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The tide is shifting in the commercial property market.
A noticeable increase in inquiries and activity suggests that buyers are making more selective decisions. This renewed interest may be driven by the recent drop in the official cash rate (OCR) by the Reserve Bank, along with the positive news that inflation has fallen to 2.2 per cent. For those involved in property, this means lower borrowing costs, a rise in buyer confidence, and ultimately more market activity.
While the overall Auckland property market remains relatively sluggish, the Hibiscus Coast commercial market has consistently demonstrated resilience due to its desirable location and high demand as limited properties come up for sale.
All three commercial sectors – office, retail, and industrial – had experienced a downturn, but recent transactions indicate a revival. We have completed several notable deals in Silverdale, including the sale of a modern, bite-sized industrial unit in Peters Way, a development site with significant land on East Coast Road, and a multi-tenanted, split-risk office investment on Silverdale Street.
Leasing has been more subdued due to the challenging economic climate, with tenants hesitant to move and new businesses cautious about long-term commitments. Despite that, we have had recent leases in Whangaparāoa.
Optimism is on the rise, and with lower interest rates starting to take effect, plus the likelihood of another OCR reduction, local business sectors are looking forward to a strong recovery in 2025.
Mustan Bagasra, Telos Commercial
