Demand and expectation.
Demand can be categorised two ways:
1. Long term passive WALE to a quality tenant (either Commercial or Industrial) and an example of this is the Coca Cola 20 year lease back in Qld which is rumoured to be attracting offers in the low 5% yield range.
2. Chasing value add, i.e. not fully leased, in need of capex or repositioning. These buyers will compromise on location, product line and size range to acquire an asset where they believe they can add value. As a result of this, the broader geographical market is offering up all styles of opportunities that may have lain dormant for years. Overall demand is stronger than ever in what is a very tightly held real estate market.