Wagga Wagga Blog

Reflecting residential property activity, commercial property markets in NSW’s largest inland city, Wagga Wagga, have rebounded solidly since the middle of 2020 and the end of COVID-19 restrictions.

The local commercial market was impacted by pandemic lockdowns but has bounced back due to zero Covid numbers, low interest rates, a record year for the rural sector and a massive investment in the region’s transport infrastructure. 

 “In the first half of 2019, sales transactions eased significantly. We only had a handful of retail sales transaction generated by owner-occupiers using the downturn to get into a suitable commercial property,” said Craig Tait, Director of Raine & Horne Commercial Wagga Wagga. 

“Leasing was also flat, and we kept the wheels turning with a few small retail transactions with cafes prominent. 

“While pubs and clubs were forced to close, some cafes & fast-food operators in Wagga Wagga pivoted into takeaway only service and deliveries, which kept cash flowing throughout COVID. We also leased a few small warehouses.”

Booming second half of 2020

However, after a challenging first six months of 2020, by comparison, Raine & Horne Commercial Wagga Wagga reported sales and leasing transactions increased fivefold during the six months after 30 June.  

“The market went gangbusters in the second half of 2020 due to the relaxing of restrictions as the Wagga Wagga economy reopened for business. We didn’t have any COVID infections, but many firms had held off from buying or leasing until there was more certainty,” Craig said. “Government support such as JobKeeper also played a significant role in kickstarting local business activity and in turn the commercial property markets in Wagga.”

The robust demand levels have continued in 2021 with activity spread evenly across industrial, retail and office properties. “Due to the increase in demand, yields for retail and industrial properties tightened by 0.5% between June and December 2020, Craig noted. “Also, because of the strong demand since winter 2020, listings are now drying up, which makes it a great time to sell a Wagga Wagga commercial property. “We only have a couple of multi-tenanted retail investments available for sale, including a commercial shop top building at 9-11 Gurwood Street, Wagga Wagga.

“Any commercial property that offers good value and has a secure tenant on a long-term lease is selling fast.”

Apart from local businesses, Craig said that demand for Wagga Wagga commercial real estate is emanating from local investors and buyers from Sydney, Melbourne, and regional NSW. 

On the office front, several National Disability Insurance Scheme (NDIS) providers have led the charge for leased space, according to Craig. “There has been more demand for ground floor office space. “Business owners and investors are buying and leasing in Wagga because they recognise the strength of our multi-pronged economy.”

“The local agricultural industry enjoyed a record season, which has translated to spending in town, which has boosted the economy. 

There is also plenty of infrastructure investment underway in Wagga Wagga, including the $43.7 million stage of the Riverina Intermodal Freight and Logistics (RIFL), at the Bomen Industrial Precinct just north of the city. This truck and train hub will facilitate exports across Australia and the globe.

“Plenty is happening in Wagga Wagga – buyers are very active, we just need a few more listings to take advantage of the opportunities.”

If you are considering selling a commercial property in Wagga Wagga contact Raine & Horne Commercial Wagga Wagga on (02) 6921 2242.