As the year kicks into full swing, we look to the experts and industry reporting to confirm the overall sentiment for the industrial and commercial market in 2020.
Nerida Conisbee recently wrote in her Commercial Outlook report 2020: "Industrial is my favourite commercial property type and it will continue to be my number one in 2020."
"Demand for industrial property from buyers and tenants remains red hot."
Demand for industrial property from buyers and tenants remains red hot. This is largely to do with the fact that industrial property is the main beneficiary from technological change with online retailing continuing to have the biggest influence on this property type."
With cheap finance still on the table, a strong leasing market and global instability. the Australian commercial property market was attractive for investors in 2019, and Australia looks to remain a preferred market for global capital in 2020.
Nerida continued "We know Australia is a pretty nice place to live, however, it is also a safe place to invest. There is no shortage of offshore funds, but they are increasingly finding it hard to find markets in which to invest. Tenant demand remains buoyant and, for some buyers, the weak dollar makes buying more attractive. All of this is unlikely to change in 2020.
NAB Group Chief Economist, Alan Oster, recently went on record in the NAB Quarterly Australian Commercial Property Survey report and said: "Industrial sentiment also lifted a little, and is reportedly being supported by e-commerce demand and the associated growth in supply chains, with the eastern seaboard markets leading the way."
50% of property developers indicated they plan to commence new works in the next 6 months, up sharply from just 35%
The recent NAB report went on to detail how sentiment around their key survey findings included that expectations for capital growth for the next 12-24 months are positive for office and industrial property, and negative for retail and CBD hotels.
Office and industrial property are also expected to lead the way for rental growth, with retail rents expected to fall in all eastern seaboard states over this period.
The NAB Survey also highlighted that 50% of property developers indicated they plan to commence new works in the next 6 months, up sharply from just 35% in Q3.
NAB Customer Executive Commercial Real Estate, Lucia La Bella, said: "The survey confirms the green shoots we're seeing from developers, with increased plans to start works in the short-term."
Want to know more?
For further information from both reports: