Author: Barry Cawthorn – Bawdens Managing Director
In the last issue of Industrial Property News, we identified that as interest rates continued to fall after the pandemic in 2021, the number of sales completed as a percentage of all transactions rose.
In 2022 and 2023, we observe a reversing of this, with sales for the year to date in 2023 representing only 8% of all transactions (see Table A below).
Typically, market commentators might conclude that falling sales means business conditions are deteriorating.
A measure that can provide guidance as to how businesses feel about trading conditions is to determine if the total number of sales and leasing transactions occurring in the market is declining or increasing significantly.
For Industrial Property News, Bawdens examined the total number of transactions completed for the study period 2019-2023 year to date, and identified the percentage change in total transactions from the previous calendar year.
The transactions activity reveals that, during the study period, there was very little change in the number of deals being completed, with no significant decline or gain.
More businesses are simply seeking to lease space for growth in 2023, rather than purchasing. Despite rising interest rates, the number of transactions being completed in 2023 is greater than the same period in 2022, increasing by 17%.
For more information, our latest edition of Industrial Property News can be found here: https://bawdens.com.au/bawdens-industrial-property-news-issue-160/
Category: Research, Trends & Insights
Topics: Industrial Property Rentals, Inflation Adjusted Rentals, Data & Analytics
Solutions: Industrial Research, Performance Overview