NICHOLS Crowder saw increases over the 2021 financial year in most sectors, with industrial unsurprisingly coming out on top.
According to Nichols Crowder’s Onwards then Upwards FY21 Market Report, the industrial sector is still the most active property market, driven by greater demand from the constructions, logistics, ecommerce and retail sectors.
Nichols Crowder recorded $174 million in sales and leases transactions in the industrial sector, an increase of 56% on FY20’s $111.8 million.
“Many of our investors, buyers, and tenants capitalised on increasing demand from storage and distribution for e-commerce growth, improved supply chain systems, and opened or retrofitted existing service-based salons, shops and boutiques to leverage lockdown and post-lockdown spending habits,” said Michael Crowder, director at Nichols Crowder.
The agency also sold almost 83,000sqm of factory and warehousing space, a 25.5% increase from the previous year’s 66,000sqm. With warehouses in excess of 250sqm dominating sales by value.
“And in terms of the industrial sector, we’re extremely confident that we’ll see more businesses eagerly snapping up buildings across the region, with the most sought after being those larger than 250sqm due to the very limited supply of stock available,” said Matt Nichols, director at Nichols Crowder.
The commercial real estate agency also reported an increase in transactions overall over the past 12 months, with 644 commercial and industrial transactions, reflecting a 17.5% increase in sales and a 5.4% increase in leasing.
“Their resilience, coupled with our swift response to market conditions and ability to appropriately forecast and manage the supply and demand of property in our local area has resulted in an incredibly strong year that we’re very proud of,” added Crowder.
Meanwhile over the period there was a significant fall in land sales, dropping from 83,000sqm to 33,000sqm, placing upwards pressure on sales value.
Within the agency’s property management business, assets under management grew by more than 5%, with vacancy levels remaining stable at 4.25%.
“Our clients put a lot of trust in our hands with what can often be their biggest asset and future wealth portfolio. Their confidence in our approach to securing the best property outcome – in what is typically considered an uncertain time – speaks volumes,” concluded Nichols.