How Canberra’s commercial market has fared during the coronavirus pandemic: HTW
Prior to the Coronavirus pandemic, the industrial market throughout Canberra was improving with broad demand from investors and owner-occupiers across most industrial precincts, according to the latest report from valuation firm Herron Todd White.
This resurgence has been particularly strong in Fyshwick.
“There is no doubt the current situation will set the market back, however our view is that Canberra is historically such a stable market outside of election cycles that in the current political climate the market will be well positioned to weather the storm and recover relatively quickly after the dust has settled,” said the firm in their April Month-in-Review report.
“In the interim, until the path for recovery has been laid out and the market is confident a bottom has been reached, we do expect some pain with sales and leasing activity to stall.” The boost that the hail storm provided to industrial leasing activity earlier in the year is expected to dissipate as vacant properties sit idle.
The market during this period of time will be skewed as it will be only financially exposed landlords who will be required to sell or enter into subleases at a discount.
“Herron Todd White’s commercial valuation team in Canberra is closely monitoring any sales and subleasing activity over this period of time as knowing all the details will be very important.”
As has been seen in all regions, the firm predicted that the disruption of global supply chains caused by the extended suspension of manufacturing in China may be seen as an opportunity for suppliers to establish local manufacturing facilities, while the rapid increase in online retailing which was already trending upwards may sustain and lead to increased demand for warehouse distribution centres.
“Nevertheless, it is uncertain how persistent and long-lasting the effects of the Coronavirus will be and at what point the global economy will begin to grow again,” the report concluded.