Optimism has returned to Australia’s office, industrial and retail sectors going into 2024, according to Colliers.
Colliers Australia CEO, Malcolm Tyson, said office assets are seeing renewed interest.
“Premium office rents and investor appetite will continue to elevate this asset class above the rest of the sector, with the yield spread between Premium and A-Grade assets set to expand,” he said.
“Similarly, the spread between Premium and B-Grade office asset yields is likely to expand, as appropriate risk and costs are priced back into purchasing decisions.”
Mr Tyson said the resilience of the industrial market is due to tight incentives, low vacancy, and rental growth.
“We predict rental growth for a market that is currently renowned for the tightest vacancy rate globally (one per cent) and will continue to exceed the historical average rate, since 50% of industrial supply for 2024 is already pre-committed.”
