November 2016 - Market Wrap Up
COMMERCIAL MARKET WRAP: CENTRAL COAST
Investment Trends, Leased, Sold, New to the Market and Coming Soon
October and the start of November has seen some very interesting movements within the local commercial market.
Nothing more exciting than the continual demand for commercial investments. Heading the list is 415 Terrigal Drive, Erina. Sold under the hammer, this medical investment achieved $2.62 million. A remarkable result in the local market considering the developed area is only 237m2 (approx.). A touch over 6% for a medical practice on a 5 year lease.
On the smaller end of the investment market 6/57 Pacific Highway, West Gosford has sold for $600,000 showing a net return of 6.5%. Occupied by Plus Fitness, this property achieved more than 25 enquiries in a 2 week window, again showing the appetite and competition in the market.
25 – 27 Fairview Avenue, The Entrance has hit the market with 2 tenancies (occupying 4 shops) right in the heart of the action. Tremendous upside in both rental and future development potential. Blink and you’ll miss it.
Commercial office leasing continues to be the most difficult market. A diminished demand, combined with new stock and a trend for tenants to consider purchasing is making things difficult for landlords already experiencing vacancies.
In general terms you would have to believe that the commercial / industrial market remains in a strong position, strengthened by low interest rates and strong demand. Leading into the Xmas break, this is a positive outlook for 2017.
Thankyou Christmas Drinks 2016
Raine&Horne Commercial Erina would like to say thankyou to our clients and colleagues for your continued support throughout the year by inviting you to attend our Christmas celebrations at the Terrigal Surf Club on the 2nd of December.
We look forward to seeing you there!