Softer interest rates will mean 'moderate decline' in commercial property yields – CBRE

Commercial property yields will remain close to current levels until later this year, followed by a “moderate decline” next year, CBRE believes. (Image: Getty)

Brent Melville

Thu, 21 Mar 2024

Prime commercial property prices have bottomed out, and the secondary market is close to that point as investors start to price in a likely dip in interest rates later this year.That's according to CBRE head of capital markets Brent McGregor, who claims that good-quality real estate “isn’t going to be worth less next year than it is now”.His prognosis comes amid wide expectations that interest rates will start tracking down in the coming months.That follows a hiatus after the Reserve Bank of New Zealand (RBNZ) pushed the o...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Books

The currents of US currency

Could the US dollar's reign be coming to an end?

The Wall Street Journal 5:00am

Technology Opinion

Meta and Apple just got slapped by Europe’s new rulebook

The era of the speeding ticket may well be over.

Bloomberg 5:00am

Meta and Apple just got slapped by Europe’s new rulebook

Markets Market Close

NZ sharemarket up 0.5% ahead of long weekend

Pacific Edge's share price fell 7.32%.

Tom Raynel 24 Apr 2025

NZ sharemarket up 0.5% ahead of long weekend

Sponsored

“Not an invisible footprint”: Why technology supply chains need optimising

Outdated hardware is a supply chain and cost risk.

Datacom

Sponsored

Bayleys Total Property Issue 3 out now

Backed by Bayleys’ national strength and global reach

Bayleys

More Property

Property

RoofBuddy founder's previous venture was liquidated

RoofBuddy sponsors the New Zealand Warriors NRLW franchise.

Gregor Thompson 24 Apr 2025

Property

JLL to close debt advisory unit

Global commercial real estate firm Jones Lang LaSalle (JLL) is offshoring its debt advisory division, a month after it announced it would downsize its New Zealand footprint. The Australian Financial Review (AFR) reported on Tuesday evening that JLL is closing its Australian and...

Gregor Thompson 23 Apr 2025