Local Investors Shine in Commercial Property

Local Hunter and Newcastle investors have been the stand-outs in a recent analysis of investment sales.

In a survey of (8) commercial and industrial investment property sales representing $16,000,000 in value (75%) of the total were purchased by locals.

Yields varied from a low of (8,5%) to (11%) and reflected variations in the quality of tenants and length of leases.

Of the (8) sales investigated (3) were described as distressed and representing bank mortgagee in possession work.

The sales had a price range of $850,000 to $4,300,000 with the age of the buildings varying from new to (80) years of age for a Hunter Street Newcastle strata property.

Local investors understand the Hunter Region and have confidence in the area.  This is because Hunter has a strong local and diversified economy, good employment and exposure to the resources sector.

In an environment of low interest rates and stock market volatility cashed up buyers should look to real estate investment property in the Newcastle and Hunter Valley areas  as a great time to purchase!

The main problem is a lack of new investment property grade stock in the Newcastle and Hunter Region.  With developers under pressure and a tight credit environment we cant supply enough good buildings to satisfy demand.

Alan Tonks
Commercial/Industrial Investment Specialist

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