Commercial Market Update Q4, 2018


Activity in the commercial sector is on track to exceed last years results with several large deals expected to hit the table over the next few weeks.

So far in 2018, we've recorded $15.0bn of commercial property transactions vs $13.6 bn for the same period last year, an increase of 10%. Whilst we don't expect this December to beat last year's record $2.4bn level of activity, there are a number of significant transactions that are close to be secured including; $500m for Brookfield's two Shelley Street assets, $200m for 737 Bourke Street in Docklands and $300m for 595 Collins Street.

A much higher portion of metropolitan assets in the 4th Quarter for 2018, principally following Centuria's acquisition of the Hines portfolio, has contributed to the softer WACR, down 20bps to 5.7% and a lower average capital value.

Other noteable metropolitan sales so far this quarter were Growthpoint's acquisiton of 100 Skyring Terrace for $250m, Mapltree's acquisition of 67 Albert Street Chatswood for $158M, and UOL Group's acquisition of 72 Christie Street for $154m.

CBD sales so far this quarter have focused on Brisbane and Parramatta with Charter Hall's acquisition of 61 Mary Street for $275m, and 85 George St for $60m and Blackrocks acquisition of 91 Philip Street, Parramatta for $56m.

#CommercialData

Capital Management Australia

PO Box R1254

SYDNEY   NSW   1225

Tel: +61 412 173 476

Email: warwick@cmaust.com

ABN: 32 610 910 819

AFSL: 493605

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