Q3 2018 In The Know - Central Sunshine Coast | Ray White Commercial | Northern Corridor Group

RAY WHITE COMMERCIAL NORTH COAST CENTRAL

3RD QUARTER 2018

IN THE KNOW COMMERCIAL PROPERTY FOCUS

MICHAEL SHADFORTH COMMERCIAL SPECIALIST 0488 981 076

CENTRAL SUNSHINE COAST

WELCOME Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in Central 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 CENTRAL SUNSHINE COAST YOUR AREA UPDATE We define Central Sunshine Coast as the traditional industry hubs of Kunda Park and Forest Glen.

Large speculative development (1,000m2+) is unlikely to occur due to land prices and tight returns but expect some strata complexes to emerge over the next 18 months in the sub 400m2 range. This will likely have a negative impact on the slightly inflated values of Kunda Park in the last quarter of 2019, moving into 2020.

Kunda Park remains one of the most relevant estates in the Sunshine Coast industrial market.

The estate provides a strong mix of general industry and trade service businesses, primarily servicing the local area. As one of the major industry precincts, this area was among the hardest hit during the GFC, with significant vacancies and minimal construction. The tide has most definitely turned in recent years, to the point where availability of functional stock for lease or sale is extremely limited. The sale of the final few remaining land lots over the last 18 months, primarily to owner occupiers for rates up to $330m2, will do little to help supply demand.

THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL

In spite of this upcoming dip, the good news for property owners in this region is that demand across the Central Sunshine Coast region is expected to far outstrip supply in the medium and long term as increasing population pressure and transport issues closer to Maroochydore forces traditional industry users west.

While Forest Glen is experiencing similar low vacancy rates, the upcoming release of the new estate off Chevallum Rd on the western side of the highway will provide temporary relief.

Though it is rumoured that a major transport/ logistics company has secured a large parcel that will significantly reduce the footprint of available land. We anticipate the majority of activity in this new estate will be the natural expansion of owner occupiers in the immediate surrounding areas.

CURRENT DEVELOPED V FULLY DEVELOPED

Total Developed Area

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Total Area to be Developed

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 / SALE

ADDRESS

CITY

NLA M2

NETT PA

$/SQM

Ray White NCC

For Lease

16/24 Hoopers Road

Kunda Park

295

$36,000

$122

Ray White NCC

For Lease

9/24 Hoopers Road

Kunda Park

294

$49,500

$168

Ray White NCC

For Sale

6/34 Page Street

Kunda Park

108

$285,000

$2,639

Ray White NCC

For Sale

11/34 Page Street

Kunda Park

445

$770,000

$1,730

SETTLED AGENCY

FOR LEASE / SALE

ADDRESS

CITY

NLA M2

NETT PA

$/SQM

Ray White NCC

Sold

11/34 Page Street

Kunda Park

445

$660,000

$1,483

Ray White NCC

Sold

14 Page Street

Kunda Park

506

$875,000

$1,729

Ray White NCC

Sold

9/24 Hoopers Road

Kunda Park

294

$560,000

$1,905

Ray White NCC

Leased

2B/49 Industrial Ave

Kunda Park

273

$28,665

$105

Ray White NCC

Leased

1A/49 Industrial Ave

Kunda Park

288

$46,560

$162

WELCO M E TO T HE NEIG H B O U R H O O D

discountglass.net.au

creativestone.net.au

CASE STUDY DELIVERING RESULTS

FAST FACTS

This property was listed for sale at $875,000. Multiple offers were received and the property sold for asking price of $875,000 in 36 days on the market.

• Address 14 Page Street, KUNDA PARK

The Property is strategically located in the established CBD location of Kunda Park. Situated just 4.7 kms from the Bruce Highway and 10 kms to the Sunshine Coast Airport.

• Listed date 16 March 2018

The property offers 506m2* of GFA on a 1,046m2* site with a tenant in place until 2020.

• Rate/m2 $836.52 • NLA 506m2 • Site Area 1,046m2 • Net Income $65,000 per annum • Yield 7.4% • Building Rate/m2 $1,729.24 • Sale price $875,000 • Sale date April 2018 • Agent s Emily Pendleton 0402 435 446

Michael Shadforth 0488 981 076

Jordan Hayes 0417 999 331

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.

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11/34 Page Street, KUNDA PARK

14 Page Street, KUNDA PARK

9/24 Hoopers Road, KUNDA PARK

• 445m2 Ground Floor area • Approx. 205m2 of additional mezzanine • Clean & tidy industrial complex • High clearance roller door • Off-street car parking

• Building: 506m² of GFA • 1,046m2* site • Zone: Medium Impact Industry Zone • Premium location • Tenant in place until 31 May 2020.

• 294m2* warehouse / GF showroom • 30m2* office mezzanine • 6m* high roller door • Toilet & kitchenette facilities • Solar panels installed

Sold $660,000

Sold $875,000

T AC DED R E T E

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D R UN ORE P M

Sold $560,000

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D R UN ORE P M

1-3 Kessling Avenue, KUNDA PARK

6/3 Hitech Drive, KUNDA PARK

22 Fishermans Road, KULUIN

• Currently tenanted for $145,074.12 p.a.* • Under 10% site coverage • Premium industrial precinct close to Bruce Highway & Sunshine Motorway • 8,305m² / 2.05 acres

• 166m2 open plan warehouse • High clearance roller door • 3 phase power • Kitchenette and toilet facilities • Ample onsite car parking

• Gross floor area of 347m2 • 139m2 of mezzanine • set on 1,000m2 • Dual roller door access • Retail showroom & separate office space

Under Contract

Under Contract

Under Contract

PROPERTIES SALE OR LEASE ED LE NEED A S ES

ED LE NEED A S ES

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5/31 Enterprise Street, KUNDA PARK

5 Avian Street, KUNDA PARK

PRICE REDUCED TO SELL!!

• 278m2 • Clean and tidy concrete slab unit • Full height roller (4.2m2 approx. high) personal door • Easy access for trucks • Two exclusive use car parks • Internal toilet and kitchenette amenities • Security alarm system installed

• 637m2 Land Area • 272m2 GFA + hardstand (approx. 350m2) • Additional mezzanine (approx. 40m2) • High clearance roller door • Off-street car parking • Separate shower & toilet

For Sale - $483,000 + GST Emily Pendleton & Michael Shadforth

E DED AS S NEE E L IE

For Sale - $560,000 Emily Pendleton & Michael Shadforth

E DED AS S NEE E L IE

R RT FOPROPE

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1 & 2/526 Maroochydore Road, KUNDA PARK

16/24 Hoopers Road, KUNDA PARK

Two tenancies for lease separately or combined • Land Area - Lot 1, 3,424m2 | Lot 2, 2 1,904m2 • Building Area - Lot 1, 2,016m2 | Lot 2, 1,264m2 • External hardstand attached • Cold rooms & freezers • Grease trap connections • Toilet facilities • Ample onsite car parking

• 295m2 • High clearance warehouse • Reception on ground floor via glass personal access door • First level office/boardroom area with air-conditioning • Internal toilet, shower and kitchenette • 6m high roller door • Two exclusive car parks

For Lease - $436,000 NET P/A Emily Pendleton & Michael Shadforth

For Lease - $36,000 P/A NET Emily Pendleton & Michael Shadforth

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