Raine & Horne Commercial

NSW - Macarthur Daniel Krobot of Commercial Macarthur says yields on retail and industrial assets are currently around 5.0%, rising to 5.5- 6.0% for office property. While these yields are expected to stay the same through 2020 and into 2021, Daniel says, “we are experiencing ample enquiry in the marketplace with cash buyers waiting, however there is a lack of quality investment stock to meet the demand.” Vacancy rates range from less than 5.0% for industrial stock through to 10.0% and 15.0% for office and retail assets respectively. The pandemic has had a mixed impact across the different market segments. Daniel says, “food and restaurants have been impacted in some locations, while some well-established businesses have adapted and continued to prosper. “We have seen virtually no impact in the industrial market, which has been the most resilient. The serious lack of industrial stock in the Macarthur region has ensured the sector has not slowed at all. Sale and lease enquiries are especially strong for properties sized between 200 and 1,500 square metres.” In the office market, Daniel says there has been minimal COVID-19 impact due to a lack of supply. “The market is still very strong especially for quality office space in the 100-300 square metres market segment.” Quality office space that offers good natural light and is disability compliant is always in high demand. Daniel believes the Macarthur region “will continue to prosper as a lot of businesses are downsizing and moving away from core CBD locations. We are also key beneficiaries of significant infrastructure projects such as Sydney’s second airport, coupled with ongoing residential growth.” 18 - Daniel Krobot daniel.krobot@rhc.com.au