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Suburban retail popularity arises

By Sarah Lefebvre on Aug 29 2016


Suburban retail popularity arises

The residential construction boom has helped revive the popularity of small suburban retail assets. Strip and strata retail properties that sit within a new apartment complex or housing estate have proved the most attractive to private buyers. The majority of these assets have sold to investors; however, local business owners are also taking advantage of record low interest rates to acquire a shop front for their businesses.
 
This month’s market update report looks at the rise in suburban retail assets.
 
Key Findings
• $1.9 billion worth of retail property sales took place in FY 2016.
 
• The value of sales grew 24% from FY 2015 to FY 2016.
 
• Private investors looking for small suburban retail assets have ramped up acquisition activity.
 
• Low interest rates and attractive yields are expected to keep buyer demand elevated over the next 12-months.