IN THE KNOW - Sunshine Coast RETAIL Q1 2019 | Ray White Commercial | Northern Corridor Group

Page 1

S U N S H I N E C OA S T R E TA I L

MICHAEL SHADFORTH COMMERCIAL SPECIALIST 0488 981 076

EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446

JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331

JULIE RYAN MAJOR ASSET SALES 0447 445 453

SUNSHINE COAST

PINE RIVERS

MORETON BAY

1/172 Brisbane Road Mooloolaba QLD 4557

Level 1, 104 Gympie Road Strathpine, QLD 4500

3/125 Morayfield Road Morayfield QLD 4506

T 1300 255 075 F 1300 778 887

T 1300 255 075 F 1300 778 887

T 1300 255 075 F 1300 778 887

ONE TEAM - THREE LOCATIONS


DIRECTOR’S U P D AT E S

NORTHERN CORRIDOR GROUP

MICHAEL SHADFORTH

CHRIS MASSIE

As a child of the Sunshine Coast and now a father myself, it is the diverse education and employment opportunities available to the younger generation that I believe will have the greatest long-term impact.

The launch of new estates like Aura in Caloundra and Corporate Park East, as well as the continued expansion of Brendale, will provide some relief but we expect demand to continue outstripping supply through 2019.

DIRECTOR UPDATE

Director Sunshine Coast

Director Moreton Bay

ONE TEAM - THREE LOCATIONS

The first quarter of 2019 for the Northern Corridor is set to continue the generally positive trajectory we witnessed across 2018. While housing prices in the southern capitals have taken a hit, many are still capitalising on the price disparity to sell up and move north. This is reflected in our domestic migration numbers that have parts of the Northern Corridor among the fastest growing precincts in the country. The result is a solid baseline increase across almost all measurable sectors of our market, but it is the intangible benefits that excite me just as much. As a child of the Sunshine Coast and now a father myself, it is the diverse education and employment opportunities available to the younger generation that I believe will have the greatest long-term impact. Recent infrastructure programs like the Undersea Cable, University Hospital, Sun Central, the international airport and Aura has seen the Sunshine Coast quickly become a serious contender on the global economic stage, and I for one am excited to see where we are headed.

Our expansion into the Brendale and North Brisbane markets through our Pine Rivers office has provided some interesting insights, with the strength of industry across the North Brisbane and Moreton Bay regions being the defining take-away of 2018 for me. On review of our transactions across the region, the lease and sale of industrial buildings accounted for close to 60% of all deals, outperforming office, retail, showrooms and hospitality combined. The implications for this trend becomes concerning when combined with the analysis of properties actually available across the region. The launch of new estates like Aura in Caloundra and Corporate Park East, as well as the continued expansion of Brendale, will provide some relief but we expect demand to continue outstripping supply through 2019. Opportunities exist across all sectors this year and we will be closely tracking the trends. At the start of 2018 our team has set ourselves the goal of being the commercial property experts for the Northern Corridor, so much so that we changed our name to reflect this. We are proud of the work done to date and promise to continue providing you with the knowledge, resources and support to ensure your next property decision is made from an informed position of strength.

RAY WHITE COMMERCIAL NORTHERN CORRIDOR GROUP ANNUAL SALES & LEASING . Annual Sales $70,363,885 47 Industrial 19 Retail 10 Office 19 Land 5 Other

Annual Leases $6,298,459

96 TOTAL SALES

67 Industrial 47 Retail 36 Office 3 Land

157 TOTAL LEASED


SPOTLIGHT ON CENTRAL S U N S H I N E C O A S T R E TA I L NORTHERN CORRIDOR GROUP

RETAIL INVESTMENTS WHAT DOES 2019 HAVE IN STORE?

THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT JULIE RYAN OF RAY WHITE COMMERCIAL NORTHERN CORRIDOR GROUP

We believe 2019 will be a strong year for Retail Investments. While there are recognised negative forces at play, it is local factors which will accelerate the greatest improvements in this sector. To get the negatives out of the way first, let’s recognise that online shopping and other disrupters to traditional retailing have put pressure on most retailers. This pressure is likely to accelerate with the rise of artificial intelligence, autonomous vehicle delivery and the like. Additionally, the negative sentiment in property circles nationally may have some dampening effect on business and consumer confidence. So why are we so positive in our outlook? There are numerous reasons to believe the growth corridor from Brisbane’s north through to the Sunshine Coast will experience strong steady growth year on year. Specifically, we see:

1. Strong employment growth (up 9,000 to 160,000 in 2018 Sunshine Coast)

2. Net migration remains strong with 30-50 being the largest group to move to SEQ. These are likely to be productive people in the local economy. Additionally, there are significant numbers of under 14yo’s moving which will mean continued growth as they become of employable age.

3. Strong entrepreneurial growth. Since 2015 (to 2017), new business start-ups have represented 2,185, or up 7.72%(ABS). We eagerly await 2018 figures, we expect they will show further strong growth in this important indication of entrepreneurial confidence. 4. Sunshine Coast has been rated in the Top 7 “Intelligent Communities” in the world meaning that the area is highly likely to grow jobs of high value very quickly.

5. The submarine cable arriving soon is a major attraction to “smart businesses”and is set to attract exceptionally strong growth in IT focused businesses. This means new highly-paid jobs are likely to grow in the very near future.

6. The growth of the industrial sector has led to a strong increase in the availability of “just in time deliveries” to retailers; this improves their profitability and underlying strength.

7. SEQ city plan ensures strong investment at Federal, State and Local levels for years into the future.

2019 Tenant Mix? What retail investors need to focus on now, is who are going to be the vibrant and successful tenants of the future? Julie Ryan, our resident Retail Investment Specialist would be delighted to share her insights into how to target the right tenants moving forward.

FOR LEASE - NEW RETAIL PROPERTIES LAST QUARTER Size

Quantity

THIS QUARTER Annual Rent/m

2

Size

Quantity

Annual Rent/m2

<200

65

$414

<200

57

$393

200-500

10

$162

200-500

5

$190

>500

1

$220

>500

0

N/A

FOR SALE - NEW RETAIL PROPERTIES LAST QUARTER Size

Quantity

THIS QUARTER Annual Rent/m2

Size

Quantity

Annual Rent/m2

<200

15

$4,652

<200

13

$6,818

200-500

9

$2,710

200-500

6

$4,345

>500

2

$6,841

>500

1

EOI


SUNSHINE COAST RETAIL ACTIVITY NORTHERN CORRIDOR GROUP

LISTED FOR LEASE / SALE

Ray White Commercial - Northern Corridor Group RESEARCH TEAM The following is a summary of the key Listed, Leased and Sold properties ADDRESS

SUBURB

NLA M2

PRICE

$/SQM

Lease

5-6/106 Currie Street

Nambour

31m2

$6,500

$210

Lease

5/40 Glen Kyle Drive

Buderim

40m2

$14,000

$350

Lease

6/128 Golf Links Road

Buderim

62m2

$20,280

$327

Lease

9/278 Nicklin Way

Warana

112m2

$22,400

$200

Lease

15-16/278 Nicklin Way

Warana

176m2

$33,440

$190

Sale

16-17/9 Ocean Street

Maroochydore

64m2

$335,000

$5,234

Sale

2-3/8 King Street

Buderim

149m2

EOI

EOI

Sale

3/1740-1744 David Low Way

Coolum Beach

267m2

$1,160,000

$4,345

Sale

18/21 Nicklin Way

Minyama

87m2

$399,000

$4,586

Sale

17/123 Sippy Downs Drive

Sippy Downs

108m2

$460,000

$4,259

Sale

30/82 Sugar Road

Maroochydore

113m2

$295,000

$2,611

Sale

4/86 Link Crescent

Coolum Beach

266m2

$380,000

$1,429

LEASED OR SOLD STATUS

ADDRESS

SUBURB

NLA M2

PRICE

$/SQM

Leased

172 Brisbane Road

Mooloolaba

50m2

$33,370

$667

Leased

5/130-164 Brisbane Road

Mooloolaba

55m2

$18,000

$327

Leased

3/40 Glen Kyle Drive

Buderim

60m2

$20,540

$342

Leased

5/24 Bowman Road

Caloundra

77m2

$60,000

$779

Leased

2/115-121 Brisbane Road

Mooloolaba

122m2

$30,000

$246

Buderim

149m2

$1,280,000

$8,591

Caloundra

231m2

$1,150,000

$4,978

Beerwah

340m2

$730,000

$2,147

Sold

2-3/8 King Street

Sold

8/38 Bulcock Beach Esplanade

Sold

4 Turner Street


CASE STUDY

NORTHERN CORRIDOR GROUP

LOTS 2 & 3, 8 KING STREET BUDERIM Enquiry records were broken over the festive season when this premium tenanted property hit the market just before Christmas 2018. The new long-term lease, depreciation benefits and future potential for this ground floor office suite, currently tenanted by McGrath Real Estate Buderim resulted in over 40 enquiries which is a record for the holiday season when usually the market is quiet. This property may be the best example of the importance of proper lease negotiation, property presentation and competition creation through the sales process. Emily Pendleton from Ray White Commercial Northern Corridor Group prepared the property for sale by assisting the sellers in preparing a new lease for McGrath Buderim which meant we were able to achieve a 6.6% return with the new lease in place getting the vendors $100,000 more than there asking price.

TYPE Retail Tenanted Investment

LISTED 20 Dec 08

SOLD 16 Jan 09

ENQUIRIES 42

OFFERS 3

Contact Emily Pendlton for more information or to discuss your own property needs

SALE PRICE $1,280,000

[PREMIER AGENT]

MARKETING $1,712

0402 435 446


AGENT PROFILE

NORTHERN CORRIDOR GROUP

From the moment you meet Julie, it is clear you are in the hands of highly skilled and focused professional. Her experience is global, having worked for outstanding organisations and individuals around the world for more than 25 years. She is the agent other agents turn to for advice regarding strategy, marketing and best practice. As a mark of the regard she is held in by the industry, Julie has had a number of years being the official mentor to the very highest performing salespeople and offices within the Ray White Group around the world.

“Our future as market leaders is in the hands of the people we serve. It is our intention, indeed our mission to be the best at what we do. We want our clients to feel confident that we will help them realise their property goals using skill, marketing and technology. Every element of our operation comes back to our clients – what`s best for them, how we can achieve the best results available in today’s market.”

Emily commenced her sales career with Financial Advisors, a role she enjoyed for three years, before transitioning into commercial real estate. Starting as a sales cadet in 2013, she quickly established herself as a retail specialist for Mooloolaba and Maroochydore before joining the Ray White Commercial Northern Corridor Group in 2014 as sales and leasing agent.

and leasing. Emily has a Certificate IV in Mortgage Broking and Insurance, a Diploma in Financial and Mortgage Broking and traineeship in Insurance Broking Management.

The Big Top, River Markets and Moko are just a few of the developments she has been involved in successfully marketing

JULIE RYAN RETAIL INVESTMENT SALES 0447 445 453 julie.ryan@raywhite.com

Emily is currently studying for a BA degree in Property Economics and Development at the University of the Sunshine Coast.

EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446 emily.pendleton@raywhite.com

RECENT NOTEWORTHY TRANSACTIONS

E

R MO

SOPERT

D

ED D! S NEED E S IE

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! EE LD IES N

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A LE OPERT

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PR

ED D! S NEED E S IE

A LE OPERT R

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Lots 2&3, 8 King Street, BUDERIM

Shop 5/24 Bowman Road, CALOUNDRA

2/115-121 Brisbane Road, MOOLOOLABA

• Tenant: McGrath Real Estate Buderim • Operational: 5 years in this location • Lease Commencement: 8/7/2018 • Lease Expiry: 7/7/2023 • Option: 1 x 5 years • Increases: Fixed 2% increases each year

• 76.9m2 • Located next to Woolworths • Ample onsite door to door car parking • Loads of pedestrian traffic • Ideal for speciality retail, personal or professional services

• 122m2 • High exposure on signage • Glass shop front offering good natural light • Ample customer car parking at rear and door to door street parking • Excellent value for money

Sold $1,280,000

Leased $60,000 P/A GROSS

Leased $30,000 P/A GROSS


PROPERTIES FOR SALE OR LEASE NORTHERN CORRIDOR GROUP

! D SE NEEDE A E ES

! ED LE NEED A S IES

R L RTI FO PROPE

R T FO ROPER RE

MO

P

RE

MO

2/30 Minchinton Street, CALOUNDRA

19/13 Mooloolaba Esplanade, MOOLOOLABA

• Tenant: Crumbz Cafe • Operational: 4 years in this location • Lease Commencement: 1/12/2016 • Lease Expiry: 30/11/2021 • Option: 1 x 5 years • Increases: Fixed 4% increases each year • Current Gross Rent: $33,745.92 • Outgoings: Paid by Lessor ($9,080.35) • Current Net Rent (after outgoings): $24,665.57

• High foot traffic location on Mooloolaba Esplanade • Great exposure and visibility at this busy waterfront location • 44m2 retail space with change rooms to the rear Mooloolaba Esplanade is a popular destination with a wide variety of retail shops, cafes and restaurants. This property has great visibility with green space to the front, and ample street parking.

For Sale - $370,000 Emily Pendleton

SE D EA NEEDE L R S

IE E OOPERT L A R

S

EP

For Lease - $61,600 P/A NET Emily Pendleton & Jason Wright

! ED LE NEED A S IES

R T FO ROPER EP

R MO

R MO

67-75 Regatta Boulevard, ‘Moko’ BIRTINYA

16 & 17/9 Ocean Street, MAROOCHYDORE

• Mixed Use Development with 55 apartments and over 1,300sqm of retail & restaurant space and 400sqm of office or medical space • Now completed and ready for occupation • Close proximity to Hospital precinct and in the heart of Birtinya Island - major growth area on the Sunshine Coast • High density of completed new dwellings in the immediate walking catchment

• Two Lots in one line or separately • 64m2 in total, 32m2 each shop • Located on the top floor of the Centrepoint Arcade • Lot 17 offering the best signage exposure to Ocean Street for the complex • There is no GST payable as a lease is still in place but property will be available immediately after settlement • Ample car parks at the rear

For Sale or Lease - Price on application Emily Pendleton

For Sale - $335,000 Emily Pendleton

For a full list of current opportunities for sale or lease visit raywhitecommercialnortherncorridorgroup.com.au


OUR TEAM

NORTHERN CORRIDOR GROUP

SUNSHINE COAST

MORETON BAY

MICHAEL SHADFORTH COMMERCIAL PRINCIPAL 0488 981 076 michael.shadforth@raywhite.com

CHRIS MASSIE DIRECTOR 0412 490 840 chris.massie@raywhite.com

JULIE RYAN MAJOR ASSET SALES 0447 445 453 julie.ryan@raywhite.com

ASHLEY REES SENIOR PROPERTY ANALYST 0411 707 410 ashley.rees@raywhite.com

EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446 emily.pendleton@raywhite.com

WARWICK PETERS SENIOR BUSINESS BROKER 0412 234 231 warwick.peters@raywhite.com

JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331 jordan.hayes@raywhite.com

AARON CANAVAN SALES & LEASING EXECUTIVE 0447 744 948 aaron.canavan@raywhite.com

JASON WRIGHT ASSET MANAGEMENT SPECIALIST 0451 497 368 jason.wright@raywhite.com

BLAKE PRIMROSE SALES & LEASING EXECUTIVE 0423 555 043 blake.primrose@raywhite.com

PINE RIVERS PETER LAURENT SALES & LEASING EXECUTIVE 0429391675 peter.laurent@raywhite.com

TREVOR NELSON-JONES SALES & LEASING EXECUTIVE 0407 736 521 trevor.nelson-jones@raywhite.com

JUMA MARSTELLA SALES & LEASING EXECUTIVE 0450 360 321 juma.marstella@raywhite.com

BROCKE HAMBRECHT SALES & LEASING EXECUTIVE 0466 599 724 brocke.hambrecht@raywhite.com

raywhitecommercialnortherncorridorgroup.com.au

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