NSW commercial sector looking 'optimistic'
New South Wales' commercial property sector is tipped to enjoy a flurry of activity over the ...
New South Wales' commercial property sector is tipped to enjoy a flurry of activity over the next 21 months - a forecast that may be welcomed by investors.
According to the NAB Commercial Property Index, released February 22, NSW is tipped to be the best performing state by the end of 2014, while Western Australia was identified as the strongest market currently.
The index increased slightly in the December quarter, underpinned by growth in the CBD hotel sector, which increased 1.7 per cent during the three months.
And the hotel sector is expected to continue driving the commercial property market, with the report forecasting a three per cent growth by the end of this year, and four per cent by the December quarter in 2014.
Investors with leased industrial property around the country can expect to see rents lift 1.7 per cent by the end of next year, while retail tenants are tipped to see rents decrease 1.5 per cent in the next year.
The report went on to state that the country's commercial office property sector will remain 'neutral' across the board over the next 1 to five years, while the industrial market will tighten in the next three to five years.