A top commercial broker has claimed major banks have a strong appetite for commercial deals as high rents prompt retailers to look at buying.
Wealth management group Perpetual is eyeing the commercial lending space, News Ltd has reported, and Perpetual head of institutional business Warwick Boys has claimed there is a funding shortfall in commercial property created by the withdrawal of the majors.
But MPA Top 10 Commercial Broker Daniel Zadnik of Hawthorn Finance in Victoria has claimed banks are willing as ever to fund commercial deals.
"I think the banks are all keen to fund good quality commercial projects. I think they have a good appetite at the moment," he said.
"Having said that, they have a good appetite for good quality deals. If someone wants to do a commercial deal and it's a little skinny, they'll let that pass," Zadnik added.
High retail rents could be driving demand in the commercial property market, Zadnik said. As leasing becomes more expensive, many business owners are looking to buy.
"There are a few businesses that perhaps are renting commercial space, and with this market they're taking the opportunity in a lower interest rate environment if they can get into a property for the equivalent of what they're paying in rent," he said.
However, both bank and borrower appetite remains contingent on shaky business confidence, Zadnik said.
"I don't see the market running away from us, so I think it's delicately poised at the moment. If rates come down and confidence returns it could move forward, but businesses always have an eye on Europe and if things remain volatile that will have a flow-on effect in terms of confidence," he said.