Here you will find links to national and Brisbane Commercial Property Market Report data provided by a range of major property businesses. We will update these from time to time to ensure the latest reports are listed.
The general sentiment in the office sector currently is quite obviously for heavily reduced demand from office tenants, particularly in the CBD locations and an uncertain short to medium term outlook.
The current industrial market indicators suggest a continued resilient asset class in high demand, with noted compression of yields and likely lifts in industrial rentals across the Brisbane market.
“As we look back on 2020, it has been a year where the industrial and logistics sector has been brought to the forefront and has outperformed all other mainstream real estate sectors. In the 12 months to June 2020, the industrial sector provided a total return of 11.6%, broadly split between capital and income return, and was above the 8.0% and -9.4% recorded for office and retail sectors respectively over the same period. Notwithstanding this, the sector’s landscape has changed significantly, brought on by rapidly evolving economic conditions which has forced both industrial occupiers and investors to adapt to stay competitive.
While the sector has been more insulated when compared to other real estate sectors in 2020, there are several trends and themes which have emerged and will continue to shape the sector in 2021 and beyond.”
“Industrial and logistics property has been brought to the forefront in 2020 and is now the most sought-after real estate asset class among a large share of institutions and private investors. Given the significant weight of capital seeking to enter or expand within the sector, there remains downward pressure on capitalisation rates, despite broader economic headwinds. Our latest report provides an analysis of industrial capitalisation rates post the A-REIT reporting season.”
“Looking ahead, the good news is that the impact of the pandemic is expected to be softer
in the industrial and logistics sector, with demand for e-commerce products and grocery
items increasing daily. Moreover, the shift in supply chain strategies from a “just-in-time”
inventory system to increased levels of safety stock should bolster the need for industrial
inventory and keep development pipelines active.”
While retail shopping centres and strip shop locations were hit hard in 2020, non discretionary retailers eg supermaket, hardware, fuel etc were unaffected and ultimately improved performance and therefore are in great demand from investors.
“Our focus throughout the pandemic has been on essential service investments, which has made up $216 million (or 81 per cent) of our sales. Demand for liquor, supermarket, pharmacy, fuel, childcare and government investments, for instance, is more intense than ever and we can now demonstrate that there has been no COVID-19 related price deterioration in these sectors.
Demand for freehold investments leased to non-discretionary businesses has accelerated over the past 12 months, in particular with private ‘mum and dad’ investors looking for an alternative to the residential market attracted by greater security and long-term returns that commercial property provides. There has been a clear distinction between properties where tenants have traded through COVID-19 and those that have not. Despite a lot of broad brush negative commentary regarding the retail market, essential service businesses have been well-placed to benefit from community lockdowns.
Buyers are aware of this and recognize the ‘defensive’ qualities of these investments. We expect A-Grade properties such as Bunnings, Woolworths and Coles will continue to enjoy a status akin to a term deposit or bond.”