Raine & Horne Commercial

NSW - Tamworth Bob Newlan of Commercial Tamworth says the combination of COVID-19 and recovery from a prolonged drought is impacting some parts of the Tamworth market. That said, demand for commercial property in New England is being underpinned by sharemarket volatility and low returns on cash. Yields range from 6.0% on office property through to 6.5% on retail assets and 8.0% on industrial stock. These yields are expected to hold firm over the next few months. In terms of leasing, Bob says the region’s industrial market has forged ahead during the pandemic, and vacancy rates on industrial space are just 2.0%. He adds that the retail sector has had only a minor impact from COVID-19, and while there have been some rent reductions, he explains, “Most landlords have been very understanding, and landlord/tenant relationships have remained very good.” Retail vacancy rates are currently around 5.0%. As a guide to the health of the Tamworth market, an industrial warehouse at 18 Crown Street, Tamworth recently sold for $400,000. The team at Commercial Tamworth were also behind the sale for $345,000 of an industrial warehouse at 851 Armidale Road, Nemingha. An office site at 129 Marius Street, Tamworth sold for $1.3 million, and a retail centre located at 186 Marius Street, Tamworth commanded a sale price of $2.25 million. In the leasing market, a retail space at 370 Peel Street, Tamworth was leased for $40,000 per annum (plus GST), and an office suite at 422 Peel Street, Tamworth was successfully leased for $60,000 per annum (plus GST). 26 - Bob Newlan bob.newlan@tamworth.rhc.com.au