Raine and Horne Commercial

At a Glance - The KeyMarket Drivers Returns on Investment In today’s low rate world, it’s understandable that investors are looking for assets with the potential to deliver strong returns. Commercial property ticks this box –with the added point of appeal of very lowongoingmaintenance costs. Low Interest Rates Interest rates in Australia are at record lows – and the Reserve Bank has repeatedly stated that it expects to keep the cash rate at its current near-zero level until at least 2024. But there are no guarantees. Savvy investors and business owners are stepping into the commercial market now to take advantage of the compelling combination of healthy yields and low rates before borrowing costs rise in the future. Tight Supply As residential property values soar, the supply of commercial assets is tightening amid a paucity of newdevelopments, conversion of commercial sites to residential dwellings, and the sacrifice of established commercial precincts for new infrastructure developments. This is not only driving commercial values higher inmany parts of the country, it is a situation that could take years to resolve, giving commercial buyers the reassurance of potential capital growth.