Lismore industrial rental market remains static: HTW

Lismore industrial rental market remains static: HTW
Lismore industrial rental market remains static: HTW

The Lismore industrial market is dominated by older style industrial development, according to the latest report from Herron Todd White (HTW).

The financial valuers found it comprises a mix of small to medium sized owner-occupied sheds and a scattering of larger complexes generally of a modest style and appeal.

As such, the found industrial properties tend to be sub- $500,000 for stand alone, single or twin tenanted properties.

When purchased by investors, they expect yields of 7-9% return with the lower yields more likely to be owner-occupiers where yield and return are not the driving factors.

The report authors noted,:"Larger complexes would tend to be eight per cent to 10.5%, however they are rarely transacted."

"Investors are less active in this market as yields tend to be relatively low compared to risk.

"This is a result of the owner-occupier market driving yields down and is compounded by the fact that the rental market is static.

"Despite this, Lismore’s industrial market is mature and tenants are relatively stable with well established businesses, not adversely impacted by the upward pressure on rents being experienced in coastal localities. As such the industrial economy has tended to avoid the boom and bust cycle."

A current listing on the rental market is a North Lismore 280 square metre storage shed (pictured below) priced at $1,278 per month.

The industrial shed at 1/67 Bridge Street features double sliding doors, high ceilings in the first floor and toilet amenities. 

It is located within close proximity to the town.

Lismore industrial rental market remains static: HTW

Another new offering is a South Lismore brick warehouse (pictured below) priced at $800 per week.

Located within an industrial complex, the warehouse at 2/30-32 Habib Drive comes with high roller door and wide driveway allowing easy access. 

Lismore industrial rental market remains static: HTW

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Lismore Herron Todd White

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