Investors driving surge
Sales volumes were considerably higher in the first quarter relative to 2012 as the cost of debt hit a new low and buyers chased prime commercial property investment yields of up to 8 per cent, CBRE's Justin Clarkson said.
Mr Clarkson said while established syndicators such as Australian Property Network, Cyre Trilogy, Vantage, Arena and Property Bank were all active in the market, a large number of new players were emerging.
They include Centennial Property Group, Heathley, Forza Capital, and Corval Partners.
The depth of interest and relative shortage of opportunities would place downward pressure on yields, he said. Significant transactions include the $7.7 million sale of 13 Compark Circuit, Mulgrave, and $16 million for the Vic Roads building at 12 Lakeside Drive, Burwood East.
Investors were continuing to favour fully leased stock given the continued caution in relation to risk, CBRE reports.
Rents within Melbourne's inner east A-grade office stock have risen 4 per cent this year to an indicative range of $300 to $340 per square metre net, with incentives having stabilised to approximately 10 per cent net, CBRE said.
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According to CBRE, syndicators and high‑net‑worth private investors are driving the pickup in activity. Sales volumes rose in the first quarter as the cost of debt hit a new low and buyers chased prime commercial property yields of up to 8%.
CBRE notes established syndicators such as Australian Property Network, Cyre Trilogy, Vantage, Arena and Property Bank are active, and a number of new players have emerged, including Centennial Property Group, Heathley, Forza Capital and Corval Partners.
CBRE reports that sales volumes were considerably higher in the first quarter compared with 2012, reflecting stronger investor demand as borrowing costs fell.
Buyers have been chasing prime commercial property investment yields of up to around 8%, according to CBRE commentary in the report.
CBRE says the depth of investor interest combined with a relative shortage of opportunities is likely to place downward pressure on yields.
Investors are favouring fully leased stock, reflecting continued caution around risk and a preference for income‑secure assets.
Significant transactions highlighted by CBRE include the $7.7 million sale of 13 Compark Circuit, Mulgrave, and the $16 million sale of the VicRoads building at 12 Lakeside Drive, Burwood East.
CBRE reports rents in Melbourne’s inner‑east A‑grade office stock have risen about 4% this year to an indicative net range of $300 to $340 per square metre, with incentives stabilised at approximately 10% net.
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