Raine & Horne Commercial

NSW - Erina Brett Hunter of Commercial Erina, says average yields in Erina are currently 7.0-8.0% across all commercial sectors. These are expected to remain stable. As Brett explains, “retail strips are performing well, plus there is limited stock listed for sale, so yields are firm.” Looking at industrial property, Brett says, there is strong demand but a shortage of stock. The outlook is less robust for office space as a result of the pandemic. “With a lot of businesses nowworking from home due to COVID-19 , many no longer require the space that was previously essential, and we are seeing an oversupplied market,” explains Brett. Vacancy rates in the area remain tight at 3.0% for both retail and office property, rising to 15.0% for office assets. The mainmarket drivers for investors are long leases, high quality tenants, and appealing property locations. For owner occupiers, the prime challenge is finding a property that suits their business amid the tight availability of quality assets in prime locations. Brett Hunter says his team have achieved noteworthy sales including a block of eight shops in a coastal location (all tenanted) for $2.95 million, and a bulky goods facility of 1,273 square metres, which sold for $2.8 million. A popular aquatic and fitness centre at Terrigal was recently listed for sale. The property included 2.03 hectares of prime acreage complete with a 4-bedroom home, large machinery shed, and a 25-metre heated pool and spa. A favourite among locals, the property sold for $3.2 million. The Central Coast commercial market has plenty to gain from the soon-to-open NorthConnex project, a nine kilometre twin tunnel linking the M1 Pacific Motorway at Wahroonga to the Hills M2 Motorway at West Pennant Hills. NorthConnex will improve freight access, connectivity and reliability across Greater Sydney, with the potential to make the Central Coast a leading commercial hub. 14 - Brett Hunter brett@rhccc.com.au