Commercial property on the Central Coast has benefited from high levels of interest from self-managed superannuation fund investors.
Brett Hunter of Raine and Horne Commercial, Erina, said healthy demand on the Central Coast market was being driven by a variety of factors that included large volumes of commercial tenants who wanted to own their premises, low interest rates, and strong interest in commercial property among self-managed super funds.
Yields for prime Central Coast retail, industrial and office property with strong tenants and long-term leases, were from five to six per cent.
These yields were down from seven to eight per cent this time last year, and were expected to remain largely unchanged during 2017.
Vacancy rates varied according to the type of property, sitting at low levels for retail, and rising slightly for industrial, while remaining high for office properties.
The vast majority (90 per cent) of properties being sold were established buildings and virtually all sales (upwards of 95 per cent) are conducted by private treaty.
As a key driver of the market, self-managed super funds were highly active in the Coast’s commercial market, particularly in the under-$2 million price range.
Trustees were typically hoping to secure yields of four per cent or better.
Some of the best picks in the area were industrial properties with low yields, leased to blue chip tenants.
Source:
Media release, May 1
Brett Hunter, Raine and Horne Commercial, Erina