Raine & Horne Commercial

NSW - WaggaWagga Craig Tait of Commercial Wagga reports seeing “significant interest” from interstate as well as local investors. He adds, “owner occupiers are also active in the market and taking advantage of low interest rates.” Yields in the region average 6.5-7.0% for retail assets, 7.0-8.0% for industrial property, and 7.5-8.0% for office space. According to Craig, yields are expected to hold firm however, there is still some uncertainty around the impact of COVID-19 on retail property. Yields on industrial assets have dipped slightly, but Craig believes they are unlikely to move much more in the near future. He adds that in the office market there are still some vacancies, which could impact yields in the short term. Demand for commercial property in Wagga may have eased during the early weeks of the pandemic but Craig says the market has bounced back. He explains, “demand has increased since July. We have negotiated several retail leases and sales since 1 July, and our region is recovering very well.” As a guide to the strength of the Wagga market, Craig’s team have negotiated a number of successful results including 48 Fitzmaurice Street, a 600 square metre multi-tenanted CBD office investment ideally positioned in the heart of the Wagga Wagga CBD, which sold for $2.1 million. A 980 square metre modern tilt panel showroom and warehouse at 2/142-144 Hammond Avenue, East Wagga with high exposure to the busy Sturt Highway was sold for $1.375 million. Key lease results include 2 Baylis Street, Wagga, a shop space of 320 square metres, which was leased for $90,000 per annum. Another retail space of 560 square metres at 174 Fitzmaurice Street, Wagga was leased for $115,000 per annum. 27 - Craig Tait craig.tait@wagga.rh.com.au