Revival of commercial property market continues: First National

The 2013 commercial property market continues its trend of revival with increased activity levels and record sales, according to First National Real Estate’s Mid Year Outlook.

However, the growing trend for tenant incentives - in the form of discounting - is expected to continue into the second half of 2013, according to 68% cent of First National commercial members.

“Commercial tenants have the upper hand in current conditions, with landlords resorting to offering tenant incentives of up to 30% across the Melbourne, Sydney and Brisbane office markets in a bid to retain them,” CEO Ray Ellis says.

According to the survey, members expect the rural/regional property market to perform steadily over the coming six months, however, there is still residual weakness from the recent difficult market conditions.

“The subdued market is seen as the result of the ongoing tough post-GFC lending conditions, supply and demand ratios, and the low interest rates that are propping up the market,” Ellis says.