Raine & Horne Commercial

QLD - Southside &Bayside Joseph Grasso of Commercial Brisbane Southside says that across Brisbane’s South and Bayside regions, retail property is currently yielding 5.5%. This is likely to rise given pandemic-driven vacancy rates of up to 20.0% in some areas, especially suburban retail markets. Industrial property continues to performwell, with yields of 6.50-7.75%depending on the age of the building and strength of covenant. With a vacancy rate of 8.0-10.0%, Joseph believe these yields could drop as “stock is getting tighter and people have a greater appetite for industrial assets.” Joseph adds, “we have seen some sub-$1.5million tenanted investment properties sell on tighter than average yields for particular areas such as Capalaba and Logan. Investors have been happy to take funds from termdeposits, which aren’t performingwell, and purchase older industrial stock (evenwith vacancy) for yields between 6.0%and 7.0%”. Further confirming the buoyancy of the industrial market, Joseph says, “the market for industrial space below 1,000 square metres is also performingwell in the leasing sector.” As businesses adapt toworking remotely, Joseph says suburban office space has become a less sought after commodity – even industrial warehouse users are seeking space withminimal office area. While yields on office space currently sit at 6.0-6.5%, Joseph expects this could rise through COVID-19. Commercial Brisbane Southside has achieved solid sales results recently including 75-79 Randolph Street, Rocklea, a 2,330sqm warehouse and office, which sold at auction for $1.720million. A number of industrial units in a newdevelopment at 13-17 Enterprise Street, Cleveland sold for between $367,000 and $680,000. An industrial complex at 58 Anton Road, was leased for $278,775 net per annum. 31 - Joseph Grasso joseph@rnhcommercial.com.au