During 2011, you should start to see private investors re-enter the market for industrial property, following a fall in vacancies during last year — down some 30% in Melbourne.
A Knight Frank survey shows around 300,000 sq metres of space was absorbed … bringing the overall vacancy rate down to under 3% for industrial property.
Furthermore, Savills’ research confirms there was more than $290 million in styles of property value over $20 million. And this is well above the 10 year average of 176 million per annum.
According, to Clare Cupitt (Savills’ associate director of research): “We have also seen a marked increase in acquisitions from developers, representing 27% of transactions.”
Apparently, this is up from just 6% in September 2009. And prime yields now range between 8% and 9% for the north-west and south-east of Melbourne; and between 7.75% and 8.75% within the city fringe.