- Over $8.55 billion in commercial transactions across office, industrial and retail markets occurred during the March 2022 quarter
- This is higher than the $8.09 billion recorded during March 2021 quarter
- Sales for retail assets fell, according to m3property
Investor demand for commercial property continues to soar, with the total value of commercial sales reaching significant highs.
According to m3property, over $8.55 billion in transactions occurred across the office, industrial and retail markets during the March 2022 quarter – higher than the $8.09 billion recorded during the same period in 2021.
M3property’s National Research Specialist, Casey Robinson, noted that industrial and office sales soar while retail fell.
“The total value of industrial sales rose by a whopping 74% with $3.294 billion in sales while office sales grew by 32% from $3.47 billion to $4.55 billion,” she said.
“Retail property recorded about $1.7 billion in sales over the March quarter, dropping 25% from the March quarter 2021.”
Major deals
Notable sales include Darwin’s Casuarina Square shopping centre, which was acquired by Sentinel Property from GPT Wholesale Shopping Centres Fund for $397 million.
The Blue Tower office building in Brisbane sold for $391 million. Dexus said the disinvestment will facilitate the redirection of capital into their deployment pipeline, including the Waterfront Brisbane development.
It also wasn’t just individual commercial properties that sold well – portfolios did too.
GIC and Centuria acquired the retail component of the $1.1 billion West Village development in Brisbane in an off-market deal for around $202 million. This included not just existing properties, but future assets that are to be constructed.
Spirit Super also acquired Parliament Square in Hobart for $383 million.
“Offshore buyers were the most active purchasers of office stock in the March quarter, making up 47% of the total, with Institutions following at 25% and REIT’s next with a 20% stake in the total,” added Ms Robinson.
“Institutions favoured retail assets making up for 44% of the total value of transactions while private investors took a shine to retail property with a 37% claim of the total.”
