Raine & Horne Industrial Average Just Released

Once a year the big talk in property circles is about is about the Property Council’s Office Market indicator. Yet is this a true reflection of the state of our regional economy? The focus has always been about the CBD of Newcastle when the majority of the people of the region rarely if ever come into the centre of Newcastle. Raine & Horne Commercial Newcastle has just released its half year indicator on the state of the industrial suburbs of the Lower Hunter.

The Raine & Horne Industrial Average looks at the major industrial estates of the region, which are the fundamental employment zones, reflecting the true state of the regional economy by measuring their vacancy factors. In the suburbs each square metre of factory space represents part of a job. So movements in the Average indicate where unemployment and the economy are heading in real time.

The overall average is indicating a slight improvement from 7.6% in January 15 to 7.3% in June 15 with the largest positive improvements occurring in Thornton, absorbing almost 3%, Tomago Hexham 2.5% and Rutherford 2.4% of the floor space. Warabrook and Mayfield West were the worst, performing suburbs adding 3.2% and 9% to the vacant space in those suburbs.

It can be seen the mining and manufacturing suburbs of Tomago, Beresfield, Thornton and Rutherford have all improved whilst the service suburbs of Cardiff, Mayfield West, Sandgate, Warabrook and Wickham have increased their available floor space.

Whilst the average is moving in the right direction however we need a longer period of sustained improvement as the Average is still nearly double that of the heady days of early 2013.

Steven Dick
Director Raine & Horne Commercial

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