Raine and Horne Commercial

INSIGHTS SPRING 2018 | 10 QLD | Brisbane North Trent Bruce of Commercial Brisbane North says retail assets in Brisbane North are yielding between 5.5% and 6.5%, industrial property is yielding up to 7.5%, and office space is generating yields between 6.5% and 7.5%. These yields are expected to be stable for the remainder of 2018 given the current supply/demand balance. Buying activity in Brisbane North is evenly spread between owner occupiers and investors. Trent notes, “The continued low interest rate climate means it is cheaper to own and occupy premises paying bank interest than it is to lease.” However, Trent adds, “Potential owner occupiers and investors are finding it more difficult to borrow funds due to banks tightening on lending criteria. Demand or investment properties is a racting strong interest if the fundamentals are correct – that is, a property has a quality secure tenant with a decent term remaining on the lease and the building is also functional and in a good location.” In the current market, industrial assets have been the most consistent performer. However, there may be some counter cyclical opportunities available in both office and retail categories to purchase, refurbish and reset the leases via a strategic leasing marketing campaign. Brisbane North “ The continued low interest rate climate means it is cheaper to own and occupy premises paying bank interest than it is to lease. ”