Raine and Horne Commercial

INSIGHTS SPRING 2018 | 6 At a Glance Key Market Drivers Low interest rates Australia is still enjoying record low interest rates despite recent out of cycle rate rises by a number of lenders. This is making it more affordable for businesses to own rather than lease their premises, and many are choosing to buy through a self-managed super fund (SMSF). The rise of commercial property as a powerful asset class A weaker residential property market and low returns on cash have seen a growing number of investors embrace commercial property as a solid, low maintenance, high yielding investment. SMSFs in particular continue to favour commercial property for the long term gains it can provide. The trend to online retailing The growth of online retailing has fueled demand for industrial assets offering warehousing and storage facilities. Traditional retail outlets are being occupied by a “new breed” of tenant such as cafes and gyms, wellness centres and nail salons.