Shopping Centre Yields Trending Down
A lack of confidence in the stock market and low returns available from traditional banking deposits has seen a significant move of investment capital either directly or indirectly towards retail investment property.
Retail property has proven to be largely recession proof and offers Investors comparatively healthy returns.
Shopping centre sales on the East Coast in recent months have been showing yields of between 6.5% to 8.0% dependent upon tenancy mix, age and location.
In Western Australia, a Porter Commercial managed centre, Champion Drive Shopping Centre, Armadale, has just transacted at $13.5 million showing a yield of 7.5%. This is a 4,616 square metre centre anchored by Coles Supermarket and 18 speciality stores.
The Craigie Plaza Shopping Centre, to the North of Perth, transacted in July 2015 at $10.8 million reflecting a yield of 6.99%. This centre comprises an IGA Supermarket and 16 specialty stores totalling 2,932.3 square metres.
In the country, the Coles Supermarket at Tom Price transacted in December 2014 at $6 million showing an initial yield of 9.32%.
We are anticipating that continued low Interest Rates and an uncertain economic climate will see ongoing strong demand for securely leased properties with a diversity of income streams.
Porter Commercial asset manage an extensive portfolio of retail investment property and offer authoritive consultancy to prospective Buyers and Sellers.