Tom McKay

The dichotomy between the residential and commercial property markets could not be starker - while residential property experiences another strong bull run (rising prices and low rental vacancies), commercial property vacancies are hitting levels in excess of the depths of the GFC. According to Jones Lang LaSalle, commercial vacancy rates are pushing 10.9% nationally and a whopping 20% in the Gold Coast. Moreover, office vacancy rates in Australia's major capitals are now on par with those of New York, Chicago, Boston, and Washington - areas hit hard by the GFC. The office downturn has led to widespread discounting, cash backs offers, and other incentives being offered by landlords in order to snare a tenant. The outlook is concerning. As the mining boom unwinds, and the economy slows, commercial vacancy rates are expected to head higher. (VIEW LINK)


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