Raine and Horne Commercial

INSIGHTS SPRING 2018 | 42 SA | Adelaide South Australia David Ente of Commercial South Australia says yields for retail, industrial and office assets in Adelaide range from 5.0-7.0% depending on the lease terms and the quality of the tenant. A key driver of the market is the state government’s decision to remove stamp duty on commercial property effective 1 July 2018. According to David, “It’s early days for the stamp duty-free Adelaide commercial property market, however we are very confident that interstate investors and local businesses will start to buy commercial assets across the city.” He adds, “On a $1 million commercial property sale, the end to stamp duty will mean a saving of just under $50,000, a sum that is sure to appeal to investors from Sydney and Melbourne in due course.” While the removal of stamp duty will likely create higher demand for commercial real estate in Adelaide, yields may soften. Raine & Horne Commercial SA recently listed for sale or lease a well-located warehouse at 33-35 Grove Street, Marlestone. Featuring ample office and storage space, the warehouse is located on a 1,917 square metre site close to the airport, CBD, and the north/south corridor. David, who sold the property a few years ago for $1.9 million, is expecting the buyer will be a plumbing supply business or a major electrical retailer. “ It’s early days for the stamp duty- free Adelaide commercial property market, however we are very confident that interstate investors and local businesses will start to buy commercial assets across the city. ”