Industrial Commercial Property Takes Centre Stage

By Nick Syrimi

Industrial real estate was the best property investment performer on a national scale during the previous year, according to a recent report from the Property Council of Australia.

The Property Council/IPD Australia All Property Index showed industrial assets experienced an 11 per cent increase over 2013. The total index return reached 9.6 per cent, while office property and retail property came in at 9.7 per cent and 9.3 per cent, respectively. 

"The returns were driven by a strong year of income growth, with total income return at 7.2 per cent while capital growth was 2.2 per cent," stated a release from Property Week on the Council's official website on February 24.

"Office had the strongest showing for capital returns at 2.4 per cent while industrial dominated the income chart at 8.7 per cent."

Commercial real estate pushed property as an asset class into second place behind equities.

Investors eyeing Darwin commercial property may be interested to know that the index showed investors with both unlisted and listed property portfolios performed better than investors with only listed portfolios nationwide.

Prospective commercial property buyers should also keep in mind that demand for small- and medium-sized industrial properties in Darwin is high, something savvy investors should keep in mind while they're on the hunt for commercial real estate.

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