Ray White Commercial Robina July 2022 Update

Gold Coast

COMMERCIAL UPDATE

BY RAY WHITE COMMERCIAL ROBINA July 2022 Edition

SCOTT B

Chief Execu

An article released by Smart Property Investmen investing in Commercial property. Their four simp

1. Investment d

Commercial properties have characteristics and be properties in many aspects, making it the perfect c The right mix of residential and commercial properties could help portfolios a When combined into a diversified property portfolio, these differen

2. Strong inco

For most investors, getting strong income re One of the benefits of owning commercial proper residential property — in many cas These more substantial leases provide more certainty of incom Currently commercial yields are ranging between 4 location. On the other hand, CoreLogic says gross yields on residential hous

3. Benefits your

If you own a small business, purchasing a comm Investing in your business premises offers the secur She stated that with interest rates at historical lows, there is an observed incr

4. Lower ong

Being a commercial landlord is more cost-efficient The landlord bears many ongoing costs in a reside Managing these expenses can be a nuisa Typically it is more common for the tenant to shoulder the major This means more of the rent hits the landlord’s po landlord to reinvest funds to keep the shop, in

BURGESS

utive Officer

nt magazine this month discussed the benefits of ple commercial investment tips are listed below.

diversification

ehaviour that are largely different from residential choice if you’re looking to diversify your portfolio. adapt to the shifting needs of investors throughout their investment journey. nces can also support the evolving needs of sophisticated investors.

ome returns

eturns on their investment is a top priority. rty is that leases usually run for much longer than ses, three to five years and longer. me and generally higher yields than many other asset classes 4 to 7 per cent depending on the property type and sing nationally are 3.2 per cent for houses and 3.9 per cent for apartments.

r small business

mercial property can also offer significant value. rity of tenure plus a chance to control leasing costs. rease in the proportion of owner-occupiers in commercial property markets.

going costs

compared with overseeing a residential property. ential tenancy, including repairs and maintenance. ance, lowering the landlord’s net yields. rity of the property’s regular expenses in the commercial market. ocket. Better still, the extra cash flow allows the ndustrial unit, or office in good working order.

WHAT IS ESG AND HOW DOES IT EFFECT PROPERTY MARKET ESG is an acronym which has been bandied about Commercial property for many years, however it’s not totally understood what it is and how it impacts property. Environmental Social Governance is the response to a new era of socially conscious investors who consider not just financial returns but environmental impacts today and into the future. In Australia NABERS is the leading rating scheme which considers energy, water and other social implications. With the Government growing its commitment to zero net carbon emissions by 2050 we are seeing a growing pool of owners, tenants, investors all ensuring their assets are future ready and we are starting to see some creep into the residential sector.

CommBank recently announced their Green Home Loan offering which provides discounted rates to those who purchase a Green Building Council of Australia (GBCA) green star home or have appropriate NaTHERS ratings across energy and water criteria. While this may be skewed to newly developed products, demand is high for stock to be built keeping these principles in mind as our consumer grows more environmentally conscious. With many other banks likely to follow suit there are a number of greening initiatives which will further encourage homeowners to consider upgrades to their home to improve livability, comfort and health while offsetting growing energy costs.

Australian Commercial property is world leading in its implementation and practices around ESG with most property owners having robust mandates around NABERS and their principles when buying or developing new property. This is seen as a pivotal piece to manage future risks while achieving strong returns and meeting sustainability goals. We are also seeing a growing tenant requirement for highly rated assets in response to employee expectations surrounding their employer having an authentic commitment to reducing their carbon footprint.

For Commercial assets it is encouraging to see the results of the GRESB Real Estate Assessment which considers 117,000 assets from 1,520 property owners (REITs, funds, developers) around the world. This survey benchmarks ESG data points including emissions, waste, energy and water consumption with Oceania leading the way for both standing investments and new development.

While Commercial property may be advanced in the areas of ESG, the recently announced The Green Future Index for 2022 saw Australia slide down to 52 (of the 76 countries involved) from 35 last year and labelled a ‘climate lagard’ showing slow or uneven progress towards building a green future. When considering the highly rated countries, we see they have robust strategies surrounding changes to clean energy and reduced emissions; the Australian Government has shown commitment to these initiatives in particular renewable energy resources but greater work needs to be done to swiftly move towards our targets to improve sustainability for Australia.

With homes generating at least one fifth of all greenhouse gas emissions in Australia there is significant opportunity for these ESG principles to move into the residential sector to help achieve these targets and provide residents with more energy and water efficient homes saving on energy costs and future environmental impacts.

SOURCE: Vanessa Radar, Ray White Head of Research

GREEN ENERGY STIMULATES AUSTRALIAN REGIONAL PROPERTY MARKETS As Australia heads towards net zero emissions by 2050 the push towards green energy has advanced many renewable energy projects across the country. Regional Australia has already benefited from this increased demand resulting in strong gains in employment, population growth, and in turn residential rents and prices have seen upward momentum.

For commercial markets this sentiment is echoed, with a growing need for a mix of assets in regions which historically have little supply. An increased workforce grows vibrancy in communities around retail and community assets, growing businesses have taken up much commercial and industrial space as allied services also emerge, while the expansion of existing businesses continues. This increased demand has been instrumental in pressuring rents and values more recently and, as a result, the attractiveness of these locations have grown as investors look to secure quality long term tenanted assets.

While Queensland is set to become a powerhouse for renewable energy sources, towns such as Gladstone have already benefited from the uptick in these renewable energy projects, and will continue to thrive as they transition from fossil fuels to more green industries.

Often known for its coal port and LNG export terminals, Gladstone is now rapidly moving towards long term sustainability. Renewable resources to be the largest hydrogen producer in Australia, supported by the Federal Government’s National Hydrogen Strategy. Growing Gladstone into a ‘hydrogen hub’ will further attract supporting businesses and manufacturing, enhancing demand for both industrial and commercial property. This will be the largest and most influential project for the region generating jobs, demand for property, and steadily improving long term prosperity rather than the boom and bust movements this region has felt in the past.

SOURCE: Vanessa Radar, Ray White Head of Research

There are also a number of renewable energy programs operating and underway in the region, including solar projects, providing power to the local community together with wind farms. Manufacturing, including alumina industrial plants, will earmark Gladstone as the leading aluminum producer in Australia further growing in attractiveness by utilising hydrogen power. Demand for these ‘greener’ products are not limited to Australia, there is a high volume of production already exported across Asia and the Middle East which is expected to further increase.

Another coup for Gladstone is the recent announcement by the Queensland Government of a new $500million, world-class biorefinery. Adding to the biofuels capabilities of the region, the ability to produce fuel via waste and recycled products strengthens plans to create a sustainable, export-oriented industrial biotechnology sector for Queensland, fueling the economic future for the region and contributing to the decarbonisation targets, Strategically Gladstone and its deep water port facilities and well placed to see the long-term benefits of Australia’s commitment to renewable energy resources and our ability to export to a growing audience also committed to reducing their carbon footprint.

This investment into regional Australia will have longterm benefits for the community, creating a long term sustainable job market while being world leading in the quest for zero emissions over the next thirty years. This sort of commitment will ensure a move away from the boom-and-bust economies we have seen in the past and create more stability for both the residential and commercial property markets.

Selling Now Featured Properties This Month

Contact Agent

9 Trickett Street,

Surfers Paradise

An opportunity like no other exists to secure 5 lots, 2,344 sqm of commercial office including a 1 bedroom apartment in the heart of Surfers Paradise, across the road from the beach, on the Gold Coast.

• • • • • • • •

2,344 sqm approx.

Tenanted investment 5 year lease commencing 15th December 2019 Net income $420,065.76 approx.

5 lots on separate titles 6 kitchens 11 car parks 5 meeting rooms

Kelly Zeckovic

0418 790 201 kelly.zeckovic@raywhite.com

Expressions of Interest by 4th August

28 Coomera Grand Drive,

Upper Coomera

First time offered to market, this purpose built master planned Service Station, Car Wash and Convenience Centre is located in the Upper Coomera Commercial and Retail Shopping Precinct within the Gold Coast to Brisbane Growth Corridor. Coomera Grand Service and Convenience Centre is an outstanding easy to manage Investment with a great tenant mix.

• Fully Tenanted Investment • Long Term Leases with Options • Good Tenant Mix with National Brands • Ampol Anchored Service Station • Prominent Corner Location • Additional Development Land • WALE 4.5 Years • Outstanding 9,000m2 site with unbeatable street Exposure

Andrew Stevenson

0438 268 424 andrew.stevenson@raywhite.com

James Stevenson

0498 121 165 james.stevenson@raywhite.com

$529,000

7/328 Scottsdale Drive,

Robina

This sensational opportunity is available now. Ready to go office has a boardroom or training room and executive office, reception, open plan as well as its own kitchenette.

Fantastic Robina location with good public amenity. Why pay rent when you can pay for your own asset? Perfect for an owner occupier or investor if you wish to rent it out.

• • • • • •

84m2* on level 1 Fit out included 2 secure car spaces A grade building with lift and professional neighbours Cafe on site Close to Robina Town Centre, the M1, Varsity Station

*approximately

Kelly Zeckovic

0418 790 201 kelly.zeckovic@raywhite.com

Circa $8mil

2 Springfield Street, • • • •

MacGregor

High-profile corner positioning in the heart of MacGregor DA Approved, 4,116m2* site Massive 109.4m main road frontage Are you ready for the opportunity of the 2032 Brisbane Olympics ?!

Calling all investors who are looking for an exceptional location with retail, food, education, public transport, health, sport and recreation all rolled into one. Offering unbeaten exposure, unrivalled location and surrounded by an abundance of amenities, this centrally located high-profile investment opportunity is not to be missed.

This exciting block comprises of four tenanted adjoining lots (2,140m2; 582m2; 683m2; 711m2), providing you with a stable annual income whilst in preparation of construction.

Alex Wu

0425 117 828 alex.wu@raywhite.com

Bodey Reynoldson

0437 331 003 bodey.reynoldson@raywhite.com

Contact Agent

58 Riverwalk Avenue,

Robina

HQ Building is an impressive commercial and corporate environment within the Gold Coast’s fastest developing commercial hubs in Robina’s CBD. The six level building features premium grade office space plus 2 two basement levels of parking. It set the benchmark for strata office developments in the area.

• • • • • • •

52m² with an immaculate medically suited fit out Includes a spacious reception and consult rooms Recently commenced 2 year lease with a 2 year option to Pro Micro Annual net income of approximately $22,250 2 exclusive use basement car spaces HQ is just opposite the Robina Town Centre Cafe in the buildings foyer

Tony Stone

0409 792 650 tony.stone@raywhite.com

Expressions of Interest

16 Bienvenue Drive,

Currumbin Waters

This property is ideal for the large family as both levels have large open living areas with plenty of outdoor space for entertaining.

Perfect for you and your extended family or any investors would enjoy a quality investment located in a highly sought after area.

• • • • • •

Dual occupancy building with 2 separate living areas 4 bedrooms downstairs 3 bedroom residence upstairs 6 exclusive car parks Ducted air-conditioning Security system

James Stevenson

0498 121 165 james.stevenson@raywhite.com

Andrew Stevenson

0438 268 424 andrew.stevenson@raywhite.com

$1,575,000 excl GST

12-14 Bienvenue Drive, Currumbin

Waters

Located opposite the local shopping centre and only minutes from the M1 this is the last infill site within the area. take advantage of this opportunity to develop on this level double block and if you need more area you can purchase the 2 story residence and office next door.

• Level 1,256m2 infill development site • Multiple development opportunities* • Immediate proximity to shopping, education facilities, open space recreation, community services and the M1 • Capitalise on the last infill development site in Currumbin Waters • Currumbin Waters has seen a compound growth rate of 11.8 for houses and 8.8% for units. (source corelogic)

James Stevenson

0498 121 165 james.stevenson@raywhite.com

Andrew Stevenson

0438 268 424 andrew.stevenson@raywhite.

Expressions of Interest

4/55 Paradise Springs Avenue, Robina Purchase this 4 bedroom townhouse overlooking the Colonial Golf Course and receive significant income from managing the permanent (no holiday or short term) townhouse complex.

Currently the return on investment is a solid 8%* There is an upside on the income if you want to work a bit harder or if your looking to semi retire, then keep active around the resort and spend your spare time on your golf swing.

Located within walking distance to local restaurants, hairdressers, ancillary shopping, and a tavern.

This property is located only a minutes drive from Robina Town Centre with the beaches of Broadbeach and Miami only 15 minutes drive.

James Stevenson

0498 121 165 james.stevenson@raywhite.com

Wayne Holmes

0417 074 989 wayne.holmes@raywhite.com

Leasing Now Featured Properties This Month

Contact Agent

1/2 Waterfront Place,

Robina

• • • • • • •

232m² ground floor suite with quality features and presentation Highly visible streetfront tenancy offering profile and added signage options Includes a reception, boardroom and kitchenette as part of the open plan layout Large windows provide ample natural light throughout the tenancy 7 Allocated car spaces, plus numerous visitor parking options Plumbing infrastructure accessible in the floor for easier drainage or water connections Convenient surrounding amenity includes the Robina Town Centre, Robina Hospital and Cbus Super Stadium • Close to the Robina Train Station and easy access to the M1 • Call anytime to discuss

Tony Stone

0409 792 650 tony.stone@raywhite.com

Contact Agent

1/74 Upton Street, • • • • • • •

Bundall

Total area 838m² Ground floor 491m² + mezzanine 347m² New Build (2019) all modern design features included Off street car Parking with easy trade delivery Air-conditioned throughout both levels Great exposure to Upton Street with excellent signage opportunities Perfect for showroom and retail business

James Stevenson

0498 121 165 james.stevenson@raywhite.com

Prices Start at $155/month (+ GST)

17 Gardenia Grove,

Burleigh Heads

• • • • •

Gated security, with 24 hour monitored camera surveillance Pin number access Short and long term rental available Small storage sheds - holds approx 6m² - From $155 per month excluding GST Large storage sheds - Insulated - 6x2m with mezzanine level 4x2 - holds approx 20m² - from $330 per month excluding GST • Parking spaces available - approx 6x2m - From $175 per month excluding GST • Central location, just off Gold Coast Highway

Natalie McKenzie

07 5593 2088 commercial.robina.qld1@raywhite.com

$3,500pcm + Outgoings + GST

18/328 Scottsdale Drive,

Robina

This professional office is ideally located in the new growth corridor. It is beautifully appointed, fully air conditioned with views. Ready to move straight in and start work.

• • • • • • • •

140m2 fully fitted out into offices and open plan Reception, boardroom and kitchenette Manager’s office plus 2 more offices Modern building in excellent location 4 basement car spaces included Two minutes to Robina Town Centre Close to Varsity Lakes Train Station Main thoroughfare linking Burleigh to Robina

Kelly Zeckovic

0418 790 201 kelly.zeckovic@raywhite.com

Meet the Team Scott Burgess Chief Executive Officer 0413 124 007 scott.burgess@raywhite.com

Tony Stone Sales & Leasing 0409 792 650 tony.stone@raywhite.com

Kelly Zeckovic Sales & Leasing 0418 790 201 kelly.zeckovic@raywhite.com

Donna Keir Asset Manager 0410 486 341 donna.keir@raywhite.com

Grant Burgess Principal 0413 678 076 grant.burgess@raywhite.com

Andrew Stevenson Projects Director 0438 268 424 andrew.stevenson@raywhite.com

Bodey Reynoldson Licensed Real Estate Agent 0437 331 003 bodey.reynoldson@raywhite.com

David Rake General Manager 0402 985 262 david.rake@raywhite.com

James Stevenson Sales & Leasing 0498 121 165 james.stevenson@raywhite.com

Natalie McKenzie Asset Manager 0406 117 538 natalie.mckenzie@raywhite.com

Nadia Silins Danica Roberts Commercial & Projects Administrator Contracts Administrator 07 5593 2088 07 5593 2088 nadia.silins@raywhite.com contracts.robina@raywhite.com

Disclaimer: In preparing this information we have used our best endeavours to ensure the information contained herein is true and accurate, but we accept no responsibility and disclaim all liability in respect to any errors, omissions, inaccuracies, or misstatements that may occur.