Anthony Bouteris, Co-Principal at Raine & Horne Commercial Sutherland Shire says industrial sales are going from strength to strength.
Delivering robust yields of 5.0%, industrial buildings were spending very few days on the market. Most notably, a 15-year-old factory unit in Northumberland Drive in Caringbah, with a 10-year lease and a five year option, and a net rent of $180,000 per annum, sold for $3.2 million in just two weeks.
Sales under $5 million were mainly driven by local investors and self-managed super funds. Sales in this price range were achieving yields between 4.5 to 5.0 %.
After one week on the market, a free-standing 500 square metre building was snapped up for $1,975,000. Situated on 740 square metres of land, number 20 Erskine Road, Caringbah had a two-year lease, with a five-year option.
According to Anthony, a lack of stock is an issue within the office market so people considering selling office space should make that leap.
Meanwhile, yields in the retail market were between 5.0 – 6.0 %, with little change in the past 12 months.