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With 2024 now in full swing, confidence in the commercial sector is on the up.
With a number of groups planning for auction events over the coming months, there’s plenty of positivity surrounding Australia’s commercial markets.
Raine & Horne Commercial will be showcasing 15 commercial properties at a national auction event on 14 March, while Burgess Rawson will be auctioning off a portfolio of more than 25 assets on 20 and 21 February.
Both events are touting properties across the breadth of the country, with a mix of industrial, office, healthcare, early education, government and retail assets, to name a few.
It’s an excellent time for the commercial market, according to Raine & Horne Commercial’s Chris Nicholl, the commercial network head, who noted the Reserve Bank’s decision to maintain interest rates and the positive CPI data is having a positive flow-on effect into the sector.
That’s translated to market activity in the early days of 2024, especially when compared with the back end of 2023, with Mr Nicholl expressing the belief that “both buyers and sellers have greater clarity with respect to the market and are more confident as a result”.
It’s a sentiment shared by AuctionWORKS’ Jesse Davidson, who said “the stability in interest rates is fostering confidence, particularly in smaller industrial markets”.
“Last year, rising rates led to a slowdown in this market, especially from small business.”
Mr Davidson, who will be the auctioneer at Raine & Horne Commercial’s event, noted that with enquiries for commercial auctions being “outstanding” in the first four to six weeks of the year, it augurs well for a national auction event.
He believes a shortage of quality commercial property stock is set to continue driving strong enquiries from buyers all the way through to Easter.
Health appears to be a major theme of the upcoming auctions, with Burgess Rawson listing the likes of the St Kilda Day Hospital and St Kilda South Medical Centre, while St John of God Health Care is looking to offload a strategic industrial investment in Ballarat’s Wendouree.
According to the firm, there’s been “significant interest from investors across the country within days of listing”.
Burgess Rawson’s Beau Coulter said they have been witnessing strong demand for healthcare centres. He explained that investors are “drawn to stability of tenure and important ‘essential’ services provided by medical and specialised medical facilities”.
Raine & Horne Commercial Macarthur managing director, Daniel Krobot, also acknowledged he has received a number of enquiries for an industrial-zoned office property in Gregory Hills, predominantly from owner-occupiers seeking space for either professional services business or medical uses.
“We also anticipate interest from developers attracted by the 32-metre allowable height limit,” he stated.
All in all, Mr Krobot expressed that “the primary concern in the industrial property sector remains the lack of supply, particularly as buyer enquiries have surged by approximately 20 per cent compared to the same period last year”.
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