RAY WHITE COMMERCIAL NORTH COAST CENTRAL
WELCOME
CHRIS MASSIE DIRECTOR 0412 490 840
NORTH LAKES
Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in North Lakes 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 NORTH LAKES NORTH LAKES North Lakes continues to set the benchmark for commercial sale and lease rates across the region and has topped the list of population growth hot spots in Queensland, according to a new report by Matusik Property Insights. Along with North Lakes, the adjoining suburbs of Dakabin & Kallangur also made the list of Top 5 fastest growing suburbs. North Lakes and the surrounding Moreton Bay region already benefits from a strong regional economy valued at nearly $13 billion in 2016. And with average annual household incomes already roughly 12 per cent higher than that of greater Brisbane, the spending power of local residents is only set to further benefit new retailers, commercial businesses and hospitality operators relocating to North Lakes.
Significant investment in infrastructure in North Lakes and surrounding areas, along with affordability issues in inner-Brisbane has been the main catalyst for the growth and subsequent success of the commercial ventures. However, there is an additional benefit experienced by businesses operating in what has been awarded Australia’s No.1 master planned community. The “North Lakes Effect” is the expression used by some to describe the reluctance of residents to leave their immediate area, instead choosing to live, work and shop within the borders of the estate. This may be attributed to the higher than average ‘ex-pat’ community or the congestion issues in nearby suburbs. In either case, the result is positive for local operators catering to this catchment.
VACAN CI ES I N DU S T R I AL
THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL
The higher average rents result in few general industry businesses calling North Lakes home, but as the business park land vacancies near capacity, we can expect tenancy competition to increase for functional retail and serviceindustry properties. Improved remote working capacity and inner-city congestion will continue to make these fringe precincts viable alternatives for major office requirements in the near future.
AV ERAGE NET RENT IND US T RIA L
SIZE
LAST QUARTER
THIS QUARTER
SIZE
LAST QUARTER
THIS QUARTER
>200sqm
NIL
13
>200sqm
NIL
193
200-500sqm
NIL
7
200-500sqm
NIL
182
500sqm+
NIL
4
500sqm+
NIL
216
TOTAL
NIL
24
TOTAL
NIL
197
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
1A/27 Discovery Drive
NORTH LAKES
50 sqm
$26,760
Ray White NCC
6/37 Flinders Parade
NORTH LAKES
108 sqm
$21,600
Ray White NCC
101 Flinders Parade
NORTH LAKES
988 sqm
$227,240
Ray White NCC
8A/4-6 Burke Cres
NORTH LAKES
335 sqm
$95,484
Ray White NCC
4/9 Flinders Parade
NORTH LAKES
245 sqm
$50,000
Ray White NCC
1/75 Flinders Parade (SALE)
NORTH LAKES
310 sqm
$725,000
BUILDING AREA
LEASE PRICE
LEASED AGENCY
ADDRESS
Ray White NCC
6/4-6 Burke Crescent
NORTH LAKES
150 sqm
$80,000
Ray White NCC
5/63 Flinders Parade
NORTH LAKES
258 sqm
$65,000
Ray White NCC
2F/2-4 Flinders Parade
NORTH LAKES
147 sqm
$19,000
Ray White NCC
1 /4-6 Burke Crescent
NORTH LAKES
486 sqm
$127,410
Ray White NCC
4/29 Flinders Parade
NORTH LAKES
302 sqm
$31,710
WELCO M E TO T HE NEI G H B O U R H O OD
CITY
CASE STUDY ACTIVE TARGETING WORKS The flood of stock coming on the market in North Lakes created a glut of supply over the last two years. In response to the obvious need for pro-active marketing, we developed an Active Targeting process designed to identify businesses most likely to suit a specific property and engage with them, rather than passively waiting for a phone call. The result has been a string of lease deals that pair up complementary businesses into mutually beneficial tenancy clusters. Examples include a supplement store next to a gym, a BBQ smoke house next to a brewery, a café next to a car wash and a music store next to a school supplies retailer. North Lakes residents love to shop local and by providing complementary clusters of businesses in convenient locations, we have helped create positive outcomes for owners, businesses and consumers.
FAST FACTS •P roperty type Commercial leasing • Address - 4 Burke Crescent - 9 Flinders Parade - 63 Flinders Parade • Tenants Secured - Totally Workwear - Nutrition Warehouse - Black Tan Coffee - Crocs - Ellaways Music - Spa World - Pet World - Moreton Theatre Company - Fresh Hot Smoked - Total Tools • Average Marketing Spend $1,500 • Sale date 08 Aug 2018 • Agent s Chris Massie 0412 490 840 Aaron Canavan 0447 744 948 Blake Primrose 0423 555 043 • Agent comments “This is by far the best way for owners to cut through the clutter of listings and truly stand out to potential tenants”.
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
! LD TIES N O S ER E OR
M
D EE
OP
PR
T AC DED R E T E
ED
! LD TIES N O S ER
D EE
E OR
M
N N COERTIES R E OP
D R UN ORE P
OP
PR
M
17 Hasking Street, CABOOLTURE
4/299 Morayfield Road, MORAYFIELD
179 Oakey Flat Road, MORAYFIELD
• Multi-tenanted medical investment • Returning $160,788.12 per annum Net • Modern offices • Ducted air-conditioning • Kitchen and toilet facilities • Allocated parking & signage
• 200m2 (approx) warehouse • 150m2 of exclusive use yard • 3yr lease ending 2020 to Cross Fit gym • Returning $21,331.80 per annum Net • Tenant pays 100% of outgoings
• 1ha clear, level corner block • Large existing residence • Development Approval for 160 place child care plus additional after-school care • Significant planning works completed & available to purchaser
SOLD $2,150,000
! LD TIES N O S ER
SOLD $305,000
ED
! LD TIES N O S ER
D EE
E OR
M
T AC DED R E T E
ED
D EE
OP
PR
Under Contract
E OR
M
OP
PR
N N COERTIES R E OP
D R UN ORE P M
23-25 Kabi Circuit, DECEPTION BAY
8/6-12 Dickson Road, MORAYFIELD
2/75 Flinders Parade, NORTH LAKES
• 2701m2 hardstand/ development site • Suited to large vehicles/ storage yard • Located in Baylink Industrial Estate • Easy access to Gateway Arterial Motorway and Bruce Highway • 2 minutes* to North Lakes
• 212m2 industrial unit with office space • Leased until June 2019 • Excellent on-site car parking • nternal toilets • Container height roller doors • 3 phase power
• 154m2 comprising of 105m2 on the ground floor + 49m2 mezzanine • Architecturally designed office/warehouse units • Container height roller doors • On site car parking
SOLD $680,000
SOLD $452,000
Under Contract
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 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