Marketplace 2021

Already we are a month into the new year, and there are patterns emerging. Whether they continue is anyone’s guess, but here are our observations from our time back in the office this year.

Interest rates are continuing to be a dominating factor. As fixed term deposits roll over and investors find banks offering sub 1% rates, they are turning to an exploration of commercial/industrial property. The problem then being that there really isn’t any! Even with yields generally sub 5%, there is very little available stock.

We are also seeing significant vendor indecision. Being unable to make up their mind whether they really want to sell or not is a common theme. Or perhaps it is simply agents floating imaginary boats?

On the tenant front there seems to be ample demand. With low vacancy rates many prospective tenants are demonstrating increased flexibility as to location. If they can’t find the right building in their preferred suburb, very often we are finding they are much more open to looking further afield.

With regard to agents, the common theme is the number of agents who , over the course of the festive season, have totally forgotten the basic skill of qualification of prospects. Hopefully as they belatedly fully return to work mode the skill will return.