Commercial sector on rise

THE commercial sector is one of the bright spots in Queensland's Far North property market.

THE commercial sector is one of the bright spots in Queensland's Far North property market.

Herron Todd White research director Rick Carr said there was a small increase in volume last year, mainly by owner-occupiers than investors.

"Commercial property yields have improved from the record low levels observed at the start of 2008 to now average in the 7.5 per cent to 8.5 per cent range, compared with the 6.75 per cent to 7.25 per cent range previously evident," he said.

"The spread of yields has also widened as a result of stronger demand for properties that are well located, modern and with good tenant profiles, but significantly weaker demand for secondary and/or vacant product."

Mr Carr said $1 million was the cut-off point with more interest in smaller than larger properties.

He said interest in secondary properties "dropped away rapidly".

Economist Bill Cummings said there had been a revival in commercial development. He said there would be "some lift" in commercial construction in the new financial year.

Go Commercial managing director Stuart Carr said he had leased out two good-quality commercial properties at Hollingsworth St, Portsmith, and was now looking for investor buyers.

"The sheds were for sale or lease. We have leased both with shed 2 to national tenant Salmat," he said.

Mr Carr said the terms were three years plus three years, paying $23,280 a year plus GST and 100 per cent of the outgoings and the same for the third shed.

"The asking price for both units, which are now fully leased, is $325,000 each and is negotiable." he said.