Perth’s industrial land market is set to rebound from a subdued 2013, as Western Australia’s strong economic fundamentals attract interest from institutional investors, new research from Colliers International says.
Colliers’ Industrial Research and Forecast Report, released today, shows rents increased and yields tightened in 2013 in comparison to other major capitals, despite a relatively quiet industrial rental and investment market.
The commercial agency’s director of industrial, Wayne Chorley, said stock at the top end of the market remained particularly tight in Perth, with demand for larger industrial assets increasing.
He said the resilience of the market had attracted the interest of major institutional investors.
“Those top-end players have made it clear that they are in the market for industrial property, with both prime investment stock and land for pre-lease in their sights, and WA assets are high on the list,” Mr Chorley said.
The report showed the industrial property market in Perth was no longer largely dependent on the fortunes of the resources sector, with demand set to grow in the retail and construction sectors in particular.
“Institutional investors are looking at what remain reasonably strong forecasts and a build-up of capital, and its pushing up their level of interest in the WA market,” Mr Chorley said.
“As a result, we’re seeing a number of them looking to enter or increase their exposure to the Perth industrial sector.
“At the same time, we’re now seeing the first green shoots and stirrings of activity in that smaller end of the market, which had been quiet for much of this year, so the signs are there that the market across the board is beginning to gear up again.
“Unlike some other capitals around the country, the Perth market has held its ground through a quieter period. When that momentum shifts and picks up strength, the outlook is bright.”