Market Overview - NSW
Adam Leacy Partner, Commercial Collective
Q. What were the key market trends occurring throughout 2021 in your region? A. Strong growth across commercial, industrial and lifestyle sectors. Yields tightened as a result of the amount of capital being deployed into the region both domestically and commercially. Q. What have been the fundamental drivers of demand amongst buyers in the last twelve months? A. A combination of low interest rates and the fact that many buyers are cash buyers. Furthermore, throughout the pandemic the region has been viewed as a safe haven which has placed a higher demand across the market. Q. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? A. In line with the aforementioned, there has been a big increase in out of area buyers entering the market, which has shifted from past years. Q. What types of sites are most in-demand given the current strong residential housing market? A. Tier 1 development sites, still in very high demand. Q. How would evaluate the impact of the past eighteen months in your local market? A. Our market has well and truly strengthened. Yields have tightened and although vacancy rates have increased as result of new supply and tenants chasing the flight to quality, we have seen strong growth in the 300sqm-700sqm leasing market which caters for medium-sized businesses. The local firms are growing and we are starting to field more enquires from Sydney based firms seeking to expand into the region.
Q. What are your expectations for the commercial property market over the next twelve months? A. To remain strong whilst ever the market is stimulated by the heavy weight of capital entering the region. Q. Talk us through the most significant deals you have transacted in the last twelve months. Instead of significant deals and to provide a more holistic overview on capital entering the region, Commercial Collective transacted over $260,000,000 in sales over the past 12 months and negotiated a total combined Year 1 rental of over $13,300,000.
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