THE Property Council of Australia’s latest Office Market Report, released today, shows the office vacancy rate on the Sunshine Coast decreased by 2.7 per cent over the last twelve months, dropping to 9.2 per cent.
Queensland Executive Director of the Property Council, Chris Mountford, said a combination of increased demand in 2015 and withdrawal of space from the market has maintained the Sunshine Coast’s significantly lower office vacancy rate than the Gold Coast or Brisbane.
“There was a solid increase in demand for B-Grade office space over 2015, with very little new space added to the market last year,” Mr Mountford said.
“Throughout 2016, however, the vacancy rate is expected to increase with an additional 23,400sqm of space due to come online.”
“While this additional space will increase vacancy overall on the coast, currently the largest contiguous space available in the key markets of Kawana and Maroochydore is 300-400sqm.
“Therefore this additional supply may create an opportunity for larger tenants looking to relocate to the coast or local businesses who need to expand.”
The longer term outlook is less clear for the Sunshine Coast with very little new office space in the pipeline beyond mid-2016, and Council’s vision for a new CBD still several years away.
“As a relatively small market of circa 150,000 square metres, any stock additions or withdrawals have the potential to significantly impact on the overall health of the commercial market,” Mr Mountford said.
“The Property Council’s first event of 2016, being held at The Lakehouse on 26 February, will explore the impact that major projects, such as the CBD, will have on the future of the Sunshine Coast’s various property markets.”
Originally Published On: http://www.sunshinecoastdaily.com.au/
Stockland sells beachfront site on the Sunshine Coast for $8.3m
Queensland builder and developer RGD Group has purchased a beachfront development site on the Sunshine Coast in Queensland from Stockland for $8.3 million.
RGD plans to build a $70 million mixed-use apartment project on the 3977-square-metre site at Lot 905 Bokarina Boulevard, Bokarina Beach. The sale closed with an approval for 63 apartments and about 500sq m of retail space.
The sale is part of Stockland’s long-term strategy to invite external investment into its Oceanside masterplanned community in the area, which includes residential, retail and retirement projects.
Colliers International’s Baydn Dodds brokered the deal.
Brisbane office sale
Brisbane investor Renweed Pty Ltd has bought a 12-storey office building at 26 Wharf Street in the Brisbane CBD for $9.8 million.
It plans to refurbish and re-lease the property as a premium boutique B-grade tower.
Malaysian owner HCK has owned it since 2012 and sold the property to invest outside Australia. It will also be selling its other Brisbane CBD tower, 116 Adelaide Street shortly.
Transaction Property Services’ Marc Stuart represented Renweed while Colliers International’s Sam Biggins and Tony Wang brokered the sale.
Three’s a charm
A private buyer has bought three adjoining warehouses in Melbourne’s west for $2.8 million on a yield of 6.81 per cent.
The individually titled lots at 90, 94 and 98 Proximity Drive, Sunshine West in Melbourne have a total building area of 1907sq m.
They have secure gate access and yards, three-phase power and staff amenities.
CBRE’s Ricardo Cappelletti, Fergus Pragnell, Tom Murphy and Tim Homes negotiated the deal.
Medical centre changes hands
Charter Hall has sold a vacant medical centre in eastern Melbourne for $1.46 million to an owner-occupier.
Sitting on 1418sq m, 529 Mitcham Road, Vermont had an existing fitout for five consultation rooms, ready for immediate occupation as well as a permit for three medical practitioners.
CBRE’s Sandro Peluso, Josh Twelftree and Jimmy Tat finalised the deal.
Candle burns brightly
A local investor has paid $3.9 million for two office buildings at 60 Edmondstone Road, Bowen Hills, just north of the Brisbane CBD.
The 990sq m blocks are a mix of office, boardroom, gym and outdoor terrace spaces. They sit on a 2068sq m site with 35 car park spaces.
The site has a history of candle and soap manufacturing, dating back to the 19th century.
JLL’s Andrew Havig negotiated the deal.
One sip and you’re hooked
Developer Evans Long has sold eight of 20 strata lots at the neighbourhood commercial centre at 8 Fairfax Street, Sippy Downs in Queensland for more than $10 million.
Evans Long made a decision to strata title Central Sippy Downs. made up of three distinct buildings sitting on 7843sq m to target smaller commercial owner-occupiers and investors.
Individual sales of $540,000 to $3.6 million were struck at yields between 6.1 and 6.8 per cent. Evans Long is planning to develop another similar two-storey building on site.
The deal was marketed by Colliers International’s Nick Dowling and Daniel Vella.
Inner city warehouse
Private company Seatech Industrial Pty Ltd has bought a two-storey 450sq m warehouse building in Chippendale in inner city Sydney for $4.8 million at a yield of 3.75 per cent.
The 259sq m site at 18 City Road offers development upside and is suitable for a mixed-use and student accommodation development.
Savills Australia’s Tom Tuxworth, David Hickey and Nick Lower closed the deal.
One of only five Hastings Street retail freehold’s sold for $5.6 million
An interstate investor purchased a Noosa Heads retail institution “Signature on Hastings”, for $5.6 million following an off-market campaign.
Situated at 18A Hastings Street, (pictured in title) the asset was one of only five single use freeholds left on the famous strip.
It comes as a 180 sqm NLA retail investment on a 97 sqm allotment.
The vendor had held the property for over 30 years.
The property produces an annual income of $306,000 p.a. net* + GST.
It was sold by Ray White Commercial Noosa and Sunshine Coast North directors Paul Forrest and Paul Butler.
Mr Forrest said, “Hastings Street is highly sought-after by wealthy investors and remains very tightly held, with freehold properties particularly desired.”
“The buyer already owns several assets on the strip, so they were one of a few parties we approached.”
“We’re delighted that following the success of our off-market campaign and long history of successful sales, we’ve been appointed as exclusive agents for the sale of ‘Peter Alexander’ at 28 Hastings Street (pictured below),” he added.
Mr Butler said Signature on Hastings was a Noosa institution and was a unique concept store that was well-known by locals and tourists alike.
“The shop opened its doors on Noosa’s now-famous Hastings Street shopping strip in 1990 and it’s genuinely adored by everyone,” he said.
“The creation of interior designer Gail Hinkley, it started as a small women’s clothing and gift store, and has now grown into a well-established name in the homeware industry.”
“Hastings Street is Queensland’s premier tourist destination and retail street. It vastly out-strips the Gold Coast, Port Douglas and Mooloolaba Esplanade,” Mr Butler concluded.
FIRST COMMERCIAL BUILDING APPROVED FOR MAROOCHYDORE’S NEW CBD
The first commercial development approved for the Sunshine Coast’s new cutting-edge central business district is a sign of the region’s “coming of age”, the project’s developer says.
The $30 million Foundation Place is set to become the first building in SunCentral’s Maroochydore city centre, with construction expected to start in June following strong interest from businesses looking to get a foothold in the building.
The eight-level, energy-efficient office complex features more than 5000 square metres of space, incorporating ground-floor retail, five levels of commercial and office space as well as car parking across two podium levels.
It will also become the home of its developer, Sunshine Coast’s Evans Long, with the project only needing pre-commitments of about 20 to 25 per cent to proceed.
“We’ve got enough enquiry to build it more than twice. We’re comfortable with the amount of enquiry that we have at this point,” Evans Long director Dirk Long said.
Transact Property Group associate director Daniel Cullinane said rental and sales enquiry in the first week of project launch had been strong, especially from big and small local businesses looking to stake their claim in the new CBD.
“We’ve been inundated with enquiry over the last week from 100 square metres to full floors – it’s just been crazy,” he said.
An artist’s impression of how the Maroochydore CBD will look.
“They just see the potential of the CBD and that’s the biggest draw card. From the initial enquiry, there is a really diverse range of people who are coming through.
“You’ve got people who are household names and you’ve got people that you have never heard of, but they are all those entrepreneurial, visionary-type of businesses.”
Office rents range from $380 to $400 per square metre net, with ground floor retail rents priced between $750 to $800 per square metre. Sale prices are about $5450 per square metre.
Businesses can buy or lease a full floor of the building or as little as 80 square metres of office space with retail zones also available for sale or lease.
Foundation Place will be the first private building on the Sunshine Coast to have a Five-Star NABERS rating.
However, as well as a plethora of sustainable features and a design that makes the most of the coast’s sub-tropical climate, the building also heralds the start of something much bigger for the entire region, Mr Long said.
He said population growth, a significant infrastructure program, and a commercially-minded local council meant that the coast was about to economically come into its own, which had positive ramifications for generations of its residents.
“The wave always follows that. You’ve got to be there, and you’ve got to be ready, because once the wave comes through it’s too late to try put your foot on blocks of land and create a development business because you can’t start one from scratch,” Mr Long said.
“It’s a coming of age for the Sunshine Coast and with that comes the detractors but with that comes the positivity as well.
“We’ve kept our identity, we’re going to have a population that gives us our own economies of scale so there is depth in the market, and there is a future for us and for future generations.”
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