Raine and Horne Commercial

29 | INSIGHTS SPRING 2018 NSW | New England Bob Newlan of Commercial Tamworth says the drought affecting New South Wales is now “well entrenched and having a profound impact on the New England region and beyond.” Despite this, commercial property in Tamworth is generating strong yields ranging from 8.50% on industrial assets to 7.5% on retail and 6.5% on office properties. A surplus of office property is expected to see office yields remain stable, while retail yields are being held back by the drought, which is seeing many farming families facing tighter incomes, and the growth of online retailing. Yields on industrial assets in Tamworth are expected to grow by 1.0% by the end of 2018 as demand remains strong amid tight supply. Indeed, vacancy rates on industrial property are as low as 2%, rising to 5% on retail space and 15% on office property. Interest between SMSFs and owner occupiers is evenly split, though Bob says activity among foreign buyers has increased. Bob nominates industrial assets as his top pick as it is less impacted by the growth of online retailing, and he says for this reason, industrial asset values have increased in Tamworth. Tamworth “ Interest between SMSFs and owner occupiers is evenly split, though activity among foreign buyers has increased. ”