ISSUE 168 | APRIL 2024 | 02 9630 8000 | PAGE 8 YNorth Ryde Blacktown Seven Hills Girraween Silverwater Glendenning Minchinbury Seven Hills Rydalmere Seven Hills Bawdens Deals Done LEASED BY LEASED BY SOLD BY SOLD BY LEASED BY SOLD BY SOLD BY LEASED BY LEASED BY SOLD BY MARKET INSIGHT SPECIAL Industrial Property in Short Supply in 2024 Investors and occupiers of industrial property will continue to largely retain their properties this year, as they did in 2023. The Industrial property sector will remain one of the most desirable asset classes to own in 2024. With rental cash flow growth already outpacing, the growth in rentals from inflation adjusted annual rental reviews, investors understand the ability of this asset class to protect their earning power in a period of inflation. In late 2023, Bawdens completed a survey of a selected groups of tenant businesses whose property they manage for the lessee and the lessor. The survey revealed that many lessees during 2023 expressed not being able to manage the rising expenses and hence accepted less profit margins. However, the survey of sentiment identified that most businesses in 2024 will be focused on recovering the required profit margins by increasing prices. For this reason, the survey participants identified there is a growing possibility of resurgent inflation in the year ahead, fuelling further growth in the prices of goods and services. The survey participants also identified that price increases would likely still be required even if the interest rates were to rise further in the year ahead.
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