Raine and Horne Commercial

NSW - WaggaWagga Craig Tait of Commercial Wagga Wagga says yields in the area range from 6-7% for retail property to 7-8% for both industrial and office space. Vacancy rates are about 5% for retail and industrial property, rising to 8% in the office market. According to Craig, the region’s higher yields and lower vacancy rates are key drivers in the Wagga market. “The Wagga Wagga market has seen significant increases in capital values over the past 12 months, as demand has increased from interstate investors,” says Craig. “Owner occupiers are also capitalising on low interest rates, strengthening the market for vacant buildings. Vacancy rates are expected to fall over the next 6-12 months as the region recovers from the effects of COVID-19 lockdowns. The rural economy is strong, which is supporting sustained commercial growth in the region.” Recent sales in the area by the Wagga Commercial team include 114 Baylis Street, Wagga – a retail property, which sold for approximately $1.45 million, and 9-11 Gurwood Street, a mixed-use retail building with residential accommodation, which sold for approximately $1.5 million on a yield of 6.7% net. 22 - Craig Tait craig.tait@wagga.rh.com.au