Victoria Commercial & Industrial Property Market Review - November 2021
Despite the overbearing lockdown conditions until very recently, it’s been an incredible time to be selling an industrial or commercial asset over the last period with a perfect storm of factors contributing to record rates across various asset sizes. The combination of very limited supply, a large pool of buyers, continued low interest rates, and the resilience of industrial property throughout Covid has culminated in some great results for clients.
The scarcity in the market is not unique to prospective purchasers. The leasing market is also experiencing supply issues with quality premises being snapped up on strong rates, short timef rames, and with reduced incentives. Landlords can afford to be fussy when selecting tenants and it is a great opportunity to stand back and think strategically about how to maximize your asset over the next five to ten years.
One of the main issues facing our market is the limited pipeline of industrial land to support our growing businesses. Therefore tenants and occupiers looking to secure a premises, anywhere north of 1000m2, need to start planning as early as possible in order to prevent being backed into a corner within their existing operation.
An interesting observation of late, has been the renewed appetite for premises that suit manufacturing businesses.
It wasn’t too long ago that we expected factories with built in infrastructure of cranes and high power to start phasing out as heavy industry looked overseas for cheaper running costs. The restrictive nature of Covid along with the trade tensions with China seems to be having an impact on the ground. Like the ‘good old days’ properties like these are highly sought after.
2021 has been extremely challenging in Victoria for obvious reasons, but once again the industrial property market has proven to withstand the challenge, and in many cases flourish. We appreciate your support and look forward to assisting you soon.
“Once again the industrial property market has proven to withstand the challenge, and in many cases flourish .”