Australian CRE Glide Path Report

AUSTRALIAN COMMERCIAL REAL ESTATE MARKETS ARE CLEARED FOR TAKE-OFF

Amid an uncertain outlook for interest rates, there has not been a clear path for Australian Commercial Real Estate (CRE) capital markets. That looks set to change as global central banks have started reducing interest rates, with a cut by the US Federal Reserve seemingly imminent. Sentiment around Australian CRE appears to have turned a corner, and there is plenty of dry capital waiting to be deployed.

Historically, CRE values recover once central banks begin to reduce rates. This report gives an in-depth update on recent pricing trends in the listed market and how this is set to evolve over the next 5-year cycle. 

Some of the key insights that you will find in this report:

• Values in the listed CRE market appear to be stabilising, though office assets may still see some further repricing. 
• CRE volumes look to have bottomed and are in the midst of a recovery, this will aid price discovery. 
• Capitalization rates look set to stabilise through 2025, though market yields on current deals are already at this level.  
• The dip in CRE pricing is near the bottom in office, industrial and retail assets. 
• The adjustment and subsequent recovery in pricing varies substantially across asset classes.

To find out more download the report here.