Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

CBD office yields to soften but markets will remain strong

Staff Reporter 1 minute read

The credit squeeze may result in some easing of investment yields in domestic CBD office markets but is unlikely to result in an oversupply of investment stock, according to research by Colliers International.

“Given that we are coming off a very tight market it is unlikely we will see an oversupply but rather a more dynamic secondary market providing opportunities for cashed up buyers, such as wholesale funds, super funds, high net worth individuals and investor/developers, to add value,” Collier’s director of commercial research (NSW) Felice Spark said.

“This will see some easing of yields but it is more likely to be in secondary grades as low vacancies and strong rental growth continue to attract a high level of investor interest in and competition for premium stock,” she said.

Collier’s research also revealed that vacancy rates are continuing to remain at record lows. With new supply likely to be delayed due to the rising cost of debt and sharemarket volatility pushing construction dates for new projects back, CBD markets are likely to remain tight.

Published: 07-03-08

CBD office yields to soften but markets will remain strong
default
TheAdviser logo
default

 

more from the adviser
ASIC TA ASIC to update ACL process following security breach

The financial services regulator is working on “alternative arr...

money au ta Lenders extend cashback offers

Several lenders and their subsidiaries have extended their cashba...

ren wong N1 pivots to become SME lender

Diversified broking and non-bank lending group N1 Holdings has an...

FROM THE WEB