Raine and Horne Commercial

INSIGHTS SPRING 2018 | 26 NSW | North Coast Graeme Garre of Commercial Port Macquarie says yields on commercial assets are currently around 6.0-7.0% ne , with yields reaching 6.0% ne where the property has a national or public tenant. One of the key challenges facing buyers is the lack of available stock coming to the marketplace. “When properties do list, they are well sought after,” notes Graeme. “But unless owners need to divert their funds elsewhere they really have li le incentive to sell as the returns on other assets just aren’t as appealing as commercial property at present.” Graeme adds that commercial property is now “very popular”. He explains, “We see people with a lot of money in their SMSF and they are often cash buyers. Small business people are also really keen to buy – both as owner occupiers and investors. So when something comes up it generally moves quite quickly because of the underlying demand.” Demand is especially robust for industrial buildings. Tradespeople in particular prefer assets of around 150-200 square metres in the $300,000-$500,000 price range. “These properties are popular because they are affordable,” says Graeme. “A lot of people are happy to buy a small li le strata unit for their own use and lease it back to their business.” Port Macquarie “ Unless owners need to divert their funds elsewhere they really have li le incentive to sell as the returns on other assets just aren’t as appealing as commercial property at present. ”