Raine and Horne Commercial

9 | INSIGHTS SPRING 2018 QLD | Beenleigh John Tamblyn of Commercial Beenleigh says yields on commercial assets range from 6.5%-7.5% for retail assets, rising to around 7.0-8.5% on industrial assets and 7.0-8.0% for office properties. These yields and property values are expected to remain stable during 2018. SMSFs continue to be active buyers with a preference for properties in the $200,000 to $1.5 million price range. SMSF buyers are typically looking for yields of 6.0-8.0%. According to John, “Sales are being driven by local and interstate investors seeking stable tenants. Interest among owner occupiers is being fuelled by several factors – commercial property represents an alternative to equities, and for many business operators the current low interest rate presents an opportunity to own their premises via their own super fund.” John points to industrial assets as his preferred choice, saying, “Industrial tenants are less likely to relocate so vacancy periods are usually lower. Refurbishment costs are typically less, and tenant demand is higher than for other types of commercial assets.” Beenleigh “ Commercial property represents an alternative to equities, and for many business operators the current low interest rate presents an opportunity to own their premises via their own super fund. ”