Raine & Horne Commercial

SA - Commercial In South Australia, retail space is returning yields of 6.0-7.0%, rising to 6.5-7.5% for industrial assets, and 5.75-7.25% for office space. David Ente of Commercial South Australia expects these yields to remain unchanged for the rest of 2020 owing to the stability of the SA market. Industrial property is experiencing very low vacancy rates of just 5.0-7.0%, and David says he is seeing reasonable demand for industrial space. Vacancies for office property vary depending on the quality of the asset. CBD A-grade properties are experiencing vacancies of 10.8%, climbing to 16.6% for B-grade stock. David explains that while the pandemic initially had a big impact on the retail market, there are signs that this is now easing. He observes that the office market isn’t currently effected by COVID-19 but this may change as renewals come up, adding “we believe many businesses will look at work from home options for some staff members, or split their teams into week on/week off arrangements, effectively halving office space requirements.” Recent sales by David’s team include a set of four industrial units on four titles at Marion Road, Park Holme, which sold for $1.83 million on a yield of 6.8%. An office/retail property at 4-6 Light Common, Mawson Lakes was leased for $95,000 per annum, representing a return of $211 per square metre. 37 - David Ente david.ente@rhc.com.au