VIC MARKET OVERVIEW
VICTORIA
VIC Market Overview with Andrew O’Connell & Pierre Ghougassian
What types of properties are in most demand? The entire Industrial market nationally has experienced exponential growth over the past 3-4 years. Across metropolitan Melbourne, Industrial land values continue to rise due to the huge undersupply of Industrial land in all markets. This coupled with record low vacancy levels has created a perfect storm that has seen rents rapidly increase over the past 12-18 months. Demand for Industrial land, vacant possession, and Investment grade stock remain strong whilst the latter Is currently going through a correction due to the recent Interest rate rises over the past 6 months. What do you see as the biggest challenges that face buyers, sellers, lessees, and lessors in today’s market? Currently, there are several challenges facing the entire market rising Interest rates, servicing and construction costs are making It more difficult for new projects to get off the ground. Luckily a lot of this Is offset by rising rentals. On a global level the war In Ukraine, the hangover after Covid, rising oil prices and the rising cost of living have many believing we are headed for a global recession. Locally record low vacancy rates for Industrial property and a substantial
Andrew has more than 32 years of experience in the commercial and industrial market, Andrew has been a senior director at some of the largest real estate firms in the world and has been responsible for some of the largest sales and leasing transactions across Melbourne. Andrew together with Pierre has started Go Commercial Industrial. Andrew is highly regarded by the market and has an extensive database of purchasers looking for assets. Pierre has worked for several multinational real estate companies as a National Director spanning over a 16-year career with both Cushman & Wakefield and Jones Lang LaSalle before starting GO Commercial Industrial.
ANDREW O’CONNELL Director, GO Commercial Industrial
PIERRE GHOUGASSIAN Director, GO Commercial Industrial
60 – October / November 2022
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