Commercial property investors are eyeing up the NSW community of Tweed.
The latest Ray White Between the Lines report suggests conditions are in line in Tweed. A robust growing population and investment into new infrastructure projects have resulted in a pick-up in commercial property development.
Interest in the area has also spiked from out-of-town investors. This is due to record-low interest rates and attractive investment returns, Ray White head of research Vanessa Rader said.
“The Tweed region is an established commercial market that offers a mix of industrial product, retail both in showroom assets and strip retail, as well as office accommodation,” she said.
“This has historically been a very locally driven market with a high volume of sales transacting to local investors, developers and a growing number of small businesses looking for owner occupations.”
There is more growth in the northeast NSW community, with state investment in the region attracting people to the area, Ray White commercial sales and leasing specialist Aaron Neylan said.
“While traditional private investors have actively invested into the local economy, state investment into infrastructure has spurred on buyers from further afield looking to take advantage of competitive yields in this improving economy,” he said.
The industrial market offers a range of options, from older-style factory warehouses to smaller, modern industrial unit complexes, Mr Neylan said.
“Current net face rents for industrial stock average $125 per square metre, but they can range from as low as $70 per square metre up to $170 per square metre depending on its size, quality and access.
“Given the continued growth in this segment of the market, there has been limited scope for growth in the overall average; however, new assets regularly push the upper rental limits.”