Nichols Crowder and Nixon Industrial, Melbourne’s leading commercial and industrial agency group from Bayside to the Peninsula, has just released its 2015-16 Annual Market Report. The report provides comprehensive data and analysis of the key trends driving these markets, as well as details of each sales transaction completed in the year.
Matt Nichols, Managing Director, says, “Despite mixed economic signals during the financial year, sales and leasing demand for commercial and industrial property remained strong. This is backed up with the insights highlighted in our annual performance report, which shows solid sales and leasing results across the inner and outer South East regions.”
Some key points in the report include:
- Three-quarters of industrial sales were for properties under 500m2, with small businesses being very active in this segment;
- Commercial and industrial property yields at an average of 5% to 7% continue to be much higher than residential property yields (generally 2% to 3%);
- Low interest rates and Self-Managed Superannuation Funds (SMSFs) are driving demand for commercial and industrial property – around 90% of commercial and industrial sales were to SMSFs in 2015-16;
- Shortages of office and retail properties are pushing sale prices higher;
- 97% of leases were renewed, providing stability for landlords and tenants;
- Vacancy rates were low for the year at just 3.4%, highlighting strong leasing demand for commercial and industrial properties.
Nichols continues, “Our annual performance report provides clear and helpful information and data to our clients and interested parties. This is intended to help buyers and sellers in the Bayside to Peninsula markets make informed decisions when carrying out commercial and industrial real estate transactions.”
For enquiries and to order your copy contact:
356 – 358 South Road, Moorabbin VIC 3189