Raine and Horne Commercial

INSIGHTS SPRING 2018 | 12 QLD | Gold Coast Michael Parisi of Commercial Gold Coast says yields are ranging from 5.0-7.0% on retail property, rising to 7.0-8.0% for industrial assets and heading as high as 9.0% for office space. He notes that limited stock especially in retail, is likely to help yields remain stable through to the end of 2018. Vacancy rates are very low on the Coast – below 5.0% in the case of retail property. Investors account for around 80% of buyers on the Gold Coast. SMSFs are especially active in the $2-3 million market with a preference for properties delivering yields of 7.0%. Michael says that owner occupiers are favouring industrial assets. A small percentage are buying office space – largely constrained by tight supply. Extremely low listings of retail space are making it challenging for businesses to invest in their own retail premises. Interestingly, Michael believes the Commonwealth Games were a major setback for the Gold Coast’s commercial market. He notes that a number of businesses have closed their doors since the Games, and this concurs with media reports that local businesses bore the brunt of residents staying away from the area out of concerns about heavy traffic 1 . 1 h ps:/ /www.theguardian.com/australia-news/2018/apr/13/where- are-the-people-gold-coast-empty-for-commonwealth-games Gold Coast “ Extremely low listings of retail space are making it challenging for businesses to invest in their own retail premises. ”