How Coffs Harbour’s commercial market has fared during the coronavirus pandemic: HTW
About 30 percent of industrial property managers in Coffs Harbour have registered for some level of rental assistance, according to the latest report from valuation firm Herron Todd White.
“There has been a minimal number of tenants requesting a rental waiver pursuant to the government-introduced code of conduct,” the firm said in their April Month-in-Review report.
“Most are requesting deferment of rent on a month to month basis.”
They added that the situation and reaction of landlords varies depending on the level of financial debt over the investment property.
Furthermore, the report found that the issue of compounding debt is creating concern among highly geared property owners.
“There have been few Coronavirus-related notifications from tenants vacating an industrial property, however we note that rental increases pursuant to leases are not being enforced.” “Some agents report continued investment enquiry, including potential purchasers from the Sydney market seeking leased investments in the $750,000 to $1.5 million price range willing to accept yields at 6.0%to 6.5%.”
A sector of the investment market also appears to be seeking to capitalise on property investment opportunities arising out of detrimental economic issues directly associated with the Coronavirus, according to the firm.
The commercial retail market sector is currently seeing broad-scale rent reduction agreements in place for between 25% and 50% of monthly rent.
This is initially set for a two- or three-month period, with a review scheduled for June.
