In The Know - North Brisbane Q2 2019 |Ray White Commercial | Northern Corridor Group

Page 1

NORTH BRISBANE

FOR SALE $350,000 16-20 Blackwood Street, Mitchelton

PETER LAURENT 0429 391 675

SALES & LEASING EXECUTIVE

ONE TEAM - THREE LOCATIONS

JUMA MARSTELLA 0450 360 321

SALES & LEASING EXECUTIVE

TREVOR NELSON-JONES 0407 736 521

SALES & LEASING EXECUTIVE

BROCKE HAMBRECHT 0466 599 724

SALES & LEASING EXECUTIVE

2 ND QUARTER 2019


DIRECTOR’S U P D AT E S

NORTHERN CORRIDOR GROUP

CHRIS MASSIE

MICHAEL SHADFORTH

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

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.

outstripping supply through 2019. Director Moreton Bay

DIRECTOR UPDATE

Director Sunshine Coast

ONE TEAM - THREE LOCATIONS

If the first quarter of 2019 is any indication, the Northern Corridor remains well positioned to capitalise on the key sectors of the market currently performing well. But this growth will not be without its frustration. Finance is proving to be a significant hurdle and this is particularly true for owner occupiers. Lending criteria is tightening and typical approval times are blowing out beyond 45 days as the number of “hoops” being imposed by financiers increases. Frustration is also coming in the form of stock shortages for functional industrial buildings across almost all suburbs. But as they say in golf “Every shot makes someone smile”. . . The result of these two issues has been an uplift in leasing demand and a willingness of tenants (all be it begrudgingly) to commit to off-plan leases for yet to be constructed buildings. Rumours of a further interest rate cut has investors scrambling to find a return on their money, providing a strengthening market for these newly constructed investments with or without tenants. While an extended Easter break and an election provide excuses for those without the true need for action to delay decisions, we are seeing enough demand across most sectors that any second quarter dip will quickly be corrected through the traditionally strong third quarter.

Infrastructure spend continues to be a major driver of commercial activity across the Norther Corridor. Our team has been working closely to combine high level research with agent feedback from the front line to explore just how significant these projects are for business and the results have been very interesting. Business confidence off the back of several solid years is seeing the absorption of office space improving. Minimal built form industrial stock has resulted in businesses turning to vacant land to design and construct their facilities to meet demand. Neighbourhood shopping centre vacancies across the Sunshine Coast in particular are at record lows, bucking the trend of softening retail across the country. Assuming no major world events, all lead indicators have us predicting a relatively stable and prosperous two years across the Northern Corridor. The crystal ball starts to get foggy after 2020, when major infrastructure projects are scheduled to be complete. It will be at this time that the strength of the market will be dictated by the success of our local and state governments to attract the major businesses that can benefit from this new infrastructure.

RAY WHITE COMMERCIAL NORTHERN CORRIDOR 2019 FIRST QUARTER SALES & LEASING Q1 Sales $16,588,360 11 Industrial 4 Retail 2 Office 4 Land

Q1 Leases $1,761,728.95

21 TOTAL SALES

26 Industrial 16 Retail 7 Office 3 Other

52 TOTAL LEASED


NORTH BRISBANE

NORTHERN CORRIDOR GROUP

THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT PETER LAURENT OF THE NORTHERN CORRIDOR GROUP

YOUR AREA UPDATE Stock levels have tightened again over the first quarter of 2019 across most North Brisbane market sectors. In spite of the strong performance of the area, agents are reporting a level of anxiety among industrial business owners that is combining with low stock availability to cause a larger than average gap between enquiry levels and actual deals transacted. In spite of this fear, there are still enough businesses backing their medium term success and expanding into new properties.

Investor demand is strengthening further with rumours of another interest rate cut before year’s end. It has been interesting to note that the same neighbourhood retail centres mentioned previously are now a sought-after flavour for investors as well. Now could be the time for those owners with fresh leases and a memory of recent vacancy troubles to package up and offer their property to the waiting masses of those hunting for a return on their money.

The industrial markets of Geebung, Banyo, Northgate and Virginia are all experiencing strong enquiry for properties under 800m2. Much of this is being driven by the construction and trade services industries, with the trend continuing of home based “tradie” contractors taking on additional staff and equipment that necessitates a transition into commercial premises. Lack of land through these precincts has led to a flow of larger operators moving into purpose built facilities in Brendale, which has freed up some larger options.

Easter is traditionally a high enquiry and internet traffic period, so owners with vacancies should talk with their agents to ensure they are well positioned and that properties are looking their best.

Secondary strip retail has been the surprise stand out performer across North Brisbane for the last six months. The traditional hubs of Chermside and Kedron have performed well, but so have the small neighbourhood retail and convenience centres across the region. An even mix of established businesses and start-ups have taken up space in a market segment that has struggled for years. Closer analysis of this demand shows no one category is responsible for the activity, with fast food, hair & beauty, pets, personal services, specialty and convenience retail all represented. Where retail has excelled, office has struggled across the fringe market. Some demand still remains for sub 150m2 tenancies, but larger footprint office space of 200m2+ are struggling to attract interest. This is especially true for the B and C grade space. We expect this to improve in the medium term as connectivity and staff amenity overtake a CBD post code as desirable attributes, but in the meantime owners should look to meet the market on shorter term leases or refurbish to outshine the competition.

NORTH BRISBANE COMMERCIAL REAL ESTATE SUPPLY & DEMAND INDUSTRIAL / WAREHOUSE - FOR LEASE

45%

40%

40%

Listings

35%

Leads

35%

Listings

Leads

30%

30%

25%

25%

20%

20%

15%

15%

10%

10%

5%

5% 0%

NORTH BRISBANE COMMERCIAL REAL ESTATE SUPPLY & DEMAND INDUSTRIAL / WAREHOUSE - FOR SALE

100

250

500

1000

Property m2

2000

4000

4000+

0%

100

250

500

1000 Property m2

2000

4000

4000+


NORTH BRISBANE ACTIVITY

NORTHERN CORRIDOR GROUP

Ray White Commercial, Northern Corridor Group RESEARCH TEAM. A summary of the key Listed, Leased and Sold property data in your area.

LISTED SALE/ LEASE

ADDRESS

SUBURB

TYPE

BUILDING AREA (M2)

PRICE P/A

Sale

14/104 Newmarket Road

Windsor

Retail

194m2

POA

Sale

17-18/115 Robinson Road

Geebung

Industrial

240m

POA

Sale

5/16-20 Blackwood Street

Mitchelton

Office

Sale

6/131 Bunya Road

Arana Hills

Industrial

Lease

1/2277 Sandgate Road

Boondall

Retail

Lease

1/601 Nudgee Road

Nundah

Showroom

Lease

3B2/143 St Vincents Road

Virginia

Lease

37A Crockford Street

Lease

2

95m2

$369,500

950m2

POA

75m2

NET OR GROSS

-

$19,500

Gross

2

$114,720

Net

Industrial

1,291m2

$64,550

Net

Northgate

Industrial

357m

2

720 Gympie Road

Chermside

Retail

60m

2

$19,240

Lease

15/210 Robinson Road

Geebung

Industrial

1,143m

2

$154,350

Net

Lease

1/235 Zillmere Road

Zillmere

Retail

115m2

$50,400

Gross

Lease

7/691 Albany Creek Road

Albany Creek

Office

111m2

$38,850

Gross

Lease

3 Chapel Street

Nundah

Retail

115m

2

$25,000

Net

Lease

G2/468 Enoggera Road

Alderley

Retail

115m2

$37,960

Net

Lease

1A/605 Zillmere Road

Zillmere

Industrial

Lease

3C1/90 Kittyhawk Drive

Chermside

Lease

20B Lathe Street

Virginia

Lease

201 Stafford Road

Lease

1/3 Chapel Street

478m

POA

Gross

1,776m

2

$248,640

Net

Retail

204m

2

POA

Industrial

833m2

POA

Stafford

Retail

135m2

POA

Nundah

Office

35m

POA

-

2

LEASED STATUS

ADDRESS

SUBURB

TYPE

LEASED

779B Gympie Road

Chermside

Retail

LEASED

8/210 Robinson Road

Geebung

LEASED

3/29 Timms Road

Everton Hills

LEASED

4/725 Gympie Road

Chermside

LEASED

11/15 Landy Street

LEASED

BUILDING AREA (M2) 80m2

LEASED P/A $29,000

Industrial

735m

2

$99,225

Industrial

149m2

$18,000

Retail

80m2

$37,665

Northgate

Industrial

78m

2

$8,790

5/35 Radley Street

Virginia

Industrial

340m

2

$36,000

LEASED

3/265 Blaker Road

Keperra

Retail

25m

2

$9,800

LEASED

Suite 3/67 Robinson Road

Geebung

Office

139m

2

$41,000

NET/ GROSS Gross + GST Net

$/SQM $362 $135

Net Gross + GST Net

$120

Net Gross + GST Net

$105

$470 $112 $392 $294


DEDICATED SERVICE We manage your property like it’s our own... We constantly look at strategic value-add initiatives to improve your property’s capital value whilst driving your investment and maximising its returns. Our specialist management team negotiates on your behalf to generate maximum return to you for every lease and tenancy, always focusing on improving your yield. You can rely on us to manage your administrative processing and reporting as well as protecting and growing your asset at all times. We manage all repairs and maintenance, establishing and negotiating maintenance contracts to reduce outgoings. We proactively rectify issues before they become problematic and undertake regular reviews, using our group buying power to improve cost efficiencies.

We understand and have thorough working knowledge of commercial property legislation to ensure your legal obligations are managed. We also keep abreast of legislative changes by way of professional development courses. Our aim is to tailor our service to your requirements and investment goals. Contact our property managment team today: Cassie Mahoney, Commercial Asset - Portfolio Manager 1300 25 50 75 | cassie.mahoney@raywhite.com Staci Tobin, Commercial Property Manager - Pine Rivers 07 3889 8000 | staci_tobin@raywhite.com Shaun Gerritsen, Property Maintenance & Compliance 1300 25 50 75 | nccmaintenance@raywhite.com

Retail Shop Leases Recent changes to the Retail Shop Leases Amendment Act 2016 has the potential to impact property owners of what would traditionally be considered industrial units, exempt from the additional obligation and expense of the Act. New definitions of what constitutes a Retail Shop now includes any business interacting face to face with customers. What this means for industrial property owners is the traditional Commercial Tenancy Agreement (CTA) used by many owners and agents will no longer provide certainty of tenure and could even see the owner liable for damages, if used in the wrong scenarios. Until the dust settles on this new legislation and the precedents are set in stone, the safest course of action is to seek advice from your solicitor or call our property management team and talk through the implications for your property.

So what does a Retail Shop Lease (RSL) mean for owners? The key differences are as follows:

• RSL preparation costs cannot be passed on to the tenant

• Land tax and sinking fund levies are not recoverable outgoings under an RSL

• Detailed outgoings must be disclosed atleast 7 days prior to signing

• Outgoings must be audited annually for net leases

• Leases must be registered within 3 months of signing by the tenant

Staci Tobin, Commercial Asset - Portfolio Manager 07 3889 8000 | staci_tobin@raywhite.com


RECENT NOTEWORTHY TRANSACTIONS NORTHERN CORRIDOR GROUP

ED

! EED LD ES N SO ERTI

R

41-45 Kremzow Road, BRENDALE • Land Area is 8094m2 • Building Area is approximately 2468m2 with an awning extension of 784m2 • Customer Car park at the front (16) & Staff Car parking at the rear (34) • Six roller doors provide easy access • Easy vehicular access to rear of property

OP

R EP

MO

Sold - $3,925,000 [Agent - Trevor Nelson-Jones] ED

D D! NEE OL TIES

S

P

RO

12 STATION ROAD, LAWNTON • 2 lots with a combined land area of 1330m2 • Close proximity to the proposed new University and subject to Council Approval • Ideal for multi level Unit development • Adjoining properties includes BFC Lawnton Camping and Boating Outlet and the Mother Duck Child Care Centre

ER

EP

R MO

Sold - $580,000 [Agent - Trevor Nelson-Jones] ED

D D! NEE OL TIES

S

MO

128 Broads Road, CLOSEBURN • 54.18ha* • On one title • Current zone Rural Res • Bitumen road to front gate • 28.45Km* to Brisbane CBD • Less than 5km* to Samford Village * Approximate

R

PE

RO

P RE

Sold - $1,200,000 [Agent - Trevor Nelson-Jones] ED

D D! NEE OL TIES

S RE

MO

8/128 South Pine Road, BRENDALE • 295m2* on the ground • 200m2* Mezzanine Floor Area • Zoned Commercial • Current income $44,745.00* Nett • Current tenant on month to month • Fronting onto South Pine Road * Approximate

ER

P

O PR

AGENT PROFILES

TREVOR NELSON-JONES 0407 736 521

SALES & LEASING EXECUTIVE Trevor has a 33 year association with the Pine Rivers District and Brendale in particular where with his wife Cheryl set up and successfully managed their own retail business for nearly 17 years. Trevor’s management skills played a major role in the success of the business. Central to this success is his ability to communicate and interact with the public. Trevor has a number of other interests in the community such as being Chairman of the Board of Brendale Community Bank Branch of Bendigo Bank and also President of the Northern Bayside Schools Industry Links Scheme. Trevor has 43 years experience in sales and marketing in both Australia and the UK. He understands the importance of building relationships with clients, and places great emphasis on maintaining his integrity with those clients. You will find Trevor to be thoroughly reliable and honest in all his dealings.

Sold - $585,000 [Agent - Trevor Nelson-Jones] ED

D D! NEE OL TIES

S

MO

• Single title • 2063m2* allotment • 1000m2* building • 5 Tenancies • 4 Tenants • Nett income $84,479.95 • Outgoings fully recovered

R

PE

RO

P RE

19 Moonbi Street, BRENDALE

Sold - $1,230,000 [Agent - Trevor Nelson-Jones] ED

! EED LD TIES N O S ER

MO

P

RO

P RE

5/126 South Pine Road, BRENDALE • 143m2* • Office area • Zoned general industry • Allocated car parks • 3 Phase power • Own internal amenities * Approximate

Sold - $260,000 [Agent - Trevor Nelson-Jones]

JUMA MARSTELLA 0450 360 321

SALES & LEASING EXECUTIVE Covering both sales and leasing Juma is recognised as a Northern specialist, his responsibilities include investment and vacant possession sales as well as leasing across all assets classes. Always working with his clients best interest in mind, Juma draws on his 5 years plus experience to provide exceptional service to a loyal following of clients. He is well respected for his ability and integrity and approaching every transaction with focus and keen dedication.


PROPERTIES FOR SALE OR LEASE NORTHERN CORRIDOR GROUP

E AS ED E L ED

R NE E O IES

F

L RT SA ROPE R O EP

E DED AS S NEE E L IE

R RT FOPROPE RE

R

MO

MO

17-18/115 Robinson Road, GEEBUNG

14/104 Newmarket Road, WINDSOR

• 240m2 Industrial warehouse • Air conditioned office with storage located on the first floor • 3 phase power • CCTV Downstairs • x2 Roller doors offering convenient access • Ability to configure for full height storage • Amenities with shower • x2 on site car spaces

• 194m2 Food site with flexible options • Complete stainless kitchen fitout + cold room • Outdoor seating area • Onsite amenities • Allocated parking for 7 cars • Awning signage • Lessor will consider all reasonable offers

For Sale or Lease - Price upon application Juma Marstella & Brocke Hambrecht

For Sale or Lease - Price upon application Juma Marstella

ED LE NEED A S ES

R TI FO ROPER

RE

MO

P

ED LE NEED A S ES

R TI FO ROPER

RE

MO

P

17 Belconnen Crescent, BRENDALE

11/37 Kremzow Road, BRENDALE

• Land area 3174m2* • Building area 665m2* • Concrete Hardstand 2000m2* • Full security fence and gates • 45m2* A/C ground level office • 620m2* Workshop/warehouse • 35m2* Wash down bay •Internal amenities

• Zoning: General Industry • Land Area: 2740m* • Building Area: 1321.46m* • Office Area: 43.2m* • Clear Span Area: 66m x 19m* • Workshop Access: 2 Container Height Roller Doors • Local Authority: Moreton Bay Regional Council • Gantry Cranes: 2 x 10 Tonne Service

* Indication only

* Indication only

For Sale - $1,750,000.00 Exc GST Trevor Nelson - Jones

For Sale - $1,750,000.00 Exc GST Trevor Nelson - Jones

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


OUR TEAM

NORTHERN CORRIDOR GROUP

PINE RIVERS PETER LAURENT SALES & LEASING EXECUTIVE 0429 391 675 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

MORETON BAY

SUNSHINE COAST

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

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

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

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

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

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

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

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

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

PINE RIVERS

MORETON BAY

SUNSHINE COAST

Level 1, 104 Gympie Road Strathpine, QLD 4500

3/125 Morayfield Road Morayfield QLD 4506

1/172 Brisbane Road Mooloolaba QLD 4557

T 1300 255 075 F 1300 778 887

T 1300 255 075 F 1300 778 887

T 1300 255 075 F 1300 778 887

raywhitecommercialnortherncorridorgroup.com.au

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