Commercial property markets in the South East Queensland regional city of Toowoomba are continuing to produce decent results for investors with a shortage of listings the biggest issue for buyers.
“Anyone with good sales stock is hanging onto it because of the decent yields they can earn compared with other asset classes,” said Andrew Lynch, Principal of Raine & Horne Commercial Toowoomba, which celebrated its fourth year of operation in July. Yields across Toowoomba’s commercial property markets range from 7.0% to 8.0%.
“Our commercial market is ticking over because local businesses have been largely unaffected, demonstrated by the fact we’ve had very few requests for rent reductions from our tenants,” Andrew continued. “With low vacancy rates and healthy yields, you’d need a very strong case to move money out of a commercial property investment in Toowoomba.”
Meanwhile, the leasing market continues to tick over, according to Andrew. “There are still businesses that are seeking space for lease.”
While the office and retail sectors are reasonably steady, Toowoomba’s industrial hubs have continued to be hives of activity. “Even when our team were mostly working from home a few months ago, Toowoomba’s industrial area was humming. It never stopped, and it’s the same now with businesses still producing their products.”
Only shopping centres have struggled somewhat, noted Andrew. “However, retail strip shops are going well, and even in the middle of lockdown, we were still putting cafes and takeaway businesses into retail locations.
Looking ahead, Andrew is confident Toowoomba’s commercial markets will continue to perform until Christmas and into the new year. “We are putting our money where our mouth is and will be expanding our commercial sales and leasing team in the fourth quarter of this year.”
For all your commercial property sales and leasing enquiries in Toowoomba contact Raine & Horne Commercial Toowoomba on (07) 4638 5222.