Lodge Commercial Real Estate Hamilton - Commercial Real estate 1st Quarter Summary

Enquiry took some time to return to the market during the first part of the year. Whether this was due to longer holidays being taken during the ‘Indian summer’, economic nerves, or apathy, we’re not sure. However, March saw a flurry of activity. Investors have always been prevalent; the quality of tenants being the draw-card for most. Unfortunately, the investment market is currently characterised by a lack of quality investment stock (low bank returns are providing investors with the impetus to hang on to good stock, rather than sell). The increased activity among owner-operators is the biggest surprise: interest in some vacant buildings has spiked, and this is especially noticeable in stock that has previously attracted little market attention.

There has also been strong lease interest from a variety of segments. To strike deals with prospective tenants, landlords have had to be pragmatic with the rents they accept, or the terms under which the lease is agreed (most cases). All in all, it is good to see the renewed activity. This often reflects an improving economic outlook, and we’re confident it will be a precursor to improved activity across the entire real estate sector.

Contact us

Download File