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Vincent West of Commercial Northern Beaches describes the industrial market on the Northern Beaches as “very tight”. He explains that for every new home being constructed in the area, there is a resident who also wants to work locally. However, in the absence of new land releases for commercial developments, many larger commercial assets are being amalgamated and  developed into smaller units pushing up the value of existing premises. 

Reflecting this, yields on industrial assets are down to 5.0-5.5%, in some cases falling as low as 4.5% depending on price point and location.

Summing up the market, Vincent says, “In the past, certain pockets of the Northern Beaches were more popular than others for industrial property but I would describe the current market as ‘hot’ right across the region.”

It’s a similar story for office space. Vincent says his team has sold more office property in the last 12 months than in the previous six years combined. Yields on office property are sitting at 6.0-6.5%, down from 8.0% 12 months ago.

In the retail space, Vincent believes the market is shifting – driven in part by online retailing, and different types of businesses such as gyms, are increasingly occupying strip retail outlets. 

 "In the past, certain pockets of the Northern Beaches were more popular than others  for industrial property but I would describe the current market as ‘hot’ right across the region.”

Vincent West, Raine & Horne Commercial Northern Beaches