Media release - 7 September, 2016
The Spring 2016 issue of Raine & Horne Commercial Insights has found a trifecta of factors – comprising low interest rates, a supportive Federal government and lacklustre returns on many other investment classes – is driving significant interest in commercial property assets on Sydney’s North Shore.
“Today’s low interest rates make now the ideal time to review commercial portfolios and add new assets,” said Angus Raine, Executive Chairman, Raine & Horne Commercial.
“Small business owners are well-placed to take advantage of the current favourable market to step into their own premises, or upgrade business premises, and strengthen their enterprise’s asset base.”
In North Sydney, the commercial market has a vacancy rate of 7.8% however this looks set to change.
According to Nick Moloney, Sales Director of Raine & Horne Commercial North Sydney, many commercial buildings across the lower North Shore are being withdrawn from the market for redevelopment as residential towers.
Given the strength of the Sydney residential property market, this trend is likely to continue – potentially with significant impact on the local commercial market. “With limited new supply coming on board, the vacancy rate in North Sydney could drop to 5% - a level not seen since 2001,” said Mr Moloney.
Based on this estimate, commercial vacancy rates will continue to tighten, leading to increased rents in North Sydney – particularly as rental incentives taper off. This underpins the North Shore market as an attractive destination for investors seeking strong returns.
For more information on Australian commercial property markets, download a copy of Raine & Horne Commercial Insights.
About Raine & Horne Commercial
For more than 130 years, Raine & Horne has been assisting Australians achieve their property objectives. Since its launch in 1984, Raine & Horne Commercial has been an active market participant and is now the largest commercial property group in Australia, with over 35 offices servicing every state capital and key regional growth centres.
It is a full-service commercial real estate network with a broad suite of commercial, industrial and retail property services including sales, leasing, consulting, business broking, business recovery & insolvency, facilities and asset management services.
For further media information contact:
Angus Raine, Executive Chairman, Raine & Horne Commercial on 0409 920 697
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400