RAY WHITE COMMERCIAL NORTH COAST CENTRAL
WELCOME
CHRIS MASSIE DIRECTOR 0412 490 840
REDCLIFFE PENINSULAR
Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in Redcliffe Peninsular 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 THE PENINSULAR REDCLIFFE PENINSULAR There are a few key markets that make up what we consider “The Peninsular”, starting with the Rothwell retail stretch through to the Clontarf industrial and on to the waterfront mixed use areas of Redcliffe CBD, Margate and Woody Point.
increases mean overall tenancy costs are steadily increasing without any of this growth ending up in the owners’ pockets. This is a double dilemma for owners having to hold properties through periods of extended vacancy.
Rothwell continues to suffer from the vacuum left by the transition of many national bulky goods operators into the North Lakes CBD. This has been compounded recently by the refurbishment of the North Lakes shopping centre to create a more ‘destination experience’, as is the trend in retail now. Lower face rents and higher incentives have done little to prompt activity from the minimal enquiry for this precinct.
Closer to the water, the office and retail sectors remain patchy at best. Some new in-fill development has provided some national operators like KFC the opportunity to upgrade their facilities, but these are few and far between. Some green shoots of organic expansion among some local businesses lately gives hope to an upturn promised by the connection of the light rail.
In contrast, the Clontarf industrial market is the stand out performer in the region, with record low vacancy rates among functional properties. Interestingly, average achievable rents have not increased greatly in spite of this fierce competition. Our research indicates that the cost of electricity and general outgoings
THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL
Population growth across the region and improving connectivity for businesses who no longer need an Eagle Street address mean the medium and long term outlook for the Peninsular remains strong. The decision for owners will be do they cash out now or secure holding income and minimise sunk costs for the longer-term benefit.
In terms of new development, we expect this sector close to the water to remain in a holding pattern through the next cycle, when land values may warrant the grouping and demolition of multiple properties in key locations. In the meantime, the trend of refurbishment and renovation by owner occupiers will likely be the only significant movement.
VACAN CI ES I N DU S T R I AL
AV ERAGE NET RENT IND US T RIA L
SIZE
LAST QUARTER
THIS QUARTER
SIZE
LAST QUARTER
THIS QUARTER
>200sqm
NIL
4
>200sqm
NIL
$150
200-500sqm
NIL
5
200-500sqm
NIL
$128
500sqm+
NIL
8
500sqm+
NIL
$100
TOTAL
NIL
17
TOTAL
NIL
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
FOR LEASE
ADDRESS
SUBURB
NLA M2
PRICE
$/SQM
Ray White NCC
Lease
5/26 Huntington Street (SALE)
Clontarf
110
$210,000
$1,909.10
Ray White NCC
Lease
33 Grice Street (LEASE)
Clontarf
825
$94,860
$115
Ray White NCC
Lease
88 Sutton Street (LEASE)
Redcliffe
124
$38,400
$310
Ray White NCC
Lease
8/57 Ashmole Road (LEASE)
Redcliffe
87
$30,450
$350
Ray White NCC
Lease
403 Elizabeth Avenue (lease)
Kippa-Ring
2,035
$284,900
$140
Ray White NCC
Lease
41 Dalton Street (SALE)
Kippa-Ring
742
$880,000
$1,186
PRICE
$/SQM
LEASED AGENCY
FOR LEASE
ADDRESS
SUBURB
NLA M2
Ray White NCC
Lease
279 Oxley Avenue
Margate
75
$32,296
$430
Ray White NCC
Lease
7/27 Redcliffe Gardens Drive
Clontarf
205
$19,440
$95
CASE STUDY CBD STABILITY PROMPTS SALE
FAST FACTS
Another significant asset has changed hands in the Caboolture CBD, this time to an investment syndicate. Chris Massie and Ashley Rees negotiated the sale of 17 Hasking Street following similar sales at 13 Hasking and 9 King Street in recent months to owner occupiers.
•P roperty type Tenanted Office Investment
This fully tenanted freehold investment returning $160,000 per year was sold at a 7.4% return. The key features that attracted the buyer group was the well-established medical tenants and the premium corner location opposite Caboolture’s Council chambers. The agreement was secured within 30 days of listing via a pre-campaign mail out to our investor database, saving the owners money on additional advertising. “A string of recent investment campaigns has given us a solid list of active buyers still looking for the right property.” This sale is further evidence of the growing longer-term appeal of the Caboolture CBD as both investors and owner occupiers position themselves for the coming population growth in the immediate area.
• Address 17 Hasking Street Caboolture • Listed date 1st July 2018 •M arketing Spend $1,400 •S ale price $2,150,000 •Y ield 7.4% •O ffers 1 •S ale date 27th July 2018 • Agent Chris Massie 0412 490 840 Ashley Rees 0411 707 410 • Agent comments “A string of recent investment campaigns has given us a solid list of active buyers still looking for the right property.”
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 ED
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• Multi-tenanted medical investment • Returning $160,788.12 per annum Net • Modern offices • Ducted air-conditioning • Kitchen and toilet facilities • Allocated parking & signage
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18/1-21 Pettigrew Street, CABOOLTURE
• 240m2 Professional Office Suite • First Floor Tenancy • Full Lift Access • Internal Amenities • Reception/Boardroom area • On site car parking
Leased $82,200
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A I LE OPERT
1/59-61 Kabi Circuit, DECEPTION BAY
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• 713m2 of Modern Warehouse/Office • 590m2 Industrial Warehouse & 123m2 Professional Office Space • High Power Supply • 9x Exclusive Car Parks • Container Drop Down Area + Truck Access
SOLD $2,150,000
A I LE OPERT
D
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D EE SE ES N
ED
D NE OL TIES
D
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D EE SE ES N
A I LE OPERT R
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Leased $86,000
A I LE OPERT
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16 King Street, CABOOLTURE
4/1-3 Business Drive, NARANGBA
27/22-26 Cessna Drive, CABOOLTURE
• 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
Leased $38,080
Leased $39,000
Leased $13,200
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