The commercial property sector is showing signs of a post-Covid recovery, with upbeat prospects for industrial and commercial properties.
“The industrial market is the strongest sector at the moment, while vacant shops on main shopping streets are feeling the brunt,” he said.
“There seems to be a lot more heat coming into the commercial market post-Covid with the cost of money so cheap thanks to low interest rates.”
Mr Klein predicts the market will continue to be strong for the remainder of the year.
“Shops with attractive leases in place and the industrial sectors will continue to thrive while the competition is hot out there,” he said.
A Pizza Hut shop at 27 Victoria Parade, Collingwood, sold for $1.51 million with five bidders vying for the keys.
“Pre-Covid we didn’t have these kinds of numbers competing, it pushed the end price $300,000 above the expected price,” Mr Klein said.
Another great sale at 531 Malvern Road, Toorak, listed with a $2.7 million price tag, attracted four bidders and secured $3.19 million from a local investor with plans to refurbish and lease out.
“It’s always hard to pick the highest point in the market, but we feel the peak is here and now, and though it may stick around for a little while, it won’t be here forever,” Mr Klein said.
“Now is a better time than ever to sell, but for buyers it might not be the time to spend money, although there are great opportunities in vacant shops which are priced quite competitively, it may just be worth the risk.”
The commercial division of Barry Plant has been operating since February 2020, just prior to the pandemic. The team of three has worked closely with the Barry Plant residential agencies to support their clients and build on partnering deals.
“When we first opened, given the circumstances, it was a slow start, but since January this year, our business has thrived off the back of a very strong market.”