Frlan, Commercial Managing Director, Brunswick, says that across Melbourne current average yields are around 4-5% for retail assets, 5% for industrial property and 5-6% for office space. Tim expects these yields to remain the same in the short term though with a possible rise in yields across the office market. While Tim says ultra-low interest rates are a key driver in the Melbourne commercial market at present, as in many areas, industrial property is the stand-out performer, with vacancy rates of just 2%. Both retail and office properties are feeling the brunt of Melbourne’s extended lockdowns, with vacancy rates of around 25% in the retail market and 40% in office property. 37 - Tim Frlan tim.frlan@brunswick.rh.com.au