Owner liquidation sees Southport office lead most-viewed listings
Investors are still in the market for offices and retail on both the sale and leasing markets, with both featuring heavily amongst Realcommercial’s most-viewed listings of the week.
A Queensland office building seeking a quick sale was number one nationally last week, while other well-received listings are racking up views despite being yet to open.
Here is the top property in your state over the past seven days.
QLD – URGENT SALE FIRES UP SOUTHPORT OFFICE
The need for a quick sale has seen a flood of interest for a Southport office building, which rose to the top of Realcommercial’s searches last week.
The 907sqm freehold building on the edge of the Southport CBD is listed as requiring an immediate sale, with the owners liquidating after holding the asset for the last 19 years.
It has a number of tenancies in place and the potential to earn $287,350-$320,190 per annum when fully leased.
REA Group chief economist says with coronavirus creating a financial downturn, many investors will be circling potential distressed sales in search of a good deal.
“That part of Queensland is popular, but I would suggest it’s the distressed element that people are interested in,” Conisbee says.
“We know there are a lot of people trying to find bargains at the moment.”
NSW – FUTURE NORTH RYDE SHOPS SPARK TENANT INTEREST
Lachlan’s Square Village, 1 Jarvis Circuit, North Ryde
An artist’s impression of the Lachlan’s Square retail development.
Retailers are continuing to seek space in major population growth zones, with a soon-to-be-opened shopping centre in Sydney’s west grabbing plenty of attention.
The Lachlan’s Square Village retail hub in North Ryde ranked as the number one listing in NSW last week as it seeks to secure tenants for its 17 specialty retail spaces.
Anchored by a Coles supermarket, the property has shops ranging from 30sqm to 500sqm and is slated to open soon.
“With good population growth forecast surrounding a future neighbourhood centre, it’s the kind of retail that is appealing to tenants right now,” Conisbee says.
“With retail it’s all about population. If you’ve got a big growth in the number of people living an area then that will bring a lot of extra spending.”
VIC – TENANTS EYE OFF MELBOURNE SQUARE
Melbourne Square Commercial, 93 – 119 Kavanagh Street, Southbank
The upcoming Melbourne Square precinct.
A completion date might be up to three years away, but tenants are already eyeing the opportunity to get into the new Melbourne Square Commercial tower.
The Southbank property’s commercial component is due for completion in 2023, but the site’s office spaces are already up for grabs.
When finished, it will offer 37,440sqm of office space across 29 levels, with typical floor plates of between 1605-1666sqm and a host of end-of-trip and wellness facilities.
Future tenants will also find a five-star Hilton Hotel, full-line Woolworths Supermarket, dining and childcare within the precinct.
“It’s very interesting that leasing listings are doing so well (in the current market),” Conisbee says.
TAS – HOBART CBD OFFICE WITH ROOM TO GROW
51 Campbell St in Hobart.
CBD office buildings are always popular, and with the potential to redevelop in the future this Hobart property is stronger than most.
Currently home to two secure tenancies – Healthscope and Campbell St Dental – as well as more than 350sqm of vacant office space, the property is on the northern edge of the CBD and features a 873sqm parcel of land with three street frontages.
With residential zoning, agents say the asset offers a good long-term investment, while Conisbee says inner-city residential sites are in short supply in the Hobart market.
SA – KEEP THE APARTMENTS OR DEVELOP?
The property in the Adelaide CBD.
Topping South Australia’s commercial property listings for the second week running, this CBD apartment block in the Adelaide CBD has the potential for multiple uses.
McGees Property agents have listed the Eliza St building as “hotel and leisure” as well as “offices”, though it currently returns more than $112,000 annual through its five residential tenancies for the tw0- and three-bedroom apartments.
While it was completely rebuilt just 10 years ago, the property has major scope, courtesy of its 450sqm land parcel.
It is priced at $2 million and has no set sale date.
WA – CONVENIENCE RETAIL FUELD DEMAND FOR UNITED SERVO
The United service station at Bibra Lake in WA.
Service stations are a regular fixture among the most-viewed Realcommercial properties, and a newly listed fuel and convenience retail asset east of Fremantle is the latest to win over potential investors.
The United service station at Bibra Lake offers an almost new 15-year lease, plus 3% annual rent increases on a prominent 2038sqm site in a growing employment hub.
Currently returning $290,000 per annum plus GST, Conisbee says the strength of a long-term lease to a major retailer will always appeal to investors.
ACT – CHANCE TO TAKE ADVANTAGE OF CANBERRA OFFICE CLIMATE
The Deaking office building is offered with vacant possession or a short-term lease.
With much of the market underpinned by government tenancies and demand, Conisbee rates Canberra as the best-positioned to perform throughout the coronavirus crisis, and this Deakin building could be a perfect entry-level opportunity.
Offered with vacant possession or with a short-term lease in place, the two-level office block could be occupied immediately, or refurbished and repositioned to appeal to new tenants.
It’s also priced at just $1.495 million.
NT – INDUSTRIAL ALONGSIDE DARWIN AIRPORT
The Darwin industrial facility.
As online shopping puts industrial and warehousing assets firmly in the spotlight, a major property alongside Darwin airport may have hit the market at just the right time.
The 11,300sqm site at Winnellie features a secure lease to Lasandu for 90% of the property, with features including a 3585sqm warehouse, 400sqm of office space, eight high clearance roller doors, a dock levelling station, three site entry points and 53 on-site car parks.
