NAB Commercial Property Survey - September 2021
JUST RELEASED - NAB Commercial Property Survey 2021
Key highlights are outlined below:
** While lockdowns saw NAB business confidence and conditions fall sharply in Q3, sentiment in commercial property markets also floundered with the NAB Commercial Property Index falling to -12 pts (after rising in the past 4 quarters).
** Overall result however disproportionately impacted by sharp fall in CBD Hotels (-75 pts), with Retail also lower (-34 pts). Office sentiment lifted a little (-17 pts), but still negative and well below average as working from home and social distance requirements continued to impact demand for Office space. Industrial sentiment lifted to new survey high (+64 pts) supported by ongoing strong demand for logistics and warehousing requirements.
** Office vacancy fell to 9.4% nationally (down from a survey high 10.9% in Q2), and lower in all states (but still above survey average levels). Retail vacancy rose to 8.3%, and also historically elevated - particularly in SA/NT and WA . Industrial vacancy fell (4.8%) with market tightness most evident in NSW (3.5%). Industrial vacancy to remain low in next 1-2 years, with below survey average vacancy enduring in all states except VIC.