Vacancy rates are forecast to fall in the office and retail property sectors, according to the latest NAB Commercial Property Survey, which is positive news for investors.
The national office vacancy rate, which is currently at a high 11.2%, is expected to fall to a more moderate 10.1% within the next two years. Meanwhile, the retail vacancy rate is forecast to fall from 6.4% to 5.8% during that time.
The NAB survey gets feedback from property professionals, owners and investors. The red text represents the most recent forecasts, while the black text represents earlier forecasts.
Asset selection is important at any time – but in the current office and retail markets, where tenants have a lot of choice, it’s even more important.
B-grade assets are struggling to attract tenants, which is putting downward pressure on rents. However, A-grade assets, which have some scarcity about them, are still in demand, which is putting upward pressure on rents.
