RAY WHITE COMMERCIAL NORTH COAST CENTRAL
WELCOME
CHRIS MASSIE DIRECTOR 0412 490 840
CABOOLTURE
Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in Caboolture and across the greater northern corridor.
ASHLEY REES SENIOR PROPERTY ANALYST 0411 707 410
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. Kind regards,
Chris Massie
AARON CANAVAN SALES & LEASING EXECUTIVE 0447 744 948
Ashley Rees
MORETON BAY
SUNSHINE COAST
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
BLAKE PRIMROSE SALES & LEASING EXECUTIVE 423 555 043
3RD QUARTER 2018
IN THE KNOW COMMERCIAL PROPERTY FOCUS
DIRECTOR’S U P D AT E S MORETON BAY
SUNSHINE COAST
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
MICHAEL SHADFORTH CLOSER INSPECTION OF THE KEY FACTORS DRIVING THIS LATEST PERIOD OF SUSTAINED GROWTH SHOW THAT THE OPTIMISM IS WELL FOUNDED
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. .
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.
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 C O R P O R AT E PA R K CORPORATE PARK Corporate Park continues to be the preferred location for businesses servicing the local Caboolture area but shrinking stock supply and increasing demand from national operators is changing the dynamic of the estate.
The last eighteen months has seen a significant increase in leasing take up, leading to a current occupancy level of over 98% and barely a handful of functional tenancy options available in each size bracket. In spite of the limited stock, our team completed $12,683,260 of sales and secured $1,561,325 of annual rent for our owners in the last twelve months. It should be noted that 42% of the sales were off-market transactions of tenanted investments. Relief for this stock squeeze will come in the form of Corporate Park East, which is now fully approved and will commence construction this September. The first stage will see 19 lots released, but it is likely that pent up expansion demand will necessitate the immediate roll-on into stage 2.
Since its development in the early 90’s, the estate has catered almost exclusively to local business, with a mix of owner-occupier and self-managed super fund fueled speculative development for tenants. The result has been an average tenancy size under 400m2 and few options for larger businesses. Increased congestion closer to the city and an unrivalled pipeline of upcoming development and growth for the Moreton Bay and Sunshine Coast regions has Caboolture now on the hit list for larger national companies looking to service this coming demand.
VACAN CI ES
THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL
While new construction will provide some relief on demand, we anticipate sustained upward pressure on average base rental rates and a slight increase in overall asset values for existing properties. In any case, the next two years will be an interesting period for the Corporate Park market
AV ERAGE NET RENT
SIZE
THIS QUARTER
SIZE
THIS QUARTER
>200sqm
3
>200sqm
$134sqm
200-500sqm
8
200-500sqm
$112sqm
500sqm +
7
500sqm +
$108sqm
TOTAL
18
TOTAL
$118sqm av
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 properties in your neighbourhood
LISTED AGENCY
ADDRESS
CITY
BUILDING AREA
NETT PM NET
Ray White NCC
13A/23-25 Skyreach Street
CABOOLTURE
40 sqm
$1,000
Ray White NCC
31-33 Lear Jet Drive
CABOOLTURE
1200 sqm
$13,000
Ray White NCC
2/4-6 Boeing Place
CABOOLTURE
630 sqm
$5,775
Ray White NCC
7/18-20 Cessna Drive
CABOOLTURE
237 sqm
$2,370
Ray White NCC
2/23-25 Lear Jet Drive
CABOOLTURE
295 sqm
$2,700
BUILDING AREA
LEASE PRICE
LEASED AGENCY
ADDRESS
CITY
Ray White NCC
55-57 Lear Jet Drive
CABOOLTURE
1150 sqm
$150,000
Ray White NCC
2/8 Piper Street
CABOOLTURE
591 sqm
$63,072
Ray White NCC
1A/22-24 Aerodrome Road
CABOOLTURE
527 sqm
$55,000
Ray White NCC
5 & 6/18-20 Cessna Drive
CABOOLTURE
474 sqm
$51,600
Ray White NCC
1/18-20 Lear Jet Drive
CABOOLTURE
508 sqm
$48,000
Ray White NCC
5/41-45 Cessna Drive
CABOOLTURE
342 sqm
$34,200
WELCO M E TO T HE NEI G H B O U R H O OD
61 MORAYFIELD RD, CABOOLTURE SOUTH, 07 5428 2341
CASE STUDY OFF MARKET FIND
FAST FACTS
Another major asset has transacted on Caboolture’s Corporate Park. This prominent complex fronting Bribie Island Road was sold by Chris Massie and Ashley Rees in an off-market transaction that has further cemented the industrial rates for the region.
•P roperty type Tenanted/Industrial
The fully leased complex boasts 2,100m2 of tilt panel building on 4,000m2 across two titles and reflected a yield of 7.2%. The majority of the complex is occupied by the former owners, who will remain on as tenants.
• Address 34-36 Cessna Drive, Caboolture QLD
The deal provides the perfect outcome for a buyer with a very specific appetite and a seller who can invest back into their business to facilitate expansion that might not otherwise be possible. This is the forth off-market sale of a stand-alone industrial asset completed by Ashley and Chris on this estate in the last twelve months.
• Listed date Off Market • Land size 4,000m2 • Building size 2,100m2 • Net rent $252,000pa • Yield 7.2% • Sale price $3,500,000 • Sale date 01 Aug 2018 • Agent s Chris Massie 0412 490 840 Ashley Rees 0411 707 410 • Agent comments This was a true ‘match-maker’ situation, where knowing each party’s particular situation allowed us to structure a great outcome for all involved.
AGENT PROFILE Aaron joined our Commercial North Coast Central team as a Leasing Associate in 2014, following a career as a professional golfer & fulltime member of the PGA, playing professional tournaments and coaching the game for nearly three years. Aaron quickly became an integral part of our sales and leasing team and has a true passion for the Moreton Bay market, having lived in the area most of his life.
Aaron understands what it takes to achieve success and prides himself on his ability to understand people and listen to their needs. In Financial Year 2016/2017 Aaron received his first Premier Agent award within the Ray White group, which he has maintained each year since.
AARON CANAVAN SALES & LEASING EXECUTIVE 0447 744 948 aaron.canavan@raywhite.com
RECENT NOTEWORTHY TRANSACTIONS D!
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2/29 Cessna Drive CABOOLTURE
2/37 Cessna Drive CABOOLTURE
2 /42 Cessna Drive CABOOLTURE
• 320m2 warehouse + ground floor office • Currently has a month to month tenant • Holding income of $3,000 per month • Front & rear roller door access • Toilet amenities & kitchenette
• 315m2 (approx) clear span warehouse • Air conditioned office • 3 year lease • Returning $31,620.00 per annum Net • Kitchenette + Internal amenities
• 481m2 Modern Industrial premises • 323m2 ground floor and 158m2 first floor office space • Kitchen/lunch room + internal amenities • 4 x first floor offices
SOLD $495,000
SOLD $400,000
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• 474m2 Warehouse Facility • 400m2 Open Warehouse with 74m2 Office • 2x Electric Container Height Roller Doors • Secure Gated Complex with CCTV
Leased $51,600 PA
D
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R MO
5 & 6/18-20 Cessna Drive CABOOLTURE
SOLD $715,000
PR
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A T LE OPER R
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2/6-8 Piper Street CABOOLTURE
55-57 Lear Jet Drive CABOOLTURE
• Air-conditioned • Front & rear 5m high roller door access • Ample parking in complex • 3 phase power provision • Mezzanine office floor
• 1150m2 Under roof compromising of: • 850m2 Clearspan warehouse • 300m2 Airconditioned showroom • High power supply • Front & rear roller door access
Leased $56,000 PA
Leased $150,00 PA
GENERAL INDUSTRY LAND PURPOSE BUILT LEASE HARDSTAND LEASE
Port of Brisbane
Brisbane CBD North Lakes
Brendale
North Harbour
Corporate Park
The opportunity Bruce HWY 3 Mins
Airport 25 Mins
You can now secure fully serviced General Industry land lots in Caboolture’s first estate release for over ten years. Corporate Park, at the Bribie Island Rd and Bruce Highway interchange, has long been the area’s preferred location for industrial tenants and owneroccupiers in Moreton Bay. The estate is now at capacity, so eyes are turning to the next release of Corporate Park East. Contact us today for a price list or to help design your ideal premises.
Port of Brisbane 30 Mins
Ray White Commercial North Coast Central
CHRIS MASSIE chris.massie@raywhite.com 0412 490 840
ASHLEY REES ashley.rees@raywhite.com 0411 707 410
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 JASON WRIGHT For all your industrial, commercial, project marketing and property management needs contact us on 1300 25 50 75 or visit our website raywhitecommercialnorthcoastcentral.com 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 423 555 043 blake.primrose@raywhite.com
WARWICK PETERS SENIOR BUSINESS BROKER 0412 234 231 warwick.peters@raywhite.com