Raine & Horne Commercial

WA - Commercial Anthony Vulinovich of Commercial Western Australia says yields on prime investment grade industrial assets range from6.0-6.5%, with yields rising to 6.0-7.0% for office property. He notes that the office market has been highly disrupted by COVID-19, making it difficult to predict howyields will fare in the future accurately. However, the industrial markets are experiencing plenty of demand, which is likely to push yields down. Earlier this year, when lockdowns were first announced, business activity “virtually came to a standstill” according to Anthony. However, he notes that, “since then, demand for industrial assets has picked up due to demand from logistics andmining services firms.” Further mollifying the impact of the pandemic, Western Australians are happy to transact locally, and Anthony says “border closures have not made a huge difference in Perth.” Prime industrial property is experiencing vacancy rates of 10.0%and 15.0% for secondary industrial. That said, Anthony believes, “buyers have recognised that prime industrial is a safe asset class with the potential for rental, and in turn, capital growth, and this is driving keen interest in the sector.” A 2,600m² showroom investment opportunity at 202Winton Road, Joondalup recently sold for $4.2million. Premium industrial land, which is part of Tonkin Highway Industrial Estate, commanded a sale price of $5million. There were more than seven land sales contracted in September. 43 - Anthony Vulinovich anthony.vulinovich@rhc.com.au