The Commercial Collection Q4 2023

Q4 | 2023

Newcastle and Hunter region

Commercial and Industrial OPPORTUNITIES

Welcome to the Q4 edition of the Commercial Collection, highlighting the latest range of commercial and industrial property opportunities available with Commercial Collective.

We have recently partnered with Stamford Capital, Australia’s leading commercial brokerage, to further provide our clients with the full range of services required for a successful commercial property transaction. We are pleased to share their financial insights about today’s commercial property environment.

The commercial property market has now caught up to the continuous cash rate increases over the past 14 months and the full impact of the uplift on the market is now being seen. Highly geared Commercial Real Estate (CRE) loans have been left exposed and some borrowers have been at risk of breaching lenders’ Interest Coverage Ratio (ICR) requirements. ICR has become the new hurdle in accessing debt.

Despite uncertainty remaining in market, the more recent five cash rate holds have returned some borrower confidence as borrowing costs have stabilised. Lenders’ benchmark rates have come down 0.50% from their peak, assisting with ICR compliance.

Even as we await the next RBA announcement, tipped to raise on Cup Day, experts agree that we are close to the peak cash rate, assisting to lift borrower and lender confidence.

In today’s market, non-banks are stepping up where banks have been unable to, offering higher leverage and less conditionality, with the percentage of transactions with non-bank lenders growing from just under 50% in FY20 to just under 80% last financial year.

Newcastle is viewed positively in the lending market, considered to be one of the stronger regional centres in Australia, due to its population growth, ties to industry and proximity to Sydney. Several large-scale projects ($100m plus) undertaken by Sydney based developers have been successfully delivered, helping to lift the profile of the region in the eyes of lenders, developers, and investors.

Industrial assets continue to be popular and have the broadest market appeal with lenders. Office is the only asset class struggling for traction with lenders as the work from home trend continues. However, this is less prevalent in the Newcastle market when compared to the larger capital cities.

Our experienced sales and leasing team are on hand to discuss any questions you have about the commercial and industrial market, and the opportunities available to you. With Stamford Capital’s experienced team partnering with us, we can put you in contact with an experienced brokerage that can assist you further in your research into current opportunities.

Dane Crawford Partner | CEO

For Sale OPPORTUNITIES

Land Opportunities

Newcastle’s hidden cemetery

You may not know that Newcastle’s first formal burial grounds next to Christ Church Cathedral in the heart of Newcastle, has a hidden tie to Blackbutt Reserve in Kotara. Burials ceased in the early 1800’s but there are some indications that “illegal” burials took place after the official closure in 1884.

In the early 1970’s, after seeking the appropriate approvals, Newcastle City Council moved around 170 headstones from the old cemetery as part of a clean up to transform the area into what is now known as Cathedral Park.

Many of the headstones were repurposed and used in the stonework around Blackbutt Reserve.

In 2022 an archaeological dig was commenced to test for the presence of historical archaeological relics or Aboriginal archaeological objects in areas of the park where planned landscaping and heritage interpretation works would likely take place.

These works form part of a number of improvement projects within the masterplan proposal to transform Cathedral Park into a destination location for Newcastle.

Lease Opportunities

Munibung Road Boolaroo

or any other particular needs or requirements of the recipients of this document. All parties must make their own independent assessment and seek professional advice for their specific circumstances.

Neither Commercial Collective, its directors, employees, agents and related entities (Commercial Collective Entities) make any recommendation about the transaction or potential returns or use of the property. The Commercial Collective Entities do not warrant the completeness or accuracy of the information contained in this document or that it is not misleading or not likely to be misleading or deceptive.

None of the Commercial Collective Entities will be liable (whether at law, in equity or otherwise) in any circumstances for any statement made or anything contained in or arising out of the information in this document including any errors, misrepresentation or omissions. Commercial Collective disclaims all responsibility for any loss or damage caused by reliance by any person on this document or any representation, warranty or statement made by or on behalf of any of the Commercial Collective Entities.

This document is confidential and provided for the sole use of persons given it directly by Commercial Collective. It may not be reproduced, disclosed or circulated to any other person without the express written consent of Commercial Collective. All property outlines and locations indicative only.