Welcome to the latest edition of the Commercial Collection, showcasing the region’s best commercial property opportunities. We have seen an overall improvement in market sentiment in the first half of the year, which is resulting in a large amount of new enquiry and activity in market.
This can be seen in the recent results from the 2024 Lender Sentiment Survey conducted by our finance partner Stamford Capital. 42% of lender respondents stated that they are expecting an increase in investment lending from major banks and 64% are expecting an increase from non-bank lenders. There is also a strong sentiment from lenders that the Commercial office sector is continuing to move towards recovery across the capital cities, further underpinning positive sentiment.
The Property Council of Australia recently shared statistics on a rise in the office market vacancy rate in non-CBD areas nationally from 17.3% to 17.9% and CBD vacancy from 8.2-8.3% although this is largely due to an increase in supply rather than a decrease in demand. As with the Newcastle office market, there is a national trend in the office market of tenants migrating towards high grade offices, leading to a need for greater incentives to be offered to secure quality tenants. Secondary grade building owners require capital expenditure for both tenant retention and amenity improvement.
The retail and hospitality sectors are also seeing positive impacts from the uplift in market sentiment with leasing activity on the rise. This is in line with the trend for more consumers to favour a mixed online and in person approach to their shopping behaviours post pandemic.
The Newcastle industrial market remains resilient, particularly for workshop and warehouse spaces between 1000 sqm to 5000 sqm. Most transactions are driven by expansion requirements, interstate relocations, and a flight to quality. Active industries fuelling this demand include mining services, transport, construction, and various trade sectors. This trend underscores Newcastle’s position as a key commercial hub, with businesses seeking larger, modern spaces to support their growing operations and improve efficiency.
This market dynamic continues to exert upward pressure on rents, benefiting landlords and developers. Investment yields remain low based on projected rental growth, reflecting the high level of competition for quality assets.
The availability of industrial land for sale remains limited, with supply primarily coming from resales within established industrial estates and recently developed subdivisions. Most land released to the market is offered as leasing opportunities, allowing businesses to occupy new or customised facilities.
Speak with our sales and leasing team today to learn more about the opportunities in this quarter’s Commercial Collection.
Dane Crawford Partner | CEO
For Sale OPPORTUNITIES
Land Opportunities
Shepherd’s Hill Cottage ready for a new lease on life.
One of Newcastle’s most iconic structures, Shepherd’s Hill Cottage, has sat atop King Edward Park since the 1890s, watching the city evolve for over a century. The site, with a deep-rooted militaristic history, is now in the process of being restored and reopened for public use for the first time in several decades. At over 130 years old, it is no surprise that the heritage-listed cottage has an extensive history of function.
Construction began in 1890 and the cottage was originally used as a mess hall for colonial military officers in the Navy. During World War II, the military site served as a vital command position for the Navy and Airforce, becoming one of the only defence sites on the coast of Australia that was manned by both the Royal Australian Navy and the Royal Australian Air Force simultaneously. With its priceless views stretching from the Stockton Sand Dunes down to Dudley Beach, plus a wide panorama of the Pacific Ocean, Shepherd’s Hill Cottage made for the perfect post for military officials in 19th Century wartime.
When the early 2000s rolled around, the cottage was leased to Marine Rescue NSW as one of the organisation’s headquarters. The site housed Marine Rescue personnel until April 2015 when a superstorm devastated the Hunter Region, severely damaging the group’s base at the cottage.
In 2021, City Newcastle invested over a million dollars into extensive restoration and revitalisation of the cottage, overseen by a renowned heritage architect. Both the interior and exterior of the cottage has undergone a major revamp - administered by Heritage NSW and funded by Newcastle City Council.
Shepherd’s Hill Cottage is part of the City of Newcastle’s revitalisation projects and will see it reopen its doors to the public in late 2024. With community use and a café part of its future use plans, this cottage is sure to continue to be apart of the history of Newcastle for many years to come.
Lease Opportunities
Our local team of industry experts have a wealth of knowledge, experience and an extensive track record in managing a diverse range of properties. We are not just rent collectors, we build relationships, provide solutions and
FOR LEASE
NEWCASTLE
10 Newcomen Street, Newcastle NSW 2300
EAST MAITLAND
Suite 2, 13 Mitchell Drive, East Maitland NSW 2323
02 4077 5858 office@commercialcollective.com.au
DISCLAIMER
This document has been prepared by Commercial Collective using information provided to it for the transaction contemplated. Any statement or opinion made by Commercial Collective in this document is not based on any actual or implied knowledge or consideration of the investment objectives, financial situation, legal or taxation position 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.
ACKNOWLEDGEMENT OF COUNTRY
Commercial Collective pay our respects to the traditional owners, their elders past and present and value their care and custodianships of these lands. Commercial Collective is a proud Newcastle company built on the lands of the Awabakal & Worimi people.
