Australian investors are turning their attention to the industrial property market.
Charter Hall Direct Property chief executive officer Richard Stacker said now is the right time to invest in industrial property due to an increase in industrial tenancy demand.
According to Mr Stacker, tenant demand coming from several major companies including large scale logistics groups such as Toll and TNT, offer buyers the chance to secure a long term lease with a quality tenant.
“That said, many would-be buyers are finding it hard to access capital, creating excellent buying opportunities for capital-ready investors who are benefiting from reduced buyer competition,” he said.
While attractive investment opportunities exist, investors are advised to move quickly in order to gain higher returns.
In the year to June 2010, 24 industrial properties sold on an average yield of 8.7 per cent, while between January and June yields fell to 8.3 per cent as property values began to climb.