The latest in Gold Coast commercial property news
A rising star in commercial property sold an office suite in record time as he builds his own name. READ THE FULL REPORT
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All the latest news in commercial property on the Gold Coast
BURLEIGH RECORD BREAKER
INDUSTRIAL premises in Burleigh Heads home to a leading Gold Coast-based steel supplier has sold to a Brisbane investor for $4.5 million.
Cushman & Wakefield’s Sean O’Connor and Josh Wright negotiated the deal for 10a Alex Fisher Drive on behalf of the owner Buyrite Steel Qld, which has occupied the building 1999sq m building since 2005.
The sale involved the seller negotiating a new 10-year lease and rental reduction from $318,500 per annum to $270,000 (plus outgoings and GST) and reflects a yield of 6 per cent.
Mr Wright said the sale price indicated the strength of the lease term and the building quality.
He said there were 37 inquiries during the campaign from qualified buyers. The property sold two days prior to its auction on August 5.
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Mr O’Connor said the sale was unprecedented. “For Burleigh Head’s industrial market, the yield is record-breaking,” he said.
“We achieved a solid sales rate of $2250 a square metre and the lease we negotiated sets a new benchmark.
“Under normal circumstances this result would be outstanding, but to occur amid a global pandemic is extraordinary. It goes to show yet again the resilience and strength of the Burleigh and Gold Coast industrial market.”
The Burleigh factory services the southern Gold Coast and northern NSW markets for Buyrite.
The move to sell the property, which the O’Bryan family acquired for $1.65 million in 2019, comes after Buyrite opened its new 2400sq m facility on Link Road, Yatala earlier this year for the northern market.
Features of the Alex Fisher Drive property include 12m-high internal clearance, a five-tonne gantry crane and three automatic roller doors as well as offices with airconditioning.
RISING STAR FOLLOWS THE FAMILY LEAD
JACKSON Rameau may be the grandson of ex-PRD heavy hitter Bill Rameau and the stepson of leading Ray White agent Michael Willems, but he’s blazing a trail all his own.
Mr Rameau finished year 12 at The Southport School in 2018 and in the following year joined Mr Willems at Ray White Commercial on the Gold Coast.
In just 19 months, he has already racked up a number of impressive deals, including selling a strata property in just 72 hours and taken out a top real estate award.
Mr Rameau said the sale of the 100sq m space at 2/33 Elkhorn Ave in Surfers Paradise came after he was approached by another business owner in the same building seeking more space.
He approached the owner and within 72 hours had a deal to sell the space for $480,000.
It is one reason he was signalled out recently at the Ray White Commercial International Awards where he went home with the prize for the No.1 junior salesperson award for Australia and internationally.
“I did not know I was going to get it. At 19, I was pretty stoked,” he said.
“My pop was No. 1 at PRD, my stepdad is No. 1 at Ray White and now I’m No. 1 junior,” Mr Rameau said.
OPTIMISTIC OUTLOOK FOR MARKET’S FUTURE
A LEADING commercial property agency is forecasting yields for office buildings will become sharper not softer on the Gold Coast during COVID-19 with the sector bucking trends seen in southern capital cities.
A report on the Gold Coast office market authored by associate director of research Karina Sales notes that gross face rents are holding steady for commercial-grade buildings while unlike Melbourne the majority of office tenants have returned to the workplace.
A-grade stock rents on average across the Gold Coast for between $446 and $473 a square metre (gross face rent) and b-grade for between $368 and $389.
Despite these factors and due to uncertain market conditions office building owners are preferring to retain their assets rather than release them to the market, the report reads.
This has resulted in a dearth of stock on the market and sales over $5m.
The one building to sell in that market, 38 Cavill Avenue in Surfers Paradise, sold with three of its six floors vacant on a near 5 per cent yield. Sixteen would-be buyers inspected the property and offers were made by both Gold Coast and interstate parties.
The property was marketed by Steven King and James Crawford of Colliers International.
“The only sale of a Gold Coast office building executed and settled this year demonstrates solid investment appetite across the regional market,” the report reads.
“Due to the current economic uncertainty, we forecast a gradual softening of yields across the Australian office market. In the case of the Gold Coast office market, we have not seen any evidence to support this trend and in fact the only office building sale (over $5m) transacted this year reflects a trend towards tighter yields.”
Another plus for the Gold Coast sector is the diverse ownership base with 30 per cent of stock in private hands and 25 per cent held by institutional investors.
Domestic, not international buyers, also dominate, which is another favourable aspect when international travel is largely unavailable.
However, the report warns that there is a risk to the sector from tenants servicing the international education and tourism sectors.
This is expected to put upward pressure on vacancy rates during the next one to two years due to the dominance of tourism in the Gold Coast economy.
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