- Given the more positive market dynamics and low interest rate environment, investor activity remains strong. Prime average yields firmed 33bp between Q3 2019 and Q3 2018.Secondary average yields firmed a further 21bp.
- Rental rates have quickly stabilised after softening slightly in the first half of the year from the disruption of COVID-19. Competition for tenants from developers promoting design build projects is providing some extremely competitive market rental levels.
- Development activity has eased, with building consent issuance over the 12 months to September approving approximately 181,500 sq m of new floorspace across the region, the lowest figure recorded since 2012. A recent increase in land sales however, may be a lead indicator of a renewed lift in construction activity.
- Colliers International’s Q320 Investor Confidence survey shows sentiment in the region’s industrial sector has rebounded. The sector registered a net positive (optimists minus pessimists) score of 21 per cent, equalling the Q319 score, and well up from the net positive 5 per cent recorded in the Q2 2020 survey.
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