Industrial Property Investment Strong Last Year
Industrial property was one of Australia’s key investment assets during 2013, according to CBRE.
The organisation’s Australia Industrial MarketView report showed investment levels in the industrial property sector reached a six-year high during the previous year. The fourth quarter of 2013 saw investment turnover increase 22 per cent.
“Industrial yields have been supported by growth amongst logistics and distribution related assets, which are typically perceived as lower risk by investors,” said CBRE Associate Director of Research Claire Cupitt in a March 4 media release.
“The higher yields on offer in the industrial sector, compared to assets in other markets, have captured the interest of investors, particularly so given the positive outlook for rental growth in 2014.”
Potential for rental growth could mean greater activity regarding commercial lease in Darwin.
In addition to the industrial sector, investors looking at Darwin commercial property should also keep an eye on retail space, as recent data shows retail trade in the Northern Territory has risen for the ninth consecutive month.
Retail trade in the Territory increased 0.3 per cent in trend terms during January on a month-over-month basis. This is especially favourable news, as nearly 10 per cent of the NT workforce is employed in retailing, according to NT Treasurer Dave Tollner.