Regional Affordability Still Entices Investors

An industrial property in Taree has attracted the interest of a Sydney-based investor as the post-Covid trend of city purchasers seeking out regional yields continues. 

The fully-tenanted property at 16 Arkwright Crescent, which includes building improvements of 1,278sqm across a 3,170sqm site, sold for $2.25m after generating strong investor interest during the campaign. The five leases on the property expire at varying times. The sale reflected a passing yield of six percent.

LJ Hooker Commercial Taree Principal Amanda Tate said the purchaser was attracted to the exceptionally-low vacancy rates across the Manning region for industrial property following the influx of new business operators since Covid-19. 

“The property is in an industrial precinct that’s midway between Taree’s and Wingham’s CBDs and just over 10 minutes to the Pacific Highway,” she said. 

“It’s very accessible for heavy transport to Newcastle and Sydney. 

“The property has been well-maintained and offers a 45m frontage to the street. 

“We saw growth in economic activity around the Manning region following Covid as people came here for both lifestyle and business ventures and that movement tightened occupancy levels.” 

The warehouse space offers five bays, each with office and full amenities. Semi-trailer access and parking for 18 vehicles is also accommodated on-site. Two of the bays include load bearing mezzanines for additional storage and office space. A two-bedroom manager’s residence is also included. 

The property last exchanged for $75,000 as a vacant lot in 2003. 

Co-agent on the listing, Cameron Tate, said the Manning region offered affordability that was around 20% below what was being paid for comparable assets in the Hunter and Central Coast. 

“We’re only two hours north of Newcastle’s industrial suburbs but we’re a much more affordable option for owner-occupants and tenants,” he said. “Being adjacent to the Pacific Motorway, we’re perfectly positioned for transport operators. 

“Investors have watched the demand for industrial surge in the area while there’s been an undersupply of new stock. We’re commonly seeing investors achieve 6-7% yields for good industrial assets in the area.” 

Reach out to the team at LJ Hooker Commercial Taree to find out more about the Taree commercial property market and read our Commercial Magazine for the latest commercial real estate opportunities and insights.