Mark Nicholls of Raine & Horne Commercial Canberra says the industrial market remains strong in the ACT. The lack of standalone warehouses for sale, and a limited supply of industrial zoned land being released by the ACT Government, continues to drive values up. “This is creating further pressure for owner occupiers seeking a functional and affordable premises to operate their business,” says Mark. The office and retail markets across Canberra remain stable with a steady supply of stock and take-up in mixed use developments. Despite interest rate increases and rising council rates, passive buyers are continuing to invest in commercial property assets in the ACT, especially when new NET leases are offered and values are sub-$1.8 million, reflecting the stamp duty-free threshold in the ACT. “Raine & Horne Commercial Canberra have not seen many owners being forced to sell due to the pressures of higher interest rates and a cost-of-living squeeze,” says Mark. “While we have seen very few mortgagee in possession sales, we expect affordability to drive a higher level of activity in the leasing market through 2024.” Mark Nicholls mark.nicholls@canberra.rhc.com.au Canberra Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $350-$600 $200-$400 $400-$950 Vacancy 9.5% 1-2% n/a Yields 6-7.5% 5-6.5% 5.5-7% Rates p/m² $4,000-$6,000 $3,000-$4,500 $6,000-$12,000 Current market conditions $2,000,000 Units 181 & 182/8 Gribble Street, Gungahlin Recent Notable Transactions SOLD $2,496,000 Units 2 & 3/49 Mort Street, Braddon SOLD Australian Capital Territory | 09
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