Does residential mortgage stress mean more commercial leasing opportunities in 2023?

A November 30 article in the Australian Financial Review by Ayesha de Kretser explains current inflationary pressure, and its impact on mortgages, retail spending and more.

Our main thrust in response is that incoming turbulence in commercial property markets will represent an opportunity for some businesses – to find new sites, renegotiate lease deals on favourable terms for the tenant, and reduce property costs overall.

“Levels of mortgage stress are fast-rising and striking in pockets of the market where banks wouldn’t typically think to look, with younger, fully employed people switching to interest-only repayments to cope with rising rates” she writes.

What’s more, $29.8 billion worth of fixed-rate mortgage will mature before the end of 2022. This means people slipping up from 1.5% to more than 5% on a standard variable rate.

Inflation is expected to climb to its highest level in 32 years.

And in October consumers cut back on retail spending for the first time since COVID-19 hit.

This has already caused movement in the retail, large format, and industrial & logistics property markets.

As a retailer, eCommerce or other business owner with warehouse, industrial & logistics or retail property requirements – this can be an opportunity to take advantage of good lease deals. 

With new sites coming onto market, competitive incentives, renegotiations and other ways to streamline your operations in this new economic climate – get in touch to see how we can help.