JANUARY 202 5
This month in Portfolio
We are proud to kick off 2025 with our January edition of Portfolio magazine.
Despite some of the challenges faced by the commercial property market last year, 2024 was a phenomenal year for RWC, and I want to thank you all for your continued support over the last 12 months. We’re excited to see what 2025 has to offer, and we look forward to working with you all in the coming months.
In this month’s edition of Portfolio we feature a selection of our most noteworthy deals of 2024, as well as some fresh stock that has just launched to market.
We will also hear from Ray White head of research Vanessa Rader who shares her predictions for some of the top commercial property trends the market will see in 2025.
In December we held our biannual RWC Auction Showcase which saw more than 80 properties scheduled to go under the hammer across the country. We share a wrap up of the auction showcase and some of the top results.
While many commercial agents slow down during January, many of our offices are fullsteam ahead with transactions. Keep an eye out for our RWC Gold Coast auction event on Monday 27 January, with a huge selection of premium stock going under the hammer.
James Linacre Head of Commercial RWC Australia and New Zealand
Quick jump to a region
Key commercial property trends shaping 2025
VANESSA RADER
Ray White Head of Research
The Australian commercial property landscape is poised for significant transformation in 2025, with several key trends emerging from recent market dynamics.
1. RETAIL REVIVAL AND LUXURY EXPANSION:
The retail sector is experiencing an unexpected resurgence, particularly in prime locations. CBD retail cores are showing remarkable resilience, with luxury retail expanding beyond traditional strongholds. Sydney’s emergence as a luxury retail hub, with 25 per cent of its shops representing high-end brands, signals a broader trend likely to continue through 2025. This shift challenges previous predictions about brickand-mortar retail’s decline, with neighbourhood and sub-regional centres demonstrating particular strength when anchored by the right tenant mix. Centres that successfully blend conveniencebased retail, essential services, and entertainment offerings are outperforming, as consumers seek experiences alongside traditional shopping, particularly in food and beverage precincts
2. INDUSTRIAL SECTOR EVOLUTION:
The industrial sector shows increasing market bifurcation heading into 2025. While headline vacancies remain low at sub 2 per cent, growing incentives and stabilising rents signal a cooling in traditional warehousing. However, specialised assets continue to outperform - cold storage facilities maintain tight yields, self-storage benefits from housing trends with close to full occupancy, and data centres attract premium investment. Owner-occupier demand remains resilient in the sub-$20 million range. This split suggests warehousing may face effective rent pressures while specialised industrial assets maintain their strong performance, potentially marking a key inflection point in the market cycle.
3. OFFICE MARKET TRANSFORMATION:
The office sector is undergoing a structural shift, with major CBD vacancies ranging from 9.5 per cent to 18 per cent. Rather than viewing this as purely negative, 2025 may see innovative repurposing of office spaces, particularly in secondary markets. This “premium property pivot” trend continues, with premium
and A-grade properties attracting tenants through enhanced amenities and sustainability features. ESG considerations are increasingly driving occupier decisions, with buildings offering strong environmental credentials, smart building technology, and clear pathways to net zero garnering stronger tenant interest and potentially commanding rental premiums. However, as the gap between premium and secondary rents widens, affordability concerns may drive some tenants to reassess their space requirements, potentially benefiting well-located secondary assets that can offer competitive rents while still meeting basic sustainability standards.
4. ALTERNATIVE ASSETS MAINSTREAMING:
Previously considered “alternative” investments such as childcare centres, medical facilities, fast food and service stations are becoming mainstream commercial assets. With occupancy rates currently showcasing results ahead of many traditional alternatives, yields are now becoming more comparable to traditional asset types and growing in attractiveness to institutional investors.
to traditional asset types and growing in attractiveness to institutional investors.
5. REGIONAL MARKET RECALIBRATION:
Investment in regional commercial property is experiencing a significant shift. After peaking at $16.41 billion in 2021, regional markets are finding a new equilibrium. Queensland continues to lead regional investment, accounting for over 40 per cent of total turnover. Strong interstate migration, particularly to Queensland’s coastal markets, coupled with the hybrid work arrangements, continues to reshape regional demand fundamentals. Markets demonstrating strong population growth and economic
diversification potential are likely to see sustained investor interest through 2025.
6. HOSPITALITY AND TOURISM ASSETS REGAIN
GROUND:
The pub and hospitality sector demonstrates resilience heading into 2025, following recordbreaking 2022 performance ($4.6 billion in sales). After 18 months of subdued activity, transaction momentum is rebuilding, with Q3 2024 volumes exceeding longterm quarterly averages. These assets attract investors through diverse revenue streams across food and beverage, gaming, accommodation, and retail. Limited new supply and prime locations maintain their appeal, particularly among institutional investors seeking multi-revenue
assets. Value-add opportunities through airspace rights activation and accommodation upgrades offer additional upside potential.
Looking ahead to 2025, the commercial property market appears to be entering a period of strategic repositioning. While challenges remain, particularly around interest rates and yield spreads, opportunities exist for investors who can identify assets with strong fundamentals and clear value-add potential. The market increasingly favours quality assets with robust income streams, suggesting a more considered approach to commercial property investment will be required in 2025.
Maximising tenant retention in a competitive market
LETEICHA WILSON RWC Property Management Specialist
Tenant retention has always been a key factor in maintaining a profitable commercial property portfolio, but as we step into 2025, it’s more critical than ever. With increasing competition, rising costs, and shifting tenant expectations, landlords must prioritise retention strategies to avoid the high costs and downtime associated with tenant turnover. Here are some effective approaches to retaining tenants and fostering long-term relationships.
PROACTIVE MAINTENANCE
One of the quickest ways to lose a tenant is through neglected property upkeep. Proactive maintenance demonstrates your commitment to providing a quality space that supports their business needs. Regular inspections, prompt repairs, and preventative measures not only enhance the tenant experience but also protect your investment. Partnering with a skilled property manager ensures maintenance issues are addressed efficiently, reducing tenant frustration.
CLEAR AND CONSISTENT COMMUNICATION
A strong landlord-tenant relationship begins with open and transparent communication. Regular check-ins allow landlords to address tenant concerns early, build trust, and understand their evolving business needs. Simple gestures, like updating tenants on building improvements or sending reminders about lease terms, can make a significant difference.
OFFERING VALUE ADDED BENEFITS
In a competitive market, tenants are more likely to stay if they feel valued. Offering benefits such as collaborative marketing opportunities, energyefficient upgrades that reduce operational costs,
or improved amenities tailored to tenant needs can make a significant impact. These strategies show tenants that you are invested in their success and wellbeing.
CREATING A POSITIVE TENANT EXPERIENCE
Going beyond the basics of maintenance and communication, consider what extra value you can provide. This could include offering shared amenities, investing in sustainability initiatives, or implementing technology solutions like tenant portals for easy access to information. A property manager with a tenant-centric mindset can play a pivotal role in delivering an outstanding experience.
Retaining tenants often requires a combination of attentiveness, expertise, and operational efficiency. A skilled property manager brings all these elements together, ensuring the landlordtenant relationship is nurtured while protecting the property’s financial performance.
In 2025, prioritising tenant retention isn’t just good practice—it’s essential. By addressing tenants’ needs proactively and maintaining a strong focus on service, landlords can create a stable, profitable property portfolio that thrives even in a competitive market.
RWC’s top settled sales of 2024
Sale price: $80 million
Sale
RWC Western Sydney
Sold November 2023, settled 2024
The property was a large DA approved residential development site in Western Sydney. It is development approved for 1381 units across 17 buildings, and is located moments from Schofields station and shopping amenities as well as Rouse Hill Town Centre. The property was bought by a Sydney-based developer, who has plans to build out the approved apartments, further contributing to the area’s housing supply and meeting the needs of a growing population.
by Peter Vines and Victor Sheu
944-1024
RIPLEY ROAD, SOUTH RIPLEY
Sale price: Circa $68 million
Sale by Mark Creevey, Tony Williams, and Mathew Fritzsche
Ray White Special Projects
Sold 2022, settled May 2024
Sold for the first time in 50 years, the 77.1554ha property was sold as a large-scale residential development site located in the heart of the Ripley Valley PDA, one of the largest urban growth areas in Australia, just 35km from Brisbane CBD.
1-3 TWEED COAST ROAD, HASTINGS POINT
Sale price: More than $50 million
Sale by Ryan Langham and Nathan Huxham
RWC Burleigh Group
Sold December 2023, settled 2024
The North Star Holiday Resort in Hastings Point was sold, breaking the sales record for the caravan and holiday park industry. While the agents cannot reveal the exact sale price, the property was sold to Tasman Holiday Parks and broke the record previously achieved by the Cairns Coconut Resort in 2017, which sold for $50 million.
RWC sells $60M in property during end of year auction showcase
80 properties were scheduled to go under the hammer during RWC’s end of year auction showcase, with a preliminary clearance rate of 68.4 per cent.
The auction showcase saw more than $60 million in property sold.
There was plenty of buyer activity, with an average 5.0 registered bidders and 3.5 active bidders per auction.
The top result from the showcase went to RWC WA agents Brett Wilkins, Chris Matthews and Liam Pittaway who sold 25 Felspar Street, Welshpool, under the hammer for $8.6 million, with nine registered bidders and three active bidders.
RWC Gold Coast agent Jackson Rameau saw the auction with the highest number of registered bidders, with a whopping 14 registered bidders and nine active bidders at his 2/94 Spencer Road, Carrara, auction which sold under the hammer for $1.16 million.
RWC head James Linacre said the end of year auction showcase had been an incredible success.
“The success of the showcase is further proof that the Ray White Group are competition creators,” Mr Linacre said.
“A clearance rate of 67.6 per cent is a testament to the hard work and expertise of our RWC network across the country.”
“Auction continues to be our preferred method of sale, providing transparency for both our buyers and sellers, and ensuring our vendors get the best possible price the market has to offer for their assets.”
Assets under management
RWC manages properties across all asset classes right across Australia. Take a look at some of our top managements from across the nation. RWC will have a management specialist located right near your property, so enquire with us today.
CONTACT HERE
RWC BAYSIDE
CAPALABA, QLD
A modern 1,384sqm* freestanding concrete tilt slab building on a 2,122sqm* Low Impact Industry site, featuring three tenancies with self-contained amenities, mezzanine offices, and dual driveway access.
RWC NORTHERN CORRIDOR GROUP
CLAYFIELD, QLD
Fully tenanted and highly profitable retail shopping centre located on a busy intersection in a great suburb of Brisbane with reported traffic of over 56 million cars per year
RWC WA
JURIEN BAY, WA
Jurien Bay Shopping Centre is anchored by an IGA supermarket and BWS and serves both the local community and the growing number of tourists who visit Jurien Bay year-round.
RWC QLD ASSET MANAGEMENT
ASHGROVE, QLD
Just 4km from the Brisbane CBD, the centre is located in Ashgrove, a suburban hub that services a catchment far beyond its immediate locale. This modern 323sqm1 centre is fully leased to four highly complementary tenants, providing an unrivaled tenancy mix.
QLD
Ultimate Investment Ticking
Directly opposite $1.3 billion* Meriton development
Under construction (1,057* Units)
Outstanding exposure (circa 45,000* passing cars daily)
Retail Strata - 83m2* (1 exclusive parking bay on Title)
$60,000pa* net annual income
Newly tenanted on a 5 x 5 year term
Must be sold on or before Auction
Songbirds Rainforest Retreat
Purchase your own piece of paradise
50* acres of pristine emerald rainforest Absolutely must be sold DA approval for 12 additional villas
Don't
930 Tamborine-Oxenford Road, Wongawallan, 4210
Bamboo Down Under Prime Freehold Investment
Triple net lease with options through to 2048
Net income $314,700* + GST + Outs
Expansive 4.12ha* property over two titles
Two separate residential residences
98m* street frontage to Tamborine-Oxenford Road
Quality infrastructure - recent million dollar upgrade
22 year tenancy to Australia's leading bamboo supplier
22/25-31 Grafton, Cairns City, 4870
Professional Office Cairns
CBD - Invest or Occupy
RWC Cairns presents an excellent investment opportunity to purchase a professional office unit at 22/25-31 Grafton Street, Cairns City. This recently refurbished office features Italian porcelain tiles and is ideally situated in the heart of Cairns CBD.
Positioned on Grafton Street, between the Cairns Courthouse on Sheridan Street and the Cairns Corporate Tower on Lake Street, this property boasts a prime location within walking distance of numerous cafes and eateries.
•Area - 51 sqm
•Open plan reception / waiting with split system air conditioning
•1 x Office - 14.3 sqm with air conditioner
•Low-body corporate rates
•Zoned - Principal Centre
Lot 01/189 Margaret Street, Toowoomba City, 4350
Sale Price on Application
Building Area: 102 square metres*
Exceptional retail space located in Toowoomba CBD
This exceptional tenanted retail space located in the heart of Toowoomba boasts a generous floor area of 102sqm* and is ideally suited for an entry-level investor.
Tenanted until July 2027 to an internationally branded pizzeria - this property is certainly one not to miss.
•Toowoomba CBD centric
•Significant exposure to Margaret Street
•Ample natural light
•Rental Income per year of $57,088.00*
•Tenant on a 5 year + 5 year lease, expiring 2027
•Great signage opportunities
•Close proximity to clubs, pubs and other retail outlets
•Inspection on appointment
Paul Schmidt-Lee 0499 781 455
paul.schmidt-lee@raywhite.com
RWC Toowoomba
raywhitecommercial.com
Successful marketing of modern industrial units in Cleveland location
RWC Bayside proudly marketed 28 modern strata-titled industrial units within the brand new ‘Cleveland Metro’ development. Ideally situated near Cleveland CBD, Raby Bay Harbour, and major bus, train, and road networks, these architecturally designed spaces appealed to a wide range of business operators, savvy investors, and buyers seeking additional storage.
A tailored and innovative marketing campaign generated strong interest, drawing attention from both local and interstate buyers. The development was completed in August 2024, with titles issued in October and settlements commencing in November.
Nathan Moore 0413 879 428 nathan.moore@raywhite.com 49
RWC Bayside
Redlands Business Park, Redland Bay, 4165
Redlands Business Park has seen explosive growth in 2024. With all land officially 'sold out' and much of the last round of development projects under way, this hub for business at the southern end of Redland City is now an absolute hive of activity.
In the last 12 months, RWC Bayside has proudly marketed and sold 84 allotments and overseen the development of 34 industrial units in this masterplanned estate, providing a great opportunity for businesses to grow in support of the ever-increasing residential population through this corridor.
Nathan Moore 0413 879 428 nathan.moore@raywhite.com
250sqm of premium space, general industry-zoned 16
Make-good completed, ready to occupy by 2025
Convenient access to Beaudesert Rd, Ipswich Hwy, M1
Unaffected by floods, ensuring peace of mind
shell" layout ready for immediate use
Ample parking and artisan barista coffee on-site
Grant Turner 0457 766 812 grant.turner@raywhite.com
Cherie Remar 0434 477 710 cherie.remar@raywhite.com
2 Pannikin Street, Springwood, 4127
Grant Turner 0457 766 812 grant.turner@raywhite.com
Julie Ryan 0447 445 453 julie.ryan@raywhite.com
First time available in almost 20 years
Tenant on a month to month lease
Shop 8/18 Hastings Street, Noosa Heads, 4567 Exposure to Hastings Street and Bay Village complex
Current rent $61,800 per annum + outgoings + GST Fully fitted out for food production and sales Sale
+ GST (if applicable) Access to Bay Village car park for one car
John Petralia 0414 812 719 john.petralia@raywhite.com
David Brinkley 0448 594 361 david.brinkley@raywhite.com
RWC Noosa & Sunshine Coast David Brinkley 0448 594 361 david.brinkley@raywhite.com Rachel Cadamy 0455 902 627 rachel.cadamy@raywhite.com
Tidy Unit in Great Location
Unlock the potential of your business with this exceptional industrial/warehouse property located in the heart of Acacia Ridge.
Spanning an impressive 540sqm, this versatile space is perfect for a variety of industrial applications, offering both functionality and convenience.
Key Features:
• 540m2 of office/warehouse area
• Excellent access to major arterial roads
• One of only three in the complex
• Being sold Vacant Possession
• *All items approximate
Luke Wray 0402 042 171 luke.wray@raywhite.com
2/139-143 Barbaralla Drive, Springwood, 4127
Quality ground floor office
space
•Total area - 528m2
• Ground floor
• Open plan tenancy
• Ducted air-conditioned throughout
• Fibre optic internet connection
• Brand new security system
• Large street frontage
• Disabled access
• Signage opportunity
• 19 Undercover allocated parking bays
• 6 Outside allocated car parks
• Street and additional visitor parking
• Within walking distance to Chatswood Central Shopping Centre
• Easy access to public transport
• Only minutes to Pacific Highway on/off ramps
Lease Contact Agent
Aldo Bevacqua 0412 784 977 aldo.bevacqua@rwcs.com.au
RWC Springwood
raywhitecommercial.com
3111&3112/2994-2996 Logan Road, Underwood, 4119
A Grade office space
• Ground floor office 348m 2
• Grand reception area
• Large corporate boardroom/training room
• Several executive offices
• Multiple open plan work areas
• Disabled bathrooms and shower facilities
• Access to multiple male and female amenities
• Large kitchen
• Ducted air-conditioning throughout
• 6 Basement car parks
• 6 Additional street level car parks
• On-site cafe
• Just minutes from major arterial roads
• Walking distance to bus terminal and two popular shopping centres
Sale Contact Agent
RWC Springwood
Aldo Bevacqua 0412 784 977 aldo.bevacqua@rwcs.com.au Zane Bevacqua 0400 270 666 zane.bevacqua@rwcs.com.au
NSW | ACT
70ha* of pastures and improved land
Main colonial homestead with 10 ensuite bedrooms
5 separate accommodation houses with amenities
Wedding reception hall/ conference facilities
Swimming pool and tennis court
Potential for renovation, development and subdivision^
Existing use rights as a tourist operation/farm stay
SC
Suite 702, 1 Castlereagh Street, Sydney, 2000
New spec fit out with 12 desks
1 Castlereagh Street commands a proud position on the corner of Hunter and Castlereagh Streets at the footssteps of surrounding premium office towers. The NE aspect gives as floors excellent solar access. The lobby has undergone a recent refurbishment providing a minimalist classy entrance. There is basement has parking, and end of trip facilities with showers, lockers and bicycle racks. The new Martin Place Metro Station is located directly opposite the building entrance.
•Brand new fit out
•Features waiting area, 12 pax boardroom
•6 pax meeting room, 2 quiet rooms, collaboration area
•24 open plan workstations and kitchen breakout area
•Fantastic light and outlook, vacant now for direct lease
2-14 Elsie Street, Burwood, 2134
As new Strata commercial offices
Discover a versatile selection of strata office suites, available for sale, ranging from 60 to 860 sqm to suit businesses of all sizes.
Ideal for businesses seeking a lively community and modern amenities, Elsie Suites is perfect for hosting clients, events, or establishing your second home. Experience the convenience and vitality of working in one of the most sought after locations in the Inner West.
Elsie Suites, with DA approval and a builder appointed, is on track for completion by July 2025.
WA
VIC | TAS
