Celebrating Major Milestones for LJ Hooker Commercial Central Coast and North NT

LJ Hooker Commercial's Central Coast and Commercial North NT's offices celebrated major milestones with the brand last month, notching more than 20 years each delivering exceptional outcomes for clients.

We take a look at how their marketplaces have changed over the period and what's ahead for business owners and investors.

LJ Hooker Commercial North NT 

LJ Hooker Commercial’s profile in the Northern Territory may have started officially in 2001, but its origins date back to the mid-1990s.

Longstanding NT property figure David Loy and his family operated ASREAL for many years and merged with former LJ Hooker Alice Springs Principal Doug Fraser in 1996. Four years later, David moved to Darwin to lead LJ Hooker.

“There were more diverse business opportunities coming out of Darwin whereas Alice Springs was primarily residential,” said Mr Loy.

A year later, the LJ Hooker Commercial offering was rolled-out around Australia with Mr Loy becoming the Principal of the Darwin franchise.

Twenty-two years on, the LJ Hooker Commercial brand has embarked on a new chapter, rebranding from LJ Hooker Commercial Darwin to LJ Hooker Commercial North NT. Mr Loy has been joined by highly-experienced commercial real estate brothers Ryan and Lee Doyle, who previously operated North Commercial NT. Together, the Doyles – who have become the Operating Directors in the expanded business – add even more experience and expertise to the merger, with a strong reputation for quality advice and results.

LJ Hooker Commercial North NT has become one of the largest managers of commercial property assets in the Territory. The strategic expansion comes as the NT government embarks on a record road funding program and more population growth is planned for the region. The Australian Government also recently identified the NT as being strategically significant for its security.

Mr Loy is excited about what the future offers, especially when reflecting on how much the NT’s commercial property market has changed over two decades.

“We’ve had more institutional investors come to Darwin since 2000,” said Mr Loy. “When I arrived, there would have been one McDonalds - there’s probably more than 10, now.

“But the market is still dominated by private investors. After Cyclone Tracy wiped everything out in 1974, the city was rebuilt by about ten families, and we’ve seen a lot of intergenerational ownership since then. The commercial property market is very tightly-held.”

Resources reserves have underpinned a lot of Darwin’s growth. Oil and gas industry stakeholders – led by Santos / ConocoPhillips and Inplex - have had a strong influence on the expansion of the city’s marine and industrial areas. The rail link from Alice Springs to Darwin has also added to traffic at the port.

Collectively, the major infrastructure projects have been the leading drivers for employment in the Territory.

Defence commitments have helped diversify the economy, said Mr Loy.

“There’s a lot of training programs for US military based in the Territory and we have visiting forces from Singapore, Malaysia, Indonesia and Japan that utilise our backyard once or twice a year for exercises,” he said.

“The Darwin Airport actually hosts a RAAF base alongside the civilian side of the airport which is owned by private equity.”

There's been a small amount of A-grade office stock released and refurbished in the city over the last decade with mining, gas, legal and government tenants typically absorbing the floorspace.

“On the retail front, small neighbourhood shopping centres have been introduced over the last two decades to support the new communities on the city fringe.

“We do get interstate and private equity investors for larger properties but, on the whole, the majority of investors are locals who like to drive past their property and have the peace of mind that it’s being well looked after,” said Mr Loy.

Darwin's yields are attractive for investors. Mr Loy said a brand-new, purpose-built asset for a single tenant on 10-15 year lease with options can generate 6-6.5%, whereas a multi-tenanted facility may generate 8%.

He said enquiry was picking-up for investments. The area’s proximity to southern Asia had also made Darwin a prime investment opportunity.

“Singapore is only a four-hour flight away from Darwin. The Vietnamese economy has been accelerating and there’s been investors from there looking at motels, resorts and other hospitality assets, here,” he said.

“International education has been a great relationship builder between Darwin and Asia. There’s a new university under construction and we already have Charles Darwin University, which is delivering a purpose-built facility for international students.

“The students can come and undertake the studies here and buy property with their parents.”

Mr Loy said the longevity of the LJ Hooker Commercial brand in the NT has come down to market knowledge, connections, prompt service and integrity.

“We’ve built a business on offering genuine support that leads to the best possible outcomes for our clients,” said Loy. “With the expansion of the business with Ryan and Lee, we’re well-positioned for continued growth.”

LJ Hooker Commercial Central Coast 

As the midway point between Sydney and Newcastle, the Central Coast’s economy has developed over time on the back of manufacturing, transport and logistics.

“The efficiencies that the region offers, and its affordability compared to Sydney, has really underpinned the commercial property market across the Coast,” said LJ Hooker Commercial Central Coast Director Ty Blanch.

“Twenty to thirty years ago we saw brands like Masterfoods, Mars and Sanitarium set-up operations here because of the proximity to Sydney. They were able to buy hectares of undeveloped land at $20-$30psm and be five minutes from the freeway.

“Tuggerah was basically full of cow paddocks when I started in real estate in the 1980s.

“I sold 80% of the land in the Tuggerah Business Park. When it was first released, it was selling for $50-$60psm whereas, today, it's closer to $500psm.

“Being right next to the M1, it's probably had more growth than any other suburb on the Central Coast with the Westfield Shopping Centre underpinning its retail economy.”

Since 2001, LJ Hooker Commercial Central Coast has been servicing the full needs of commercial property clients. The business began under the leadership of Wayne Dowling (who remains with the business) and Steve McGowan.

The business had immediate success, and two years later, Mr Blanch – who was then LJ Hooker Commercial’s Top Sales and Leasing Agent in the network – joined as a Director.

While the region’s strength as an industrial hub has seen them take on a lot of industrial clients – the office has significant experience marketing industrial-zoned land, providing developers with advisory services for design and construction, leasing and then managing the assets - the agency’s 22-person office has specialists who are just as adept at retail and office sales, leasing and management. Indeed, the office currently has just under 1000 properties under management across the spectrum of asset classes.

“As we’ve been here for 22 years, we’ve worked with a broad range of clients from national operators to private syndicates, small business owners and intergenerational clients,” said Mr Blanch.

“In terms of our intergenerational clients, we’ve helped families leverage commercial property decisions to grow their wealth. For instance, we might have an SMSF investor who we are managing a strata industrial property for, and then we have his children’s business in the property as tenants, which is a strategic risk mitigation.

“We have many similar examples like this because over 22 years we’ve had a commitment to service that has built longstanding relationships and repeat business with clients.”

In earlier times, LJ Hooker Commercial Central Coast would be involved in the sale of a lot of large-scale industrial lots.

But as the area has evolved, a lot of the industrial land has been taken up.

“About 65% of the Warner Business Park (in Jilliby) has been taken up by owner-occupants out of Western Sydney who were drawn there for the affordability and access to the western suburbs.

“But, more often, we’re dealing with smaller warehouses in the industrial market, nowadays. The small business sector has really grown on the Central Coast and that’s where a lot of the purchase and leasing activity is coming from.”

Mr Blanch said LJ Hooker Commercial Central Coast’s clients have always appreciated the collaboration and expertise of a large-scale team on the ground, along with the accessibility to management.

“All the owners in the business have made themselves accessible to clients over 22 years, and that’s not something you can enjoy at every agency,” said Mr Blanch.

“LJ Hooker Commercial Central Coast has always attracted the region’s best connected and savvy commercial real estate agents and property managers, and having the direct support of the business owners behind them has helped deliver an unmatched service offering.”

Reach out to the teams at LJ Hooker Commercial North NT and LJ Hooker Commercial Central Coast to find out more about their local markets and the latest property listings to assist with your next commercial real estate move.