The 2024 H2 edition of Raine & Horne Commercial Insights iMagazine is now available.
AT A GLANCE: KEY MARKET DRIVERS
INTEREST RATES - Interest rates in Australia continue to be low in relative terms. However, the increased cost of money is challenging the decision for Small to Medium Enterprises (SME’s) that are considering purchasing their own premises rather than leasing. This is despite the many advantages of ownership both from an investment perspective, as well as tax incentives.
ASSET ASSURANCE - Investors in the market are increasingly considering rent review mechanisms as well as the cost of finance, which are particularly important to be understood in the short and long term. These purchasers are increasingly looking to secure reviews to market as frequently as possible to off-set inflation and the increased cost of debt and looking to the long term, rather than potential short gains.
RETURN TO THE OFFICE - The office market including business parks and CBDs is continuing to innovate to attract people back into the office. Employers are reassessing their office strategies resulting in different solutions to attract people back. These include a flight to newer buildings, reconfiguring their fit-outs and for larger employers sourcing multiple locations, in addition to offering some level of hybrid working.
TIGHT SUPPLY - Industrial property is proving to be the most tightly-held sector of the market. As a result, demand for industrial space is continuing to drive rents upward. With a limited supply of land and available premises, rents will continue to rise and this in turn is fuelling investor demand.
Click here to read more in the Q2-2022 Raine & Horne Commercial Insights iMag.
