Page 1

RAY WHITE COMMERCIAL NORTH COAST CENTRAL

WELCOME

CHRIS MASSIE DIRECTOR 0412 490 840

NORTH LAKES

Thank you for the opportunity to provide you with our quarterly summary of commercial property activity in North Lakes and across the greater northern corridor.

ASHLEY REES SENIOR PROPERTY ANALYST 0411 707 410

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. 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 NORTH LAKES NORTH LAKES North Lakes continues to set the benchmark for commercial sale and lease rates across the region and has topped the list of population growth hot spots in Queensland, according to a new report by Matusik Property Insights. Along with North Lakes, the adjoining suburbs of Dakabin & Kallangur also made the list of Top 5 fastest growing suburbs. North Lakes and the surrounding Moreton Bay region already benefits from a strong regional economy valued at nearly $13 billion in 2016. And with average annual household incomes already roughly 12 per cent higher than that of greater Brisbane, the spending power of local residents is only set to further benefit new retailers, commercial businesses and hospitality operators relocating to North Lakes.

Significant investment in infrastructure in North Lakes and surrounding areas, along with affordability issues in inner-Brisbane has been the main catalyst for the growth and subsequent success of the commercial ventures. However, there is an additional benefit experienced by businesses operating in what has been awarded Australia’s No.1 master planned community. The “North Lakes Effect” is the expression used by some to describe the reluctance of residents to leave their immediate area, instead choosing to live, work and shop within the borders of the estate. This may be attributed to the higher than average ‘ex-pat’ community or the congestion issues in nearby suburbs. In either case, the result is positive for local operators catering to this catchment.

VACAN CI ES I N DU S T R I AL

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

The higher average rents result in few general industry businesses calling North Lakes home, but as the business park land vacancies near capacity, we can expect tenancy competition to increase for functional retail and serviceindustry properties. Improved remote working capacity and inner-city congestion will continue to make these fringe precincts viable alternatives for major office requirements in the near future.

AV ERAGE NET RENT IND US T RIA L

SIZE

LAST QUARTER

THIS QUARTER

SIZE

LAST QUARTER

THIS QUARTER

>200sqm

NIL

13

>200sqm

NIL

193

200-500sqm

NIL

7

200-500sqm

NIL

182

500sqm+

NIL

4

500sqm+

NIL

216

TOTAL

NIL

24

TOTAL

NIL

197


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

CITY

BUILDING AREA

NETT PM NET

Ray White NCC

1A/27 Discovery Drive

NORTH LAKES

50 sqm

$26,760

Ray White NCC

6/37 Flinders Parade

NORTH LAKES

108 sqm

$21,600

Ray White NCC

101 Flinders Parade

NORTH LAKES

988 sqm

$227,240

Ray White NCC

8A/4-6 Burke Cres

NORTH LAKES

335 sqm

$95,484

Ray White NCC

4/9 Flinders Parade

NORTH LAKES

245 sqm

$50,000

Ray White NCC

1/75 Flinders Parade (SALE)

NORTH LAKES

310 sqm

$725,000

BUILDING AREA

LEASE PRICE

LEASED AGENCY

ADDRESS

Ray White NCC

6/4-6 Burke Crescent

NORTH LAKES

150 sqm

$80,000

Ray White NCC

5/63 Flinders Parade

NORTH LAKES

258 sqm

$65,000

Ray White NCC

2F/2-4 Flinders Parade

NORTH LAKES

147 sqm

$19,000

Ray White NCC

1 /4-6 Burke Crescent

NORTH LAKES

486 sqm

$127,410

Ray White NCC

4/29 Flinders Parade

NORTH LAKES

302 sqm

$31,710

WELCO M E TO T HE NEI G H B O U R H O OD

CITY


CASE STUDY ACTIVE TARGETING WORKS The flood of stock coming on the market in North Lakes created a glut of supply over the last two years. In response to the obvious need for pro-active marketing, we developed an Active Targeting process designed to identify businesses most likely to suit a specific property and engage with them, rather than passively waiting for a phone call. The result has been a string of lease deals that pair up complementary businesses into mutually beneficial tenancy clusters. Examples include a supplement store next to a gym, a BBQ smoke house next to a brewery, a café next to a car wash and a music store next to a school supplies retailer. North Lakes residents love to shop local and by providing complementary clusters of businesses in convenient locations, we have helped create positive outcomes for owners, businesses and consumers.

FAST FACTS •P  roperty type Commercial leasing • Address - 4 Burke Crescent - 9 Flinders Parade - 63 Flinders Parade • Tenants Secured - Totally Workwear - Nutrition Warehouse - Black Tan Coffee - Crocs - Ellaways Music - Spa World - Pet World - Moreton Theatre Company - Fresh Hot Smoked - Total Tools • Average Marketing Spend $1,500 • Sale date 08 Aug 2018 • Agents Chris Massie 0412 490 840 Aaron Canavan 0447 744 948 Blake Primrose 0423 555 043 • Agent comments  “This is by far the best way for owners to cut through the clutter of listings and truly stand out to potential tenants”.


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 ED

! LD TIES N O S ER E OR

M

D EE

OP

PR

T AC DED R E T E

ED

! LD TIES N O S ER

D EE

E OR

M

N N COERTIES R E OP

D R UN ORE P

OP

PR

M

17 Hasking Street, CABOOLTURE

4/299 Morayfield Road, MORAYFIELD

179 Oakey Flat Road, MORAYFIELD

• Multi-tenanted medical investment • Returning $160,788.12 per annum Net • Modern offices • Ducted air-conditioning • Kitchen and toilet facilities • Allocated parking & signage

• 200m2 (approx) warehouse • 150m2 of exclusive use yard • 3yr lease ending 2020 to Cross Fit gym • Returning $21,331.80 per annum Net • Tenant pays 100% of outgoings

• 1ha clear, level corner block • Large existing residence • Development Approval for 160 place child care plus additional after-school care • Significant planning works completed & available to purchaser

SOLD $2,150,000

! LD TIES N O S ER

SOLD $305,000

ED

! LD TIES N O S ER

D EE

E OR

M

T AC DED R E T E

ED

D EE

OP

PR

Under Contract

E OR

M

OP

PR

N N COERTIES R E OP

D R UN ORE P M

23-25 Kabi Circuit, DECEPTION BAY

8/6-12 Dickson Road, MORAYFIELD

2/75 Flinders Parade, NORTH LAKES

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

• 212m2 industrial unit with office space • Leased until June 2019 • Excellent on-site car parking • nternal toilets • Container height roller doors • 3 phase power

• 154m2 comprising of 105m2 on the ground floor + 49m2 mezzanine • Architecturally designed office/warehouse units • Container height roller doors • On site car parking

SOLD $680,000

SOLD $452,000

Under Contract


GENERAL INDUSTRY LAND PURPOSE BUILT LEASE HARDSTAND LEASE

Port of Brisbane

Brisbane CBD North Lakes

Brendale

North Harbour

Corporate Park

The opportunity Bruce HWY 3 Mins

Airport 25 Mins

You can now secure fully serviced General Industry land lots in Caboolture’s first estate release for over ten years. Corporate Park, at the Bribie Island Rd and Bruce Highway interchange, has long been the area’s preferred location for industrial tenants and owneroccupiers in Moreton Bay. The estate is now at capacity, so eyes are turning to the next release of Corporate Park East. Contact us today for a price list or to help design your ideal premises.

Port of Brisbane 30 Mins

Ray White Commercial North Coast Central

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

ASHLEY REES ashley.rees@raywhite.com 0411 707 410


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 423 555 043 blake.primrose@raywhite.com

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

In the know - North Lakes  

Our quarterly summary of commercial property activity in the North Lakes region and across the greater northern corridor.

In the know - North Lakes  

Our quarterly summary of commercial property activity in the North Lakes region and across the greater northern corridor.