Market Report - The Sunshine Coast North Commercial Property Team
“If you want a haircut, go to the barber”.
This simple saying stuck in my head this year when a client explained why he came to us for advice on his commercial property.
To put this into context, our RWC Northern Corridor Group team had more agents on the ground and completed more transactions in FY24 than any other commercial real estate firm across the Northern Corridor.
151 SALES worth over $300,000,000 for our clients
246 LEASES secured more than $15,400,000 in rent for our clients
While no-one has a crystal ball, we can be quite certain that the following key drivers will continue to influence the Northern Corridor commercial property market in the next financial year:
Ashley Rees Director | Senior Analyst 0411 707
410
Northern Corridor Market Drivers
FY 2025
POPULATION GROWTH
We have double the population of Rockhampton projected to move to the Northern Corridor over the next two decades, which makes this area one of the most significant residential growth corridors in Australia. The investment in infrastructure and the positioning of businesses to capitalise on this workforce and customer base is already noticeable and will continue to drive investment in the coming year.
LAND SUPPLY CONSTRAINTS
The next five years in particular will see further tightening of what is already a chronic supply shortage of industrial land in the region. Vacant industrial rates have increased from $285m2 in 2020 to over $550m2 in 2024. There is now no remaining land earmarked for General Industry subdivision between Caboolture and Brisbane and a recent needs analysis identified that the Sunshine Coast was almost 400ha of a “healthy” future supply pipeline.
CONSTRUCTION COSTS
Construction prices have been a major source of the CPI issues that drove the interest rate hikes of 2023. There has been a perfect storm of international conflict, labour shortages, fuel, materials and competing infrastructure projects impacting all facets of commercial construction. The South East Queensland market has been impacted more than most areas due to the Olympic infrastructure pipeline of projects that has taken tier 1 builders out of the private industrial construction pool. This, combined with the land supply constraints, will likely see continued upward pressure on finished product costs for new industrial buildings.
AFFORDABLE HOUSING & LABOUR
Industrial businesses across the country are struggling to access the necessary skilled labour. With housing affordability and cost of commuting being the two factors that dictate workforce location the Northern Corridor is positioned to provide rapid relief to this pent up demand. Caboolture West alone has the potential to supply close to 40,000 new homes, spurred on by the Government’s Affordable Housing mandate. This is proving doubly attractive for businesses in the trade services and building supply industries, who want to position themselves to servicing the demand from the same residential construction projects that this new labour force will call home.
Recent Transactions For Sale
• Current lease expiry 30/09/2030
• 2 x 5 year option past current expiry
• The project has delivered more than 2,000m2 of retail including an IGA Supermarket, and a 2,500m2 health precinct.
• Annual CPI increases
• Market review 1/10/2026
• $212,220.31 net annual income
• Director Guarantees in place
• 100% recoverable outgoings
• 1,760m2 of land
Cory 0421 004 484 | Fraser 0423 273 438 FOR SALE - OFFERS OVER $2,850,000
• Other tenants include a doctors’ practice, national pharmacy, dentist, hairdresser, gym, bottle shop, mixed food vendors and many more.
Samuel Hoy | 0423 795 273
• NLA: 449m2*
• Purchase Unit 3, 4 or Both
• 4 Units in the complex - Fully Fenced
• Rare high exposure site on a significant thoroughfare
• Medium Impact Industry
• $297,518 P/A NET allowing for future rental upside
• Very few opportunities in the estate to purchase a tenanted investment
• Building is well maintained and is equipped for food manufacturing with limited options on the Sunshine Coast
• Healthy mix of business activity in the park
• Sought after location
• Two high performing tenants provides less risk and future flexibility
Michael 0488 981 076 | Samuel 0423 795 273
Cory 0421 004 484 | Fraser 0423 273 438 FOR SALE - $1,600,000
