Corporate Park East December Owner’s Report
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Corporate Park East Summary Market Sentiment: Following this month’s interest rate rise, there has been a slight dip in property inquiries and some reluctance from tenants in particular to make offers. This is the same pattern we saw in June after the last rise, so we are not overly concerned. It is likely that business owners might defer decisions until 2024, but we are working to create urgency and highlight the benefit of moving over the Christmas break. Sentiment towards the Northern Corridor and industrial assets in particular continues to improve, driven by population growth projections from now to the Olympics. Some major future development projects may offer future solutions to our industrial land supply shortage, but nothing is expected to deliver complete lots within five years. We expect prices to continue pushing up for the foreseeable future. Final Stage Construction: Construction of the final stage of Corporate Park East is now well under way, with completion expected in the third quarter of 2024. It is expected we will see the first buildings completed on this new stage in early 2025. The rapid rate of sale for this final stage, as well as the strong uplift in average sale rate, has led to immediate equity uplift for existing owners in the first three stages of Corporate Park East.
Demand Summary Owner Occupiers: Despite the interest rates, the owner-occupier market remains robust. Finance is proving harder to secure but there is still appetite among lenders. Valuers are more cautious, so we are working harder to convert under contract deals than a year ago Investors: The investor sector continues to soften, primarily driven by heightened expectations regarding yields and tenant security. There is still good demand once a new lease has been negotiated. We are working to offset the increase in yield expectation by highlighting the increasing capital values due to construction costs and land scarcity. Tenants: A significant shift has been observed in tenant incentive expectations. Unlike the minimal expectations of last year, tenants are now factoring in incentives such as rent-free periods, staged rent, or contributions to fit-outs. Encouragingly, tenants are displaying little pushback to the face rents, so long as they are receiving some “love” in terms of incentive. This is helping to protect the capital values across all building sizes. The demand pulse in the market is being led by trade services, particularly electricians and builders. This aligns with the ongoing residential growth across the region.
“Industrial capital growth across Australia has outperformed all other sectors in the last twelve months. This, combined with growth of 13.6% in the first three quarters of 2023 is keeping industrial property at the top of investors’ wish-list” - Ashley Rees, RWC NCG Senior Analyst
Recent Transactions Key takeaways We have seen the bulk of transactions occur either on completion of buildings or once walls have been erected. Finance approvals only remain valid for 90 days, so most buyers relying on finance have been unable to commit unconditionally until completion dates are certain.
Status
Date
Leased
01/05/2023
Leased
Address
Size/m
Price/m
4/64 Evans Drive
118
$153
14/08/2023
6/60 Evans Drive
136
$201*
Leased
01/08/2023
3/60 Evans Drive
171
$158
Leased
16/06/2023
1/53 Evans Drive
200
$165
Leased
09/10/2023
2/53 Evans Drive
200
$165
Leased
15/01/2023
1/64 Evans Drive
287
$161
Leased
11/07/2023
2/24 Evans Drive
300
$140
Leased
01/03/2023
3/2 & 12 Alta Road
942
$140
Leased
01/04/2023
44 Evans Drive
1200
$140
Address
Size/m
Price/m
2
2
*Gross
Status
Date
Sold
20/03/2023
6/60 Evans Drive
136
$2,794
Sold
17/11/2023
3/23 Evans Drive
158
$3,354
Sold
08/11/2023
2/23 Evans Drive
160
$3,375
Sold
01/11/2022
7/60 Evans Drive
161
$2,919
Sold
23/02/2023
1/23 Evans Drive
168
$3,720
Sold
17/05/2023
4/23 Evans Drive
170
$3,500
Sold
10/01/2023
5/60 Evans Drive
171
$2,917
Sold
23/01/2023
2/60 Evans Drive
171
$2,917
Sold
09/02/2023
4/60 Evans Drive
171
$2,917
Sold
08/02/2023
1/60 Evans Drive
279
$3,154
Sold
07/03/2023
2-12 Alta Road
2698
$2,039
2
2
Current Stock on Market Stock Summary We see a clear gap in available stock in the 300 - 1,000m2 range in both lease and sales at the moment. These are traditionally a tricky size to design on sub-3,000m2 blocks. While there have been quite a few complexes complete or approach completion at the same time, the rate of absorption to date and lack of stock across the region means we do not expect to see any softening of rates.
Under Construction
Complete
0-150m2
0
0
150-300m2
4
300-600m2
Under Construction
Complete
0-150m2
4
3
10
150-300m2
9
5
1
3
300-600m2
1
0
600-1,000m2
0
1
600-1,000m2
0
0
1,000m2+
2
2
1,000m2+
3
2
Total
7
16
Total
17
10
Lease
Sale
Current Properties Under Contract/Offer
Property
Size
$m2
$
Leased/Sold
3/20 Alta Road CABOOLTURE
206
$2,767
$570,000
Under Contract
Unit 6/ 27-31 Alta Road CABOOLTURE
348
$2,443
$850,000
Under Contract
4/ 20 Alta Road CABOOLTURE
325
$2,815
$915,000
Under Contract
5/20 Alta Road CABOOLTURE
341
$2,859
$975,000
Under Contract
1/36-40 Alta Road, CABOOLTURE
543.2
$2,475
$1,344,500
Under Contract
1&2/20 Alta Road CABOOLTURE
685
$2,774
$1,900,000
Under Offer
35 Alta Road CABOOLTURE
1300
$160
$208,000
Under Offer
9/ 16 Alta Road CABOOLTURE
376
$160
$60,160
Under Offer
Current Sale Stock on Market Property
Size
Sale $m2
Sale $
Status
5/23 Evans Drive CABOOLTURE
136
$3,308
$449,900
Complete
6/ 23 Evans Drive CABOOLTURE
140
$3,571
$500,000
Complete
7/ 23 Evans Drive, CABOOLTURE
144
$3,472
$500,000
Complete
4/36-40 Alta Road, CABOOLTURE
147.4
$3,050
$449,500
Under Construction
14 /36-40 Alta Road, CABOOLTURE
147.4
$3,050
$449,500
Under Construction
15 /36-40 Alta Road, Drive, CABOOLTURE
147.4
$3,050
$449,500
Under Construction
5/36-40 Alta Road, CABOOLTURE
149.1
$3,015
$449,500
Under Construction
5/ 31 Alta Road CABOOLTURE
179
$3,017
$540,000
Complete
6 / 11 Alta Road CABOOLTURE
184
$3,000
$552,000
Under Construction
2 / 31 Alta Road CABOOLTURE
198
$2,942
$582,600
Complete
3 / 31 Alta Road CABOOLTURE
198
$2,942
$582,600
Complete
4 / 31 Alta Road CABOOLTURE
198
$2,942
$582,600
Complete
2 / 11 Alta Road CABOOLTURE
212
$3,000
$636,000
Under Construction
3 / 11 Alta Road CABOOLTURE
212
$3,000
$636,000
Under Construction
4 / 11 Alta Road CABOOLTURE
212
$3,000
$636,000
Under Construction
5 / 11 Alta Road CABOOLTURE
212
$3,000
$636,000
Under Construction
1 / 11 Alta Road CABOOLTURE
214
$3,000
$642,000
Under Construction
3/36-40 Alta Road, CABOOLTURE
225
$2,887
$649,500
Under Construction
16 / 36-40 Alta Road, CABOOLTURE
225
$2,887
$649,500
Under Construction
17 / 36-40 Alta Road, CABOOLTURE
226.1
$2,873
$649,500
Under Construction
1 / 27-31 Alta Road CABOOLTURE
229
$3,002
$687,500
Complete
5/44 Alta Road CABOOLTURE
464
$2,750
$1,276,000
Under Construction
1 / 27 Alta Road CABOOLTURE
1029
$2,350
$2,418,150
Complete
2 / 27 Alta Road CABOOLTURE
1067
$2,229
$2,378,050
Complete
39 Alta Road, CABOOLTURE
1300
$2,800
$3,640,000
Under Construction
59 Evans Drive CABOOLTURE
1384
$2,746
$3,800,000
Under Construction
59 Alta Road CABOOLTURE
3100
$2,806
$8,700,000
Under Construction
Current Lease Stock on Market Property
Size
Lease $m2
Lease $
Status
2/ 60 Evans Drive CABOOLTURE
171
$175
$30,000
Complete
4 / 60 Evans Drive CABOOLTURE
171
$175
$30,000
Complete
5/60 Evans Drive CABOOLTURE
171
$175
$30,000
Complete
Unit 5/ 27-31 Alta Road CABOOLTURE
179
$180
$32,220
Complete
Unit 2/ 27-31 Alta Road CABOOLTURE
198
$188
$37,224
Complete
Unit 3/ 27-31 Alta Road CABOOLTURE
198
$180
$35,640
Complete
Unit 4/ 27-31 Alta Road CABOOLTURE
198
$180
$35,640
Complete
Unit 1 / 27-31 Alta Road CABOOLTURE
229
$190
$43,510
Complete
2/44 Alta Road CABOOLTURE
230
$180
$41,400
Under Construction
3/44 Alta Road CABOOLTURE
230
$180
$41,400
Under Construction
1/44 Alta Road CABOOLTURE
247
$182
$45,000
Under Construction
4/44 Alta Road CABOOLTURE
260
$180
$46,800
Under Construction
8 / 60 Evans Drive CABOOLTURE
278
$179
$49,762
Complete
1/60 Evans Drive CABOOLTURE
297
$178
$52,800
Complete
6/ 16 Alta Road CABOOLTURE
363
$160
$58,080
Complete
7/ 16 Alta Road CABOOLTURE
394
$150
$59,100
Complete
5/44 Alta Road CABOOLTURE
464
$170
$78,880
Under Construction
5/ 56 Evans Drive, CABOOLTURE
466
$161
$75,000
Complete
4/2-12 Alta Road, CABOOLTURE
844
$160
$135,040
Complete
Warehouse 1/ 27-31 Alta Road CABOOLTURE
1029
$145
$149,205
Complete
Warehouse 2/ 27-31 Alta Road CABOOLTURE
1067
$140
$149,380
Complete
59 Evans Drive CABOOLTURE
1384
$160
$221,440
Under Construction
59 Alta Road CABOOLTURE
3100
$180
$558,000
Under Construction
Construction Progress
Your NGC Caboolture Team
Chris Massie Director 0412 490 840 chris.massie@raywhite.com
Aaron Canavan Commercial Principal 0447 744 948 aaron.canavan@raywhite.com
Troy Sturgess Sales & Leasing Executive 0432 701 600 troy.sturgess@raywhite.com
Natasha Grima Sales & Leasing Executive 0468 393 334 natasha.grima@raywhite.com
Michaela Webb Executive Assistant Chris Massie 0409 202 066 michaela,webb@raywhite.com
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