RAY WHITE COMMERCIAL NORTH COAST CENTRAL
CHRIS MASSIE DIRECTOR 0412 490 840
MORAYFIELD & CABOOLTURE CDB
WELCOME Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in Morayfield / Caboolture CBD 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 MORAYFIELD & CABOOLTURE CBD
MORAYFIELD & CABOOLTURE CBD The tide is definitely turning for what has traditionally been a relatively slow-moving sector of South East Queensland. The impact of improving market conditions experienced by the greater region over the last three years has been largely offset by the change in consumer spending habits and the fear of the Amazon impact on traditional retailers that make up the bulk of Morayfield tenancies.
to open up this corridor to development can expect to cause a stale mate between developers and authorities for years to come. In the meantime, infill development of medium density residential in Caboolture and traditional residential through western Morayfield (Oakey Flat Rd, etc) is at fever level. The result for retailers is a general improvement in business confidence among those we speak with that expansion today is a calculated risk worth taking to ensure their piece of the ever-growing pie is secured. For office space, the government funded agencies continue to soak up the little remaining office space in the CBD and owner occupiers have returned to the market via a number of building purchases through King St and Hasking St.
While the Morayfield retail and Caboolture office markets are different enough to probably warrant their own reports, the main key driver that will continue to impact them is the same. This driver is residential growth. Caboolture West is expected to result in an estimated 63,000 additional residents, but the level of infrastructure investment required
THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL
Watch for a continued trend of office users retro-fitting Morayfield retail sites to accommodate larger footprint requirements where zoning permits, especially among Government funded tenants. Also, keep an eye on Dickson Road, where the new Morayfield Health Hub is drawing considerable traffic to the benefit of adjoining businesses.
RETA IL
O F F I CE
SIZE
THIS QUARTER
SIZE
THIS QUARTER
>100sqm
24
>100sqm
13
100-200sqm 13
100-200sqm 15
200sqm +
11
200sqm +
TOTAL
48
TOTAL 40
12
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 FOR SALE / LEASE
ADDRESS
Ray White NCC
Lease
15/42-44 King Street
Caboolture
61m2
$1,610
$316
Ray White NCC
Lease
4/8-22 King Street
Caboolture
82m2
$2,290
$335
Ray White NCC
Lease
2/286 King Street
Caboolture
90m2
$3,333
$444
Ray White NCC
Lease
B1/19 Hasking Street
Caboolture
95m2
$2,375
$300
Ray White NCC
Lease
3/25 Morayfield Road
Morayfield
64m2
$1,600
$300
Ray White NCC
Lease
4/25 Leda Boulevard
Morayfield
117m2
$3,120
$320
FOR SALE / LEASE
ADDRESS
AGENCY
SUBURB
NLA M2
PRICE
$/SQM
LEASED AGENCY
SUBURB
NLA M2
PRICE
$/SQM
Ray White NCC
Lease
18/1-21 Pettigrew Street
Caboolture
240m2
$7,166
$358
Ray White NCC
Lease
5/42-44 King Street
Caboolture
62m2
$1,627.50
$315
Ray White NCC
Lease
16 King Street
Caboolture
112m2
$3,173
$340
Ray White NCC
Lease
100/60-78 King Street
Caboolture
600m2
$18,357
$367
Ray White NCC
Lease
3/65 Morayfield
Morayfield
150m2
$4,375
$350
Ray White NCC
Lease
2/67-73 Morayfield Road
Morayfield
134m2
$3,685
$330
WELCO M E TO T HE NEI G H B O U R H O OD
CASE STUDY FOCUS ON LOCATION
FAST FACTS
The transformation of Caboolture’s main street and CBD continues, with the recent sale of 9 King Street. Chris Massie and Ashley Rees negotiated the sale on behalf of the owner who was originally looking to lease, but long-term vacancy prompted the sale when the right offer hit the table.
•P roperty type Commercial Office
The 411m2 freehold building was purchased by Moreton Eye Group as part of their continued expansion in the region. While the unique layout of the former bank building proved problematic in re-leasing, the key features of location and on-site parking perfectly met the buyer’s needs.
• Address 9 King Street, Caboolture, QLD
This is the latest in a string of CBD sales completed by Chris and Ashley that has resulted in over $7m of properties selling or going under contract. Increasing activity from government funded tenants and reduced vacancy is expected to continue putting upward pressure on both sale and leasing rates in the area.
• Listed date: Lease to Sale • Marketing Spend $1,220 • Sale date: 15 Aug 2018 • Sale price $1,360,700.00 • Building Land size 411m2 831m2 • Agent s
Chris Massie 0412 490 840 Ashley Rees 0411 707 410
• Agents comments “Low interest rates continue to fuel the owner-occupier market, with low stock levels prompting sale offers on lease stock”
AGENT PROFILE Chris Massie is a renowned and respected sales and leasing agent, known as an authority on commercial and industrial properties across the Moreton Bay Region. He has an innate ability to guide his clients, both buyers and sellers, throughout the sales process in commercial real estate. He joined Ray White Commercial after working in the special projects division for a national civil company and has established himself as a dominant presence in the
Moreton Bay Region over the last ten years. His unmatched stock knowledge and ‘boots on the ground’ work ethic sees him consistently ranked in the top 20 Ray White agents in the country.
CHRIS MASSIE SENIOR SALES & LEASING EXECUTIVE 0412 490 840 chris.massie@raywhite.com
RECENT NOTEWORTHY TRANSACTIONS ED
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70-86 Michael Avenue, MORAYFIELD
34-36 Cessna Drive, CABOOLTURE
5&6/18-20 Cessna Drive, CABOOLTURE
• Property size 21,400m2 • IGA Anchored Centre • 26 Specialty retailers • Net income $1,7m PA
• Land size 4,000m2 • Building size 2,100m2 (Tilt panel) • Prominent complex fronting Bribie Island Road • Net rent $252,000pa Yield 7.2%
• 474m2 Warehouse Facility • 400m2 Open Warehouse, 74m2 Office • 2x Electric Container Height Roller Doors • Secure Gated Complex with CCTV • Exclusive Balcony • Signage Opportunity, Bribie Island Road
Sold $22,500,000
E OR
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SOPERTI
Sold $3,500,000
A I LE OPERT
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Leased $51.600
PR
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SOPERTI
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10/30-36 Dickson Road, MORAYFIELD
1,2,3/60-78 King Street, CABOOLTURE
17 Hasking Street, CABOOLTURE
• 205m2 warehouse
• 243m2 office/retail space • High foot traffic • Good signage provisions • Air conditioning throughout • Short walk to Caboolture train station • Located within the Caboolture CBD
• Multi-tenanted medical investment • Returning $160,788.12 per annum Net • Modern offices • Ducted air-conditioning • Kitchen and toilet facilities • Allocated parking & signage
• 35m2 of mezzanine office • Large roller door access • Power / lighting / data provisions • Floor coverings • Ample parking + Dual access
Sold $415,000
Leased $128,740
Sold $2,150,000
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 MICHAEL SHADFORTH 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 423 555 043 blake.primrose@raywhite.com
WARWICK PETERS SENIOR BUSINESS BROKER 0412 234 231 warwick.peters@raywhite.com