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Commercial real estate agents are expected to be the big winners in 2010, Raine and Horne has said.
According to the real estate company, the commercial property market is expected to go from strength to strength as investors and superannuation companies continue to rebalance away from other asset classes such as shares and fixed interest.
That you can see and touch a commercial property is proving very attractive to investors,” Raine and Horne Commercial Bondi Junction director Geoff Laing said.
"We are also likely to see more money coming from overseas, particularly Asia. An example of this is South Korea's Carlyle Group's decision to buy Sydney's landmark Aurora Place.
"Occupancy rates have held up relatively well across commercial, industrial, office and retail and I think this will continue in 2010.
"In the Bondi Junction CBD core, the vacancy levels, particularly office space, are quite low compared with total capacity. Retail leasing is in good shape with a number of national and international franchise groups (particularly from the food sector) competing for sites in Bondi Junction.
As a region, Mr Laing says the Eastern Suburbs commercial market is tightly held and this will underpin prices in 2010.
"Commercial property in the Eastern Suburbs doesn't turn over regularly as investors tend to pursue a long term buy and hold strategy," Mr Laing said.
"Many of the limited sales in the east occur as a result of a deceased estate or the splitting of assets following a family law court decision. The retail market in Bondi Junction represents a very small foot print of land, so getting what you want as an owner-occupier or investor is relatively difficult. If there is a sniff of a sale or a development, you'll have strong support from investors and owner-occupiers.”
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