Posted by: Charles Stewart - Real Estate

Commercial Sales at a 15-Year High

15th July 2022

Colac’s commercial sector is experiencing a 15 year high with demand from investors continuing well into 2022.

Charles Stewart’s commercial agent Anthony McDonald has experienced a strong start to the year, finalising the sale of more than six commercial properties within the first half of the year.

Ranging from smaller shopfronts and offices within the CBD to industrial sheds and workshops, the response to all listings has been solid.

“I have never seen so much inquiry from investors seeking good quality income-producing assets.  During the recent period of a low-interest rate environment, they are driven to find a property that will deliver them consistent income with low risk,” said Anthony.

Earlier in the year, Colac’s 48 Rae Street sold at auction in Melbourne, with 26 registered bidders for $970,000 registering a yield rate of 3.82%, the sharpest ever achieved in Colac and one of the lowest seen in regional Victoria. Tenanted to ASX listed company Reece Limited, the property was sold with a five-year lease and option for a further five years.  

In addition, Colac vacancy rates are at their lowest in a long time, providing plenty of confidence for commercial investors and businesses alike.

Contributing to this downturn is a large number of new lease agreements that have taken place over the last six months. A combination of new businesses opening and existing businesses looking to upsize reflect the movement, a promising sign for the town’s growth.

“The vacancy rate for retail and industrial property in Colac is now lower than it has been in many years. There has been a resurgence in business in central Colac and many new businesses have opened, with the greatest shortage currently industrial land and warehouses,” said Anthony.

Visit the Charles Stewart website to view our current commercial property listings.

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