Brad Wallace of Commercial Newcastle says the current commercial sales and leasing market in Newcastle remains steady. Increased yields are evident for most short- to mediumterm leases. According to Brad this is “primarily driven by the tail end of the current interest rate hike cycle”. Industrial land values across Newcastle appear to have levelled out following unprecedented capital growth over the last 3-5 years. Brad notes, “Leasing rates are still trying to catch up with the cost of construction and land values.” The Newcastle team secured the $635,000 sale of 1/3 Edge Street, Boolaroo – a 171 square metre industrial strata unit in the Bundera industrial estate. The property is leased for $33,345 net per annum plus GST and outgoings and is located in one of Newcastle’s retail hubs with a nearby Bunnings Hardware outlet. The sale of 21 Broadmeadow Road, Broadmeadow for $1.035 million indicates the health of Newcastle’s property market more broadly. The 512 square metre lot is zoned R3 medium density residential, and as such offered attractive opportunities for redevelopment. Brad Wallace brad.wallace@newcastle.rh.com.au Newcastle Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-$350 $150-$240 $250-$500 Vacancy 20% 15% 20% Yields 6-8% 6-7% 5-7% Rates p/m² $3,500-$5,000 $3,000-$4,500 $4,000-$6,000 Current market conditions $635,000 1/3 Edge Street, Boolaroo Recent Notable Transactions SOLD $1,035,000 221 Broadmeadow Road, Broadmeadow SOLD 16 | New South Wales
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