This month's line up for Burgess Rawson's EOFY Portfolio Auctions.

More than 50 commercial properties will go under the hammer this month at Burgess Rawson’s portfolio auctions in Sydney, Melbourne and Brisbane, offering plenty of financial year end options for investors. 

There is a price range to suit every budget and a variety synonymous with a Burgess Rawson portfolio from an iconic Victorian chateau to a trophy Bondi Beach investment leased to a New York fragrance brand. The line-up includes nearly every asset class; childcare, medical, government, fast food, retail fuel, banks, fitness centres, supermarkets, offices, pubs and more and is therefore expected to reel in a wide audience of investors.

A number of top-tier national brand tenants will feature including United, Shell, Australia Post, IGA, 7-Eleven, ALH, Domino’s and Anytime Fitness. The yield, long-leases and rental growth these essential service assets deliver is attracting high demand amongst investors looking to secure properties before the financial year ends. 

Seven early education properties are also included in the portfolio. 

Burgess Rawson Partner, Queensland Managing Partner and renowned ECEC specialist Adam Thomas, said “childcare is already one of Australia’s most sought-after asset classes and with Labor in power, a planned policy to relieve childcare costs for 90% of the population, this is only going to escalate demand and values of this essential service.” 

The agency forecasts that demand will remain strong for commercial property across all categories because of the long-term nature and security this form of investment offers during times of economic fluctuation.

Burgess Rawson’s Chief Executive Officer, Ingrid Filmer, says “despite the many moving parts of an economy in recovery mode and a new government, demand for commercial real estate will continue to be strong because it offers greater stability and higher yields compared to other forms of investment. 

Ms Filmer said that “even rising inflation and interest rates so far have had little impact on buyer demand and prices, as our May results have demonstrated.” 

Burgess Rawson’s National Head of Research and Data, Jesse Lapham confirmed that recent results had shown no impact on demand, “Our May auction took place shortly after the RBA’s 25 basis point increase in the cash rate, and we sold 35 properties for a combined $130 million reflecting a blended yield of 5.00%. To put this in context, in December 2021, we sold 56 properties on a blended yield of 5.22%, so yields have actually tightened since the interest rate rise.”

Mr Lapham said the reasons the commercial market has not be impacted is because “demand continues to outweigh supply, and interest rates on commercial property loans have already increased by over 100 basis points since August 2021.”

Partner Andrew Havig said another contributing factor in driving demand for commercial property is “we are continuing to see a number of first-time investors at our Portfolio auctions as a result of the current market volatility in the residential property and share markets. Investors are actively seeking a secure long-term investment option even with shifts in the economy.”

Burgess Rawson’s June Portfolio auction will be held in Sydney at the Sydney Opera House on 21 June; Melbourne at Crown Casino on 22 June and Brisbane at the Hilton Brisbane on 23 June with bidding available by phone, online or in person at state offices. Property profiles can be found at burgessrawson.com.au.