Spotlight on Malaga

Commercial,IndustrialThursday 13 August 2015
Property-Blog

Sales

Supply

  • – Supply normal for established strata units 100-400sqm with continued shortage of new unit supply
  • – Vacant land supply down to remaining lots (17) in the Freeway Industrial Estate, Malaga. Minimal supply of other land in the area (2-3 lots)
  • – Long term leased investments tightly held particularly green title offerings
  • – Supply of vacant buildings 1,000-1,500sqm low but with a few good opportunities in the 2,000-2,500sqm range

Demand

  • – Investment demand strong but focus on 5 year + terms particularly established stable lessees
  • – Vacant land sale rates down but interest to investigate owner occupier development on the improve
  • – Demand still unusually soft for 500-1,000sqm buildings
  • – Small unit demand 100-300sqm on the increase with affordability of interest rates starting to drive positive buyer interest in this segment
  • – Buyers looking for opportunities to capitalise in current economic climate.
  • Leasing

    Supply

    • – Greater opportunities to secure a modern premises
    • – Buildings over 1,500sqm showing availability in the area
    • – New supply of buildings has been slow, small amount of new buildings available for lease this year
    • – Increased supply of older buildings and tenants expecting further discounts off rents

    Demand

  • – Reduced amount of active tenants in market place
  • – Greater demand for workshops and properties with low office component
  • – Newly constructed buildings seeing greater activity
  • – Tenants taking extended periods of time to make decisions.
  • Click for the: Land Values Graph

    Click for the: Rental Levels Graph

    For further information on the current market activity, contact:

    Chad Henville
    Director
    0413 116 835
    chenville@burgessrawson.com.au

    Ben Flanagan
    Sales & Leasing Consultant
    0405 929 167
    bflanagan@burgessrawson.com.au

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