Business owners driving Western Sydney commercial sales market: Raine & Horne

Business owners driving Western Sydney commercial sales market: Raine & Horne
Business owners driving Western Sydney commercial sales market: Raine & Horne

With interest rates at record lows, more self-managed funds are snapping up commercial assets between $2 million and $5 million in Western Sydney, although owner-occupiers remain the dominant force.

The strength of the commercial market in Sydney was illustrated through a recent deal by Raine & Horne Commercial, which sold a building at 211 John Street, Lidcombe for $4.3 million to a Honda Motor dealer. The dealership is using the freestanding 2,000 square metre industrial building, which includes a warehouse/showroom factory, as a future service centre.

The dealership beat a number of investors and developers for the property. The building has direct access to Parramatta Road and is close to Lidcombe Railway Station and the M4 Motorway.

Raine & Horne Commercial director, Industrial Services, Duarte Figueira said lower interest rates were driving up owner-occupier activity.

“Many small to medium businesses are weighing up paying a mortgage against a lease. With rates at historic lows, repaying a commercial loan and ultimately owning an asset is making plenty of sense at present,” said Figueira.

“This is a sought-after precinct and Larke Hoskins Honda will join Bunnings, Reading Cinemas, Anaconda, Costco, Woolworths, ALDI and many other retailers who have decided to set up shop here.

“We’re seeing a stream of businesses operating in flat pack furniture and flat pack bathrooms looking to secure properties in our region. They are usually businesses with 30 staff or less – although we are seeing some bigger businesses buying commercial space too.”

Apart from low interest rates, western Sydney’s improved infrastructure is attracting businesses out of CBDs such as Sydney, Parramatta, and even North Sydney according to Duarte.

Tags: 
Interest Rates Commercial Sales

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