Raine and Horne Commercial

29 QLD - Mackay Des Besanko of Commercial Mackay reports yields on industrial property of 7.25-8.0%, and 9.0-9.5% on office space. Current vacancy rates are around 5% for retail assets, rising to 18% for office space. Industrial property continues to be the strong performer with a vacancy rate of just 2%. Des says local businesses are feeling more confident of future conditions, and the market is being driven by investors from around Australia “seeking potential higher yields within the regional areas”. He adds, “We are continually seeing an improvement in the office market, with some further lease take ups, and owner occupiers trying to find their new business premises.” As a guide to the market’s health, the team at Commercial Mackay recently secured the sale of a standalone ex- medical building comprised of 430 square metres on a 1,983 square metre site situated in a North Mackay business/ retail precinct for $1.835 million. The sale – to an owner occupier, represented a sale rate of $4,267 net lettable area per square metre, a figure that is without precedent in the Mackay market. - Des Besanko des.b@rhc.com.au