In The Know - Central Sunshine Coast | Ray White Commercial | Northern Corridor Group

NORTHERN CORRIDOR GROUP

1ST QUARTER 2019

IN THE KNOW COMMERCIAL PROPERTY FOCUS C E N T R A L S U N S H I N E C OA S T

MICHAEL SHADFORTH COMMERCIAL SPECIALIST 0488 981 076

EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446

JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331

JULIE RYAN MAJOR ASSET SALES 0447 445 453

SUNSHINE COAST

PINE RIVERS

MORETON BAY

1/172 Brisbane Road Mooloolaba QLD 4557

Level 1, 104 Gympie Road Strathpine, QLD 4500

3/125 Morayfield Road Morayfield QLD 4506

T 1300 255 075 F 1300 778 887

T 1300 255 075 F 1300 778 887

T 1300 255 075 F 1300 778 887

ONE TEAM - THREE LOCATIONS

DIRECTOR’S U P D AT E S

NORTHERN CORRIDOR GROUP

MICHAEL SHADFORTH

CHRIS MASSIE

As a child of the Sunshine Coast and now a father myself, it is the diverse education and employment opportunities available to the younger generation that I believe will have the greatest long-term impact.

The launch of new estates like Aura in Caloundra and Corporate Park East, as well as the continued expansion of Brendale, will provide some relief but we expect demand to continue outstripping supply through 2019.

DIRECTOR UPDATE

Director Sunshine Coast

Director Moreton Bay

ONE TEAM - THREE LOCATIONS

The first quarter of 2019 for the Northern Corridor is set to continue the generally positive trajectory we witnessed across 2018. While housing prices in the southern capitals have taken a hit, many are still capitalising on the price disparity to sell up and move north. This is reflected in our domestic migration numbers that have parts of the Northern Corridor among the fastest growing precincts in the country.

The result is a solid baseline increase across almost all measurable sectors of our market, but it is the intangible benefits that excite me just as much. As a child of the Sunshine Coast and now a father myself, it is the diverse education and employment opportunities available to the younger generation that I believe will have the greatest long-term impact.

Recent infrastructure programs like the Undersea Cable, University Hospital, Sun Central, the international airport and Aura has seen the Sunshine Coast quickly become a serious contender on the global economic stage, and I for one am excited to see where we are headed.

Our expansion into the Brendale and North Brisbane markets through our Pine Rivers office has provided some interesting insights, with the strength of industry across the North Brisbane and Moreton Bay regions being the defining take-away of 2018 for me. On review of our transactions across the region, the lease and sale of industrial buildings accounted for close to 60% of all deals, outperforming office, retail, showrooms and hospitality combined.

The implications for this trend becomes concerning when combined with the analysis of properties actually available across the region. The launch of new estates like Aura in Caloundra and Corporate Park East, as well as the continued expansion of Brendale, will provide some relief but we expect demand to continue outstripping supply through 2019.

Opportunities exist across all sectors this year and we will be closely tracking the trends. At the start of 2018 our team has set ourselves the goal of being the commercial property experts for the Northern Corridor, so much so that we changed our name to reflect this. We are proud of the work done to date to date and promise to continue providing you with the knowledge, resources and support to ensure your next property decision is made from an informed position of strength.

RAY WHITE COMMERCIAL NORTHERN CORRIDOR GROUP ANNUAL SALES & LEASING .

Annual Sales $70,363,885 47 Industrial 19 Retail 10 Office 19 Land 5 Other

Annual Leases $6,298,459

96 TOTAL SALES

67 Industrial 47 Retail 36 Office 3 Land

157 TOTAL LEASED

SPOTLIGHT ON CENTRAL SUNSHINE COAST NORTHERN CORRIDOR GROUP

THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT JORDAN HAYES OF RAY WHITE COMMERCIAL NORTHERN CORRIDOR GROUP

YOUR AREA UPDATE We define Central Sunshine Coast as the traditional industry hubs of Kunda Park and Forest Glen.

There has been little change in the macro elements of the market for this region since our last report, with limited functional stock remaining the main element impacting activity across Kunda Park and Forest Glen. Closer analysis of enquiry levels and transactions have provided us with some interesting observations that property owners in this precinct should find interesting.

Firstly, we have reviewed enquiry sources across the Sunshine Coast and found that the lack of serviced industrial land in the immediate area has businesses looking slightly further afield to accommodate upcoming growth requirements.

This is particularly true for Caloundra’s Aura estate and, to a lesser extent, Coolum, where we see Kunda Park businesses beginning to search. We can expect some shuffling of businesses out of this precinct over the coming year, but pent up demand from within should see any functional properties quickly filled.

The second observation is that 100% of tenanted investments listed in this area have sold. Enquiry levels indicate buyer sentiment remains strong, especially among local buyers familiar with Kunda Park and its position as an industrial hub of the Sunshine Coast. Finance reforms and interest rate adjustments may take some of the steam out of the investor market as a whole later in the year, but there is no other reason why demand for tenanted properties in this precinct from private investors shouldn’t remain strong for those owners looking to sell in the first half of 2019.

5

5 4

LISTED

FOR SALE (JULY - DEC)

4

5

4

SOLD (JULY - DEC)

LISTED

FOR LEASE (JULY - DEC)

>500m2

200-500m2

0-200m2

>500m2

200-500m2

0-200m2

>500m2

0-200m2

>500m2

2

3

200-500m2

3

200-500m2

0-200m2

3

4

5

LEASED (JULY - DEC)

KUNDA PARK ACTIVITY

NORTHERN CORRIDOR GROUP

LISTED FOR LEASE / SALE

Ray White Commercial - Northern Corridor Group RESEARCH TEAM The following is a summary of the key Listed, Leased and Sold properties ADDRESS

SUBURB

BUILDING SIZE 750m2

ADVERTISED SALE PRICE

-

RENT

Lease

93 Enterprise Street

Kunda Park

Lease

2 Mallet Street

Kunda Park

Sale

33 Enterprise Street

Kunda Park

159m2

$350,000

Sale

40 Kerryl Street

Kunda Park

143m2

$375,000

Lease

21 Endeavour Drive

Kunda Park

312m2

Lease

14 Hitech Drive

Kunda Park

456m2

-

Sale

24 Hoopers Road

Kunda Park

295m

$575,000

Lease

4 Robert Street

Kunda Park

200m2

Sale

7 Hitech Drive

Kunda Park

1,312m2

$2,250,000

Sale

10 Avian Street

Kunda Park

240m2

$590,000

Lease

50 Enterprise Street

Kunda Park

927m2

106 Enterprise Street

Kunda Park

155m2

Lease

17 Page Street

Kunda Park

199m

Lease

32 Hoopers Road

Kunda Park

905m2

Lease

3 Hitech Drive

Kunda Park

179m2

-

$110,000

Lease

Sale & Lease

30 Hitech Drive

Kunda Park

381m2

$750,000

$45,000

Sale

56 Enterprise Street

Kunda Park

635m

Auction

$76,223

Lease

27 Enterprise Street

Kunda Park

127m2

-

$15,679

Sale

9 Avian Street

Kunda Park

300m2

$565,000

$30,000

13 25m

2

2

2

2

-

$86,250 $145,000

$34,320 $39,660

$25,000

$18,600 $21,890 $120,000 $17,368

SOLD STATUS

ADDRESS

SUBURB

BUILDING SIZE

PRICE

DATE SOLD

$1,950,000

29/11/2018

Sold

70 Hoopers Road

Kunda Park

722m2

Sold

30 Hitech Drive

Kunda Park

381m

POA

19/11/2018

Sold

10 Avian Street

Kunda Park

240m2

$540,000

23/10/2018

Sold

2 Page Street

Kunda Park

6764m2

Sold

16 Hitech Drive

Kunda Park

Sold

3/4 Avian Street

Sold

56 Enterprise Street

Sold Sold

2

$1,500,000

24/09/2018

465m

2

$885,000

31/08/2018

Kunda Park

98m

2

$210,000

31/08/2018

Kunda Park

635m2

$980,000

20/08/2018

1-3 Kessling Avenue

Kunda Park

84m

2

$2,055,000

13/08/2018

9 Avian Street

Kunda Park

300m

2

$515,000

02/08/2018

PROPERTY MANAGEMENT

NORTHERN CORRIDOR GROUP

Dedicated Service We manage your property like it’s our own...

We constantly look at strategic value-add initiatives to improve your property’s capital value whilst driving your investment and maximising its returns.

Our specialist management team negotiates on your behalf to generate maximum return to you for every lease and tenancy, always focusing on improving your yield.

You can rely on us to manage your administrative processing and reporting as well as protecting and growing your asset at all times.

We manage all repairs and maintenance, establishing and negotiating maintenance contracts to reduce outgoings. We proactively rectify issues before they become problematic and undertake regular reviews, using our group buying power to improve cost efficiencies.

We understand and have thorough working knowledge of commercial property legislation to ensure your legal obligations are managed. We also keep abreast of legislative changes by way of professional development courses. Our aim is to tailor our service to your requirements and investment goals.

Contact our property managment team today: Jason Wright, Commercial Asset - Investor Support Manager 0451 497 368 | jason.wright@raywhite.com Cassie Mahoney, Commercial Asset - Portfolio Manager 1300 25 50 75 | cassie.mahoney@raywhite.com Staci Tobin, Commercial Property Manager - Pine Rivers 07 3889 8000 | staci_tobin@raywhite.com

Retail Shop Leases 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.

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.

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 atleast 7 days prior to signing

• Outgoings must be audited annually for net leases

• Leases must be registered within 3 months of signing by the tenant

Jason Wright, Commercial Asset - Investor Support Manager 0451 497 368 | jason.wright@raywhite.com

AGENT PROFILE

NORTHERN CORRIDOR GROUP

As Managing Director/Commercial Principal, Michael brings more than twenty years of successful sales and innovative marketing experience from a broad range of industries to the team.

His expertise and proven history provides Ray White Commercial Northern Corridor Group clients with the strategic advantage in tailoring investors and tenants to projects so that all parties’ needs are addressed and the project is a success.

He represents the next generation of the well-known and iconic Shadforth family, which has a long history and wealth of experience in development, project management, consulting and contracting throughout Australia.

MICHAEL SHADFORTH COMMERCIAL PRINCIPAL 0488 981 076 michael.shadforth@raywhite.com

RECENT NOTEWORTHY TRANSACTIONS D!

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16 Hitech Drive, KUNDA PARK

14 Page Street, KUNDA PARK

1-3 Kessling Avenue, KUNDA PARK

• 465m2 of GFA on a 1,041m2 site • The Property is strategically located in the established CBD location of Kunda Park situated 4.7kms from the Bruce Highway and 10kms to the Sunshine Coast Airport

• Building: 506m² of GFA • 1,046m2* site • Zone: Medium Impact Industry Zone • Premium location • Tenant in place until 31 May 2020

• Currently tenanted for $145,074.12 p.a.* • Under 10% site coverage • Premium industrial precinct close to Bruce Highway & Sunshine Motorway • 8,305m² / 2.05 acres

Sold $885,000

Sold $875,000

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Sold - Contact Agent

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11/34 Page Street, KUNDA PARK

9/24 Hoopers Road, KUNDA PARK

• 445m2 Ground Floor area • Approx. 205m2 of additional mezzanine • Clean & tidy industrial complex • High clearance roller door • Off-street car parking

• 294m2* warehouse / GF showroom • 30m2* office mezzanine • 6m* high roller door • Toilet & kitchenette facilities • Solar panels installed

Sold $660,000

Sold $560,000

PROPERTIES FOR SALE OR LEASE NORTHERN CORRIDOR GROUP

D SE NEEDE A E S

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R TI FO ROPER

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1/526 Maroochydore Road, KUNDA PARK

5/33 Enterprise Street, KUNDA PARK

• Land Area - Lot 1, 3,424m2 • Building Area - Lot 1, 2,016m2 • Hardstand attached • Cold rooms & freezers • Grease trap connections • Toilet facilities • Ample onsite car parking • High exposure to Maroochydore Road

• 159m2 ground floor, open plan warehouse • 25m2 air-conditioned office/mezzanine • High clearance roller door & personal access door • 3 exclusive car parks • Low outgoings (body corporate, rates & water) • Internal amenities • Located in the heart of Kunda Park, just off Maroochydore Road with easy access to Sunshine Motorway & Bruce Highway

For Lease - Contact Agents Emily Pendleton & Michael Shadforth

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For Sale - $350,000 + GST (if applicable) Emily Pendleton

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1A/49 Industrial Avenue, KUNDA PARK

1/11 Endeavour Drive, KUNDA PARK

• Steel clad warehouse area: 229m2 • Air conditioned office area: 59m2 • Total 288m2 • Onsite car parking available • Zoning: Medium Impact Industry • 3 phase power • Sales yard 600m2 also available by negotiation

• 157m2 warehouse, 36m2 mezzanine & 39m2office • Front and side roller doors providing good cross ventilation and easy access • 3 phase power • Phone & internet cabling throughout offices and warehouse • Secure fully fenced hard stand area • Toilet and shower facilities • Ample onsite car parking

For Lease - $46,560 P/A Net Jordan Hayes & Michael Shadforth

For Lease - $25,850 P/A Net Emily Pendleton

For a full list of current opportunities for sale or lease visit raywhitecommercialnortherncorridorgroup.com.au

OUR TEAM

NORTHERN CORRIDOR GROUP

SUNSHINE COAST

MORETON BAY

MICHAEL SHADFORTH COMMERCIAL PRINCIPAL 0488 981 076 michael.shadforth@raywhite.com

CHRIS MASSIE DIRECTOR 0412 490 840 chris.massie@raywhite.com

JULIE RYAN MAJOR ASSET SALES 0447 445 453 julie.ryan@raywhite.com

ASHLEY REES SENIOR PROPERTY ANALYST 0411 707 410 ashley.rees@raywhite.com

EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446 emily.pendleton@raywhite.com

WARWICK PETERS SENIOR BUSINESS BROKER 0412 234 231 warwick.peters@raywhite.com

JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331 jordan.hayes@raywhite.com

AARON CANAVAN SALES & LEASING EXECUTIVE 0447 744 948 aaron.canavan@raywhite.com

JASON WRIGHT ASSET MANAGEMENT SPECIALIST 0451 497 368 jason.wright@raywhite.com

BLAKE PRIMROSE SALES & LEASING EXECUTIVE 0423 555 043 blake.primrose@raywhite.com

PINE RIVERS PETER LAURENT SALES & LEASING EXECUTIVE 0429391675 peter.laurent@raywhite.com

TREVOR NELSON-JONES SALES & LEASING EXECUTIVE 0407 736 521 trevor.nelson-jones@raywhite.com

JUMA MARSTELLA SALES & LEASING EXECUTIVE 0450 360 321 juma.marstella@raywhite.com

BROCKE HAMBRECHT SALES & LEASING EXECUTIVE 0466 599 724 brocke.hambrecht@raywhite.com

raywhitecommercialnortherncorridorgroup.com.au

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