Raine & Horne Commercial

NSW - Liverpool Bruce Schell of Commercial Liverpool reports yields in the area of around 6.0% for freehold strip shops, rising to 6.5% for strata retail property. In the industrial market, yields range from 4.0-4.5% for high quality freestanding properties through to 5.0% for strata units. Industrial property is in hot demand across Liverpool, with a vacancy rate below 1.0%. As a consequence, Bruce believes yields could rise. Retail space however, is seeing vacancy rates of about 10.0%, and this could push yields down as COVID-19 and the trend to online shopping continue to impact demand for retail assets. In terms of leasing, Bruce says the industrial market has barely missed a beat during the pandemic, with only a small percentage of tenants requesting short term rent relief. Similarly, less than 5.0% of Commercial Liverpool’s office portfolio requested rent relief – and then only for the three months to June. According to Bruce, “the market is being driven by owner occupiers looking for all types of industrial property, and investors seeking strong returns and solid tenants.” Recent sales results include the sale of a commercial development site at Narellan for $1.30 million, and a factory unit at Minto, which commanded a sale price of $450,000. A strata office in Leumeah was sold for $410,000. 17 - Bruce Schell bruce.schell@rhc.com.au