Raine and Horne Commercial

INSIGHTS SPRING 2018 | 20 NSW | Outer South West Daniel Krobot, Commercial Macarthur says yields in the region range from 5.0-5.5% for retail assets to between 5.0-6.0% for industrial and office properties. However, the market is tightly held and there is a significant shortage of stock. Vacancy rates in the Macarthur area are tight – around 5.0-10.0% for office space but falling to below 5.0% for retail and near-zero for industrial assets. Daniel explains that businesses are looking to secure their premises, and infrastructure changes in South Sydney and surrounds are pushing many enterprises to the South West. He adds, “Commercial property finance conditions are generally favourable, and when it comes to repayments, there is very li le difference between renting and owning.” Daniel adds, “We have a complete lack of stock available for sale, especially in the industrial market. Until we see further releases of commercial land this will not change for the foreseeable future.” In a market being driven by owner occupiers, Daniel points to industrial assets as the top pick. He explains, “Products will always need to be housed somewhere – more so because the nature of retail trade is changing and we are moving to a more online world. Smaller industrial units are highly sought after by tradesmen and construction industries, and with the housing boom in South West Sydney and large building projects underway for many years to come I don’t see this segment of the market declining.” Macarthur “ Commercial property finance conditions are generally favourable and when it comes to repayments, there is very li le difference between renting and owning. ”