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RAY WHITE COMMERCIAL NORTH COAST CENTRAL

WELCOME

CHRIS MASSIE DIRECTOR 0412 490 840

MORETON BAY CENTRAL

Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in Narangba, Deception Bay & Burpengary. We hope you find this information useful and aim to continually keep you up to date so you can make informed decisions about your property.

ASHLEY REES SENIOR PROPERTY ANALYST 0411 707 410

Kind regards,

Chris Massie

AARON CANAVAN SALES & LEASING EXECUTIVE 0447 744 948

Ashley Rees

MORETON BAY

SUNSHINE COAST

3/125 Morayfield Road Morayfield QLD 4506

1/172 Brisbane Road Mooloolaba QLD 4557

T 1300 255 075 | F 1300 778 887

T 1300 255 075 | F 1300 778 887

BLAKE PRIMROSE SALES & LEASING EXECUTIVE 423 555 043

3RD QUARTER 2018

IN THE KNOW COMMERCIAL PROPERTY FOCUS


DIRECTOR’S U P D AT E S MORETON BAY

SUNSHINE COAST

CHRIS MASSIE THE LATEST PROJECTIONS THROUGH TO 2031 SEES BOTH MORETON BAY AND THE SUNSHINE COAST BRACED FOR ONE OF THE LARGEST POPULATION INFLUXES IN THE COUNTRY

MICHAEL SHADFORTH CLOSER INSPECTION OF THE KEY FACTORS DRIVING THIS LATEST PERIOD OF SUSTAINED GROWTH SHOW THAT THE OPTIMISM IS WELL FOUNDED

Director Moreton Bay

Having worked in this region for over ten years, I clearly remember how difficult it used to be for businesses to justify moving to “the country”. Everything from skilled labour and transport issues through to the lack of good coffee were used as excuses to deal with the growing pains of inner city tenancies. But the tide seems to have turned in the last eighteen months and business owners are finding an increasing number of reasons to make the move north. The key word we keep hearing around Moreton Bay is growth. The latest projections through to 2031 sees both Moreton Bay and the Sunshine Coast braced for one of the largest population influxes in the country. While we all know that traditionally next year’s highway upgrades barely meet last year’s requirements, but the latest announced infrastructure enhancements will go a long way to insulating us from the inner-city headaches and will also see additional money flow into the pockets of local businesses. The key industry to watch over the next year is the transport and logistics industry. A number of national operators have earmarked Caboolture in particular as a satellite distribution hub to service the coming residential construction surge and ongoing last-mile ecommerce delivery requirements of this growing population. .

Director Sunshine Coast

Cautious optimism seems to be the overwhelming consensus as I talk with business owners and investors across the coast. Years of boom and bust cycles have left many of us with a less than bullish attitude, but closer inspection of the key factors driving this latest period of sustained growth show that the optimism is well founded. So why is this time different? For one, the region is benefiting from an unprecedented public and private infrastructure investment of $26.5+ billion across a diverse number of projects. The most notable of which are the Sunshine Coast Airport upgrade, Bruce Highway and Caloundra Rd Interchange upgrade, Aura master planned community and the proposed Light Rail connection. The second factor is the sustained population growth, especially across the southern region. Strong medium-term growth projections are providing local businesses with that cautious optimism necessary to expand their operations and invest in new premises, staff and technology. The final piece of the puzzle is the new industry we are beginning to see moving to the coast. Improving technology means regional businesses can be more competitive on a world market and the traditional prestige of an “Eagle Street” address no longer yields the benefits to outweigh the monetary and lifestyle price tag of a CBD office.

RAY WHITE COMMERCIAL NORTH COAST CENTRAL ANNUAL SALES & LEASING 56 Industrial

79 Industrial

14 Retail

48 Retail

7 Office

44 Office

4 Other

2 Land

6 Land

87 TOTAL SALES

173 TOTAL LEASED


SPOTLIGHT ON MORTON BAY CENTRAL NARANGBA, DECEPTION BAY & BURPENGARY This thin strip of industrial fringing the Bruce Highway has evolved into one of the more sort after precincts in the Northern Corridor. The estates provide a versatile mix of general industry, automotive and trade service businesses servicing both local and regional markets.

Of particular note is the recent sale of the bulk of remaining lots in the Narangba Industrial Estate. While traditionally a high impact/ noxious industry estate, surrounding residential growth has forced a transition to more general industry use by the State Government who manage the estate.

While this area was traditionally viewed as ‘a bridge too far’ by businesses moving out of the inner-north of Brisbane, lower tenancy costs, access to workforce and expansion of metro delivery boundaries by transport companies all assisted in making this area a viable alternative.

Relief is expected to come in the form of the Motorway Business Park at Burpengary, a 27lot light industry subdivision on the western side of the Bruce Highway, though this will do little to satisfy the longer-term requirements of a region that remains one of the fastest growing in the country.

The flood of speculative stock that emerged through the development of Baylink Estate and Business Drive through ’06-’07 left this area particularly susceptible to the impact of the GFC, with significant vacancies and a string of forced sales impacting valuations. The tide has most definitely turned in recent years, to the point where availability of functional stock for lease or sale is extremely limited. North Lakes is providing some tenancy relief, but with rates averaging over 20% higher than these more traditional industrial precincts.

THIS MONTH’S FEATURE ARTICLE WRITER IS AGENT ASHLEY REES OF RAY WHITE COMMERCIAL NORTH COAST CENTRAL

Appetite for industrial tenanted assets is increasing as fears over the future of retail steer investors away from traditional commercial sectors. We anticipate the run of tenanted stand-alone industrial sales in the region to continue as owners capitalise on the compressed yields, especially for those assets with over 3 years remaining on leases.

AV ERAGE NET RENT

VACAN CI ES

SIZE

LAST QUARTER

THIS QUARTER

SIZE

LAST QUARTER

THIS QUARTER

>200sqm

NIL

0

>200sqm

NIL

0

200-500sqm

NIL

7

200-500sqm

NIL

115

500sqm+

NIL

8

500sqm+

NIL

104

TOTAL

NIL

15

TOTAL

NIL

219


MARKET S TAT I S T I C S Ray White Commercial - North Coast Central RESEARCH TEAM The following is a summary of the key Listed and Leased properties in your neighbourhood

LISTED AGENCY

ADDRESS

SUBURB

Ray White NCC

Stage 2, 29-39 Business Drive

Narangba

Ray White NCC

28-30 Richards Road

Narangba

Ray White NCC

1/11-15 Baylink Avenue

Ray White NCC

NLA M2

PRICE

$/SQM

193-445m2

N/A

N/A

986m2

735,000

$745.44

Deception Bay

291

$2,500 PM

$103.10

3/657 Deception Bay Road

Deception Bay

418

$8,333 PM

$239.22

Ray White NCC

2/59-61 Kabi Circuit

Deception Bay

713

$6,832 P/M

$115

Ray White NCC

3/1-3 Business Drive

Narangba

250

$3,000 P/M

$144

PRICE

$/SQM

LEASED AGENCY

ADDRESS

SUBURB

NLA M2

Ray White NCC

4/1-3 Business Drive

Narangba

345

$39,000 PA

$113

Ray White NCC

5/29-39 Business Drive

Narangba

509

$58,800 PA

$115.52

Ray White NCC

4/10-24 Kabi Circuit

Deception Bay

220

$26,400 PA

$120

Ray White NCC

19 Neon Street

Narangba

2,740

$252,000 PA

$92

W E LCOME TO T HE N E I GH B O UR H O O D primeconcretedevelopments.net

studiourban.com.au

harvesttministries.com


CASE STUDY BEST OF BOTH WORLDS

FAST FACTS

An owner occupier has secured the best of both worlds with the help of Chris Massie and Aaron Canavan of Ray White Commercial North Coast Central.

•P  roperty type Partially Tenanted warehouse/office

The challenge for many businesses is trying to find the best place for their business AND the best place to invest their money. Rarely do the two go together without significant compromise on function or return. However, the purchase of 17-19 Imboon St by Hawking Electrical has achieved just that. The 1,320m2 industrial freehold duplex was partially tenanted, returning approximately $70,000 net per annum. This goes a long way to covering the interest component of the overall property loan, allowing the owner to operate from the remaining 50% of the building and make rapid progress on debt reduction via what they would otherwise be paying as rent. Record low interest rates have created opportunities for business owners with the equity required to purchase, as noted by our in-house finance specialist Paul Robertson of Aura Lending. “Businesses that can clear the equity hurdle are well positioned to capitalise on the appetite of lenders for those in the small to medium enterprise sector” This latest sale serves as a platform for increasing property values, both in Deception Bay and surrounding suburbs.

• Address  17-19 Imboon St, Deception Bay • Size 1320m2 1120m2 warehouse 200m2 professional office • Date Listed 02 May 2018 • Marketing Spend $1,400 • Sale price $1,900,000 • Rate  $1,440m2 • Sale date July 2018 • Agents Chris Massie 0412 490 840 Aaron Canavan 0411 707 410 • Agent comments  The knowledge of our in-house broker once again was the difference between a deal that worked for all parties or no-deal


AGENT PROFILE Chris Massie is a renowned and respected sales and leasing agent, known as an authority on commercial and industrial properties across the Moreton Bay Region. He has an innate ability to guide his clients, both buyers and sellers, throughout the sales process in commercial real estate. He joined Ray White Commercial after working in the special projects division for a national civil company and has established himself as a dominant presence in the

Moreton Bay Region over the last ten years. His unmatched stock knowledge and ‘boots on the ground’ work ethic sees him consistently ranked in the top 20 Ray White agents in the country.

CHRIS MASSIE SENIOR SALES & LEASING EXECUTIVE 0412 490 840 chris.massie@raywhite.com

RECENT NOTEWORTHY TRANSACTIONS D

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10/116 Lipscombe Road, DECEPTION BAY

17-19 Imboon Street, DECEPTION BAY

101-103 Kabi Circuit, DECEPTION BAY

• 462m2 modern warehouse facility • 376m2 warehouse and 86m2 mezzanine • Electric container height roller door • On site car parking • Just minutes to Bruce Highway, Bunnings, Costco and North Lakes Business Park

• 1320m2 warehouse/office facility • 1120m2 warehouse and 200m2 office • Container height roller doors • Ample on site exclusive car parks • High power supply • Internal amenities and kitchenette

• Over 3000m2 usable hardstand • 638m2 warehouse + office • Additional warehouse extension available • 160 amps power • Crane provision • 2 x electric roller doors

SOLD $500,000

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Narangba Valley Car Wash, NARANGBA

6 Richards Road, NARANGBA

23-25 Kabi Circuit, DECEPTION BAY

• Fully automated car wash • Two self service bays • Dog wash and vacuum facility • 10 allocated parking spaces • Full security & remote CCTV surveillance

• 419m2 warehouse across 3 units on • 1,012m2 freehold lot • Holding income of $35,715.00 P/A Net • Toilet amenities + kitchenette • 3 phase power • Great access via 6 roller doors

• 2701m2 hardstand/ development • Suited to large vehicles/ storage yard • Located in the Baylink Industrial Estate • Easy access to Gateway Arterial Motorway and Bruce Highway • Approx 2 minutes to North Lakes

SOLD $435,000

SOLD $565,000

SOLD $680,000


PROPERTIES SALE OR LEASE ED LE NEED A S ES

ED LE NEED A S ES

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19 Hasking Street, CABOOLTURE

20 Hamilton Road, WOODFORD

• Well established anchor tenant of over 20 years • $156,791.16 net annual income • 455m2 approx NLA on 713m2 freehold lot • Prominent corner location • 9 tenancies over two levels • On site car parking • Impressive tenancy history and desirable location, this property represents a true “set & forget” investment

• Approved for 45/46 residential lots • Lots ranging from 601m2* to 1,013m2* • High growth area with upgrades to the Town Centre in the works • Neighbouring Woodford State School (P-Year 10), bus stop and local amenities • Located 57 minutes to Brisbane Airport and 1 hour & 8 minutes to Brisbane CBD

For Sale - $1,950,000 Chris Massie

E ALES NEE S I R T

For Sale - Price Upon Application Chris Massie & Michael Shadford

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North Lakes

Brendale

North Harbour

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Corporate Park

55 Lower King Street, CABOOLTURE

Corporate Park East, CABOOLTURE

•Modern two-story, 15 room Back Packers with 120 bed capacity • Prominent location, within the Caboolture Centre Incentives Area • Tightly held accommodation market • Only Back Packers in Caboolture • Leased to September 2019 with 3 x 3 year options • $250,000* per annum net income • Motivated Vendor - please submit all offers

Stage 1 release of Corporate Park East (CPE) offers 19 fully serviced lots of industrial land to what will be a 76-hectare integrated precinct. • Direct access to Bruce Highway & D’Aguilar Highway • 24-hour General Industry use • Flexible lot sizes from 1,000m2 to 10HA • Suit developers or owner occupiers • Design & Construct options available • B-Double access

For Sale - $2,800,000 Chris Massie

For Sale - From $350,000 Chris Massie & Ash Rees

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


ASSET MANAGEMENT RETAIL SHOP LEASES Not just for retail any more. . . 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. 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 prior to the tenant signing the lease

- Outgoings must be audited annually for net leases

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

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.

OUR TEAM ACHIEVED SIGNIFICANT RESULTS IN 2017 AND BY ALL ACCOUNTS 2018 IS SHAPING UP TO EXCEED THOSE LOFTY STANDARDS For all your industrial, commercial, project marketing and property management needs contact us on 1300 25 50 75 or visit our website raywhitecommercialnorthcoastcentral.com for more information Facebook.com/rwcncc Twitter.com/rwcncc Instagram.com/rwcncc

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

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

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

JORDAN HAYES SALES & LEASING EXECUTIVE 0417 999 331 jordan.hayes@raywhite.com JASON WRIGHT COMMERCIAL ASSET INVESTMENT SUPPORT MANAGER 0451 497 368 jason.wright@raywhite.com EMILY PENDLETON SALES & LEASING EXECUTIVE 0402 435 446 emily.pendleton@raywhite.com

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

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

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

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Q3 2018 In the Know - Moreton Bay Central | Ray White Commercial | Northern Corridor Group  

Our quarterly summary of commercial property activity in the Moreton Bay Central region and across the greater northern corridor.

Q3 2018 In the Know - Moreton Bay Central | Ray White Commercial | Northern Corridor Group  

Our quarterly summary of commercial property activity in the Moreton Bay Central region and across the greater northern corridor.