Commercial
Commercial
Caloundra City Centre - Retail & Office Space Available
EDITION 3
Office 2 - 40sqm $8800 + Outgoings + GST Office 3 - 54sqm $12,500 + Outgoings + GST Office 9 - 23sqm D EASE $4830 + LOutgoings + GST Office 12 - 35sqm $7,700 + Outgoings + GST Shop 7 - 63sqm $15,865 + Outgoings + GST Office 10b - E39sqm D EAS $8,775 +Loutgoings + GST Office 8 - 100sqm $20,640 + outgoings + GST Shop 14 - 235sqm Contact agent
51-55 Bulcock Street, Caloundra
* approx
Recently Leased/Sold... D D D D E E E E S S S S LEA LEA LEA LEA 2/10 Newing Way, Caloundra West
D E S LEA 2/167 Mark Road, Caloundra West
Caloundra City Centre Office 9 & 10B
Caloundra City Centre Shop 16
D D E E S S LEA LEA 28 Omrah Avenue, Caloundra
46 Bulcock Street, Caloundra
1/63 George Street, Moffat Beach
D SOL Unit 1/11 Exeter Way, Caloundra West
2011 - The year that was The wet start to 2011 and a string of natural disasters wiped out the traditional strong summer trade, a high dollar restrained the domestic holiday market, all this on top of a 2010 subdued by high interest rates resulting in a 2nd year of pain for the Coast's commercial property market. These factors have taken their toll across all sectors of the commercial market. It is hardly surprising many businesses could not hang on. The unfortunate reality is rising vacancy rates in retail strip, industrial shopping centres, showrooms and display yards. The hospitality sectors also did it particularly tough.
Upside - Significant Trends Large companies have again started to invest on the Coast. Bunnings with 2 sites, Woolworths with a Masters Home Improvement store proposed for Noosa. Coles and Woolworths also each acquired supermarket sites in the region and Harvey Norman opens its new superstore at Wises Farm in 2012. With the emergence of value, major investors also reentered the market in Q2 2011. The development of the $2.3b Sunshine Coast Hospital, whilst generally positive for the Coast's economy, may prove to be bitter sweet for some landlords who own office space further afield. Already we are seeing a re-weighting of the office sector with major tenants vying for office space in Birtinya and Kawana Waters smart office precinct. This will impact on the vacancy levels and rent achieved in particular for first floor office space in other office precincts.
Our four residential sales offices have seen significant increases in residential sales turnover in the last few months, the recent reduction in interest rates should ensure this trend continues and release a little spending power which could support the struggling retail sector. Could 2012 see the reemergence of development on the Coast with the associated flown to the bulky goods / showroom and retail sector? Other expert commentators have a more jaded view, believing the retail vacancy rate is increasing, rental levels are declining, property sales volumes are steady but that the Coast is still in the decline phase of the "property cycle" as is the local economy which continues to contract.
What does this mean for landlord and tenant? With few exceptions, whatever view you subscribe to the remedy appears to differ little. The wise landlord will meet the market in Q1 2012 and pitch a rent and incentive package that attracts proven operators, and then claw back their position through a structured rent review mechanism over the term of the lease. The savvy tenant whether staying put, trading from a secondary location or needing more space will use this opportunity to trim overheads and improve their location, setting themselves up for the improving market. Yes, their may be a bit of tension, but if all parties are pragmatic, they should be able to secure a little certainty for the next 3-5 years.
Henzells Commercial PO Box 238, Caloundra Qld 4551 07 5491 2000 | commercial@henzells.com.au
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