Commercial property landscape adapting to national economic trends

The commercial property market continues to navigate the complexities of the national landscape in early 2024, with the shifting developments of the nature of working, shortages in supplies, and interest rates all playing a role in this evolving picture of property into the future.

Research currently points in an array of directions as buyers and businesses look to optimize their strategy, from acquisition and leasing, to businesses requiring office space and the need for shop front presence for retailers.

At the forefront of this remains interest rates, with confidence steadily mounting that inflation is set to ease in the coming year and reach the RBA’s 2-3% mark, allowing for rates to either hold or decrease, increasing disposable income for many households.

Looking back at the previous quarter, property vacancy rates rose from 12.8 to 13.5% in CBD regions, whilst suburban areas climbed from 17.3 to 17.9%, suggesting that affordability remains an uncertainty, alongside more businesses adopting a remote working strategy and relinquishing their shop front presence.

What the aforementioned elements cultivate is a more sound relationship between landlord and tenants, to ensure that all parties' needs are met and voices are heard when it comes to the relationship. As for spaces, this can be seen with businesses rethinking the purpose of their office, and the fitment meeting those needs.

With the post Covid trends now setting in as the new ‘normal’ - which is vastly different from the pre Covid environment, those who succeed are those who are prepared to adapt to this change, and forging a strengthened connection to the tenant is a key component of this process.

From a commercial property perspective, the Devine Property team has the following listing available for purchase in Tasmania, which provides a great opportunity for both buyers and tenants alike to develop the flexible relationship thanks to the divisive nature of the space and opportunity for short term leases.

Additionally, located in the heart of Hobart’s CBD, foot traffic is at a premium, with the dual frontage attracting both pedestrian and vehicular attention. Architecturally designed by Hartley Wilson Oldmeadow Eastman Walch Architects in 1890, this property provides the occupant with a rich piece of Tasmanian history.

The commercial property market is undoubtedly subjected to change as the post Covid world continues to redefine how we work, alongside high interest rates forcing businesses to rethink their commitment to physical space. 

The opportunity lies in the relationship that can be developed between tenant and vendor, with each party needing to strike a balance that appeases their objectives.