RAY WHITE COMMERCIAL NORTH COAST CENTRAL
3RD QUARTER 2018
IN THE KNOW COMMERCIAL PROPERTY FOCUS
MICHAEL SHADFORTH COMMERCIAL SPECIALIST 0488 981 076
SUNSHINE COAST OFFICE & RETAIL
WELCOME Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in the Northern Sunshine Coast. We hope you find this information useful and aim to continually keep you up to date so you can make informed decisions about your property.
EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446
Michael Shadforth
SUNSHINE COAST
MORETON BAY
1/172 Brisbane Road Mooloolaba QLD 4557
3/125 Morayfield Road Morayfield QLD 4506
T 1300 255 075 | F 1300 778 887
T 1300 255 075 | F 1300 778 887
JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331
DIRECTOR’S U P D AT E S SUNSHINE COAST
MORETON BAY
MICHAEL SHADFORTH CLOSER INSPECTION OF THE KEY FACTORS DRIVING THIS LATEST PERIOD OF SUSTAINED GROWTH SHOW THAT THE OPTIMISM IS WELL FOUNDED
CHRIS MASSIE THE LATEST PROJECTIONS THROUGH TO 2031 SEES BOTH MORETON BAY AND THE SUNSHINE COAST BRACED FOR ONE OF THE LARGEST POPULATION INFLUXES IN THE COUNTRY
Director Sunshine Coast
Cautious optimism seems to be the overwhelming consensus as I talk with business owners and investors across the coast. Years of boom and bust cycles have left many of us with a less than bullish attitude, but closer inspection of the key factors driving this latest period of sustained growth show that the optimism is well founded. So why is this time different? For one, the region is benefiting from an unprecedented public and private infrastructure investment of $26.5+ billion across a diverse number of projects. The most notable of which are the Sunshine Coast Airport upgrade, Bruce Highway and Caloundra Rd Interchange upgrade, Aura master planned community and the proposed Light Rail connection. The second factor is the sustained population growth, especially across the southern region. Strong medium-term growth projections are providing local businesses with that cautious optimism necessary to expand their operations and invest in new premises, staff and technology. The final piece of the puzzle is the new industry we are beginning to see moving to the coast. Improving technology means regional businesses can be more competitive on a world market and the traditional prestige of an “Eagle Street” address no longer yields the benefits to outweigh the monetary and lifestyle price tag of a CBD office.
Director Moreton Bay
Having worked in this region for over ten years, I clearly remember how difficult it used to be for businesses to justify moving to “the country”. Everything from skilled labour and transport issues through to the lack of good coffee were used as excuses to deal with the growing pains of inner city tenancies. But the tide seems to have turned in the last eighteen months and business owners are finding an increasing number of reasons to make the move north. The key word we keep hearing around Moreton Bay is growth. The latest projections through to 2031 sees both Moreton Bay and the Sunshine Coast braced for one of the largest population influxes in the country. While we all know that traditionally next year’s highway upgrades barely meet last year’s requirements, but the latest announced infrastructure enhancements will go a long way to insulating us from the inner-city headaches and will also see additional money flow into the pockets of local businesses. The key industry to watch over the next year is the transport and logistics industry. A number of national operators have earmarked Caboolture in particular as a satellite distribution hub to service the coming residential construction surge and ongoing last-mile ecommerce delivery requirements of this growing population. .
RAY WHITE COMMERCIAL NORTH COAST CENTRAL ANNUAL SALES & LEASING 56 Industrial
79 Industrial
14 Retail
48 Retail
7 Office
44 Office
4 Other
2 Land
6 Land
87 TOTAL SALES
173 TOTAL LEASED
SPOTLIGHT ON THE SUNSHINE COAST OFFICE AND RETAIL
THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL
Office and retail across the Sunshine Coast have proven very difficult to predict over the past year, with the market best explained via a combination of key types and areas. Shopping centres have been the major winner on the retail front, in spite of the doom-and-gloom stories of the sector on a national level. Decisive action by the key developers of centres like Sunshine Plaza and Kawana has allowed them to reposition their offering to meet the new Experiential Retail demands of today’s shoppers. The common consensus is, in the near future, that if a shopper wants a product they will go online, if they want an experience they will go to a shopping centre. The result will be an integrated combination of interactive retail outlets, cafes/restaurants and indoor entertainment businesses. More traditional local strip shops have been stable, but are experiencing increasing competition from the growing number of Coles, Woolworths, IGA and Aldi anchored neighbourhood centres. The foot traffic generated by these centres is attracting the fast food, hair, tobacconists and real estate agents that would normally occupy the strip shops. How this market adapts over the coming years is yet to be seen, but owners should be mindful of this trend.
The office market is experiencing sustained organic growth from the expansion of existing professional services in the region. The coming promise of the new Maroochydore CBD is seeing these businesses gravitate towards this precinct. This is currently occurring at the expense of the Kawana/Birtinya precinct, that is struggling to attract businesses not directly reliant on the nearby medical precinct. The announcement this week of the new undersea internet cable connection to the Sunshine Coast has the potential to significantly disrupt the vacancy take up projections that reflect almost complete reliance on existing business expansion. This new infrastructure creates the genuine possibility of attracting a “Google” calibre business to the coast, the impact of which would be immeasurable.
AV ERAGE S TAT IS T IC S
VACAN CI ES
SIZE
TOTAL LISTED
TOTAL TRANSACTIONS
SIZE
LAST QUARTER
THIS QUARTER
>200sqm
128
123
>200sqm
$420/M2
$428/m2
200-500sqm
47
58
200-500sqm
$328/M2
$350/m2
500sqm+
34
37
500sqm+
$280/M2
$260/m2
MARKET S TAT I S T I C S Ray White Commercial - North Coast Central RESEARCH TEAM The following is a summary of the key Listed and Leased / Sold properties in your neighbourhood
LISTED AGENCY
FOR LEASE
ADDRESS
SUBURB
NLA M2
PRICE
$/SQM
Ray White NCC
Lease
4/1 Metier Linkway
Birtinya
291m2
$45,000 Net $155sm2
Ray White NCC
Lease
21 Heathfield Street
Coolum Beach
204m2
$71,400 Net
$350m2
Ray White NCC
Lease
22/121 Mooloolaba Esplanade
Mooloolaba
86m2
$64,500 Net
$750m2
Ray White NCC
Lease
10/102 Burnett Street
Buderim
57m2
$28,400 Gross
$498m2
Ray White NCC
Lease
Tenancy 2, 14-22 Howard Street
Nambour
51m2
$7,800 Net
$153m2
Ray White NCC
Lease
15/224 David Low Way
Peregian Beach
186m2
$56,341 Net
$303m2
LEASED AGENCY
FOR LEASE
ADDRESS
SUBURB
NLA M2
PRICE
$/SQM
Ray White NCC
Lease
4/130-164 Brisbane Road
Mooloolaba
55m2
$7,000
$127m2
Ray White NCC
Lease
6/86 Burnett Street
Buderim
54m2
$16,740
$310m2
Ray White NCC
Lease
12/86 Burnett Street
Buderim
60m2
$19,760
$329m2
Ray White NCC
Lease
7/63 Karawatha Street
Buderim
59m2
$16,781
$284m2
Ray White NCC
Lease
8/63 Karawatha Street
Buderim
59m2
$16,520
$280m2
Ray White NCC
Lease
15/27 Evans Street
Maroochydore
225m2
$57,440
$255m2
WELCO M E TO T HE NEI G H B O U R H O OD
CASE STUDY GOING THE EXTRA MILE
FAST FACTS
1&5/10 Aerodrome Road, Maroochydore
• Address 1&5/10 Aerodrome Road, Maroochydore
The sale of these two units began with the marketing campaign of the ground floor Unit 1. After a number of genuine enquiries, the buyer-to-be inspected the unit and while sold on the premises & location, required more space. While most agents would move to the next interested party, Jordan & the team at Ray White NCC approached the owners upstairs, who were happy to receive market feedback. After lengthy negotiations and due diligence, an agreement was reached between all parties to sell the units in one line – to one satisfied buyer. A great example of how the team at Ray White NCC will go the extra mile to get the best results for their clients.
• Listed date 16 March 2018 • Marketing Spend $4,551.15 + GST • Inspections 4 • Offers 2 • Total enquiries 22 • Sale price $900,000 • Sale date July 2018 • Agent s Jordan Hayes 0417 999 331
Michael Shadforth 0488 981 076
Emily Pendleton 0402 435 446 • Agent comments Unit 1 – 103 sqm Unit 5 – 158 sqm 4 car spaces
AGENT PROFILE 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 North Coast Central office in 2014 as sales and leasing agent.
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 and leasing. Emily has a Certificate IV in Mortgage Broking
EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446 emily.pendleton@raywhite.com
She is currently studying for a BA degree in Property Economics and Development at the University of the Sunshine Coast. Originally from Melbourne, she has called the Sunshine Coast home since 2004.
RECENT NOTEWORTHY TRANSACTIONS D
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18/1 Newspaper Place, MAROOCHYDORE
T7/15-17 Ocean Street, MAROOCHYDORE
4/87 Mooloolaba Esplanade, MOOLOOLABA
• 106m2 of Office Space • Reception Area/Waiting Room • 1 x Separate Office • Large Lunch Room/Meeting Room
• 92m2 • Refurbished ground floor shop front • Great exposure and pedestrian foot traffic • Suitable for retail or office • Two exclusive car parks
• 61m2 Quality retail space located within the Sea Pearl building • 5900mm frontage • Access to grease trap and gas connections • Exclusive outdoor dining areas • Air-conditioned
Sold $380,000
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5/6-8 Aerodrome Road, MAROOCHYDORE
11&12/110 Sixth Avenue, MAROOCHYDORE
1/1 Heidi Street, KULUIN
• 99m2 approx. • Wide shop front with ample natural light • High exposure location to Aerodrome Rd • Front & rear access • Ample onsite car parking within the complex
• 30m2 and 25m2 • Minuets walking distance to the beach • Ample visitor car parking • Access to resort facilities and amenities
• 60m2 • Bustling little convenience hub • Ample onsite car parking • Well-established commercial and residential precinct
Sold $420,000
11 Sold $135,000 12 Sold $135,000
Sold $180,000
PROPERTIES SALE OR LEASE D SE NEEDE A E S
D SE NEEDE A E S
R L RTIE FOPROPE
R L RTIE FOPROPE
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11/87 Mooloolaba Esplanade, MOOLOOLABA
61-65 Sixth Avenue, MAROOCHYDORE
• 122m2 first floor quality office space • Tremendous location right on the beach • Natural light with Glass Frontage to the Hallway • Shower & toilets • Lift access • Undercover Car parking + three reserved Car Parks • Gross Lease, nothing further to pay
• 156m2 Located within high profile resort Beaches • Walking distance to the beach • High exposure corner location within the complex • Ample car parking surrounding • Large glass shop front with two entrances • Excellent signage opportunities • Quality fit out in place which can stay or be removed • Zoned for a variety of business - Medical/Consulting, Retail and Office
For Lease - $40,870 P/A Gross (Including Outs) + GST Michael Shadforth, Emily Pendleton
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For Lease - $62,400 P/A Net + GST Michael Shadforth & Emily Pendleton
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4/62 -66 Sixth Avenue, MAROOCHYDORE
10/102 Burnett Street, BUDERIM
• 58m2 • Ground floor position • Beautifully fitted out with good natural light • 2 Exclusive car parks undercover • Located within Aqua Vista complex with access to all resort amenities • Zoned for a variety of business - Medical/Consulting, Retail and Office
• 57m2 Area • Currently fitted-out • Located on-top Buderim • Disability access via ramps and internal elevator • Onsite amenities • Ample shared car parking at the rear of the building • Beautiful balcony at the front of the tenancy with an unbeatable view from the top of Buderim
For Sale- $330,000 Michael Shadforth & Emily Pendleton
For Lease - $28,400 P/A Gross Michael Shadforth & Emily Pendleton
For a full list of current opportunities for sale or lease visit raywhitecommercialnorthcoastcentral.com
ASSET MANAGEMENT RETAIL SHOP LEASES Not just for retail any more. . . 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. 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 prior to the tenant signing the lease
- Outgoings must be audited annually for net leases
- Leases must be registered within 3 months of signing by the tenant
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.
OUR TEAM ACHIEVED SIGNIFICANT RESULTS IN 2017 AND BY ALL ACCOUNTS 2018 IS SHAPING UP TO EXCEED THOSE LOFTY STANDARDS For all your industrial, commercial, project marketing and property management needs contact us on 1300 25 50 75 or visit our website for more information Facebook.com/rwcncc Twitter.com/rwcncc Instagram.com/rwcncc
OUR TEAM MICHAEL SHADFORTH COMMERCIAL PRINCIPAL 0488 981 076 michael.shadforth@raywhite.com
CHRIS MASSIE DIRECTOR 0412 490 840 chris.massie@raywhite.com
ASHLEY REES SENIOR COMMERCIAL PROPERTY ANALYST 0411 707 410 ashley.rees@raywhite.com
JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331 jordan.hayes@raywhite.com JASON WRIGHT COMMERCIAL ASSET INVESTMENT SUPPORT MANAGER 0451 497 368 jason.wright@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
BLAKE PRIMROSE SALES & LEASING EXECUTIVE 0423 555 043 blake.primrose@raywhite.com
WARWICK PETERS SENIOR BUSINESS BROKER 0412 234 231 warwick.peters@raywhite.com