Demand for well-tenanted commercial investments has extended to the Gold Coast with exceptional results being recorded – even in enclaves better known for waves than white collar services.
A modest commercial space fronting Queensland’s idyllic Currumbin Beach was snapped up recently ahead of auction on a sub 4 percent yield.
With national tenant ABS Facade committed to a three-year lease with another three-year option to 2026 on the Pacific Parade address, a local investor tabled an $800,000 cash offer for the ground floor 31sqm retail / office space.
Generating income of $31,060 annually (net) the purchase reflected a tight, initial yield of 3.88%. The property was sold 16 days into the four-week campaign, which attracted four pre-auction offers.
The premium represents an exceptional $25,806 per square metre.
Selling agent, Tara Imlach of LJ Hooker Commercial Southern Gold Coast, said the square metre rate reflected the under-supply of commercial stock in the city.
The square metre rate achieved was close to double what would have been expected before the pandemic, she said.
"The investor lives in the area and wanted an investment nearby," said Ms Imlach. "The commercial strip at Currumbin is in an exclusive location and locals know the value and potential it holds.
"The tenant is ABS Façade and one of the company's owners lives locally. It’s an amazing place to go to work – looking out to one of the best beaches in Australia, with cafes and the iconic surf club across the road."
The marketed asset is one of four strata-titled units at the 778 Pacific Parade address.
Ms Imlach said premiums were being paid for commercial investments along Gold Coast Highway, including at Palm Beach to the immediate north.
But she said the result in Pacific Parade - better known for setting residential sales records - illustrated the motivation of investors to get a foothold into commercial assets, even outside commercial precincts.
"Medical centres, chemists and bank investments are commanding strong premiums, but when you see something of this size - it literally houses a chair and a desk with a view - generate such a strong result, it shows the appetite for commercial assets is strong, everywhere."
Currumbin is a five-minute drive from Gold Coast Airport. Regional suburbs and towns in proximity to airports have attracted significant demand in the wake of the pandemic.
Share
