ISSUE 167 | MARCH 2024 | 02 9630 8000 | PAGE 5 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 so accepted less profit margin. 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, fueling 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. FOR SALE Smithfield 2,047m2 approx. Warehouse/Office with Huge Power • Stated warehouse area includes 254m² Flammable Goods Store • Stated office area includes 112m² mezzanine • Thirty (30) car spaces • Excellent truck access • High clearance warehouse • Secured site Robert Ally: 0413 758 658
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