Rockhampton’s commercial market is ‘ticking along’

National report states there had been no enquiries for new leasing while COVID-19 restrictions were in place. Agents say this was not the case.

ROCKHAMPTON'S commercial property market is "ticking along" according to local agents who have experienced a number of sales and leases throughout 2020, especially in the last month.

Herron Todd White's commercial month in review for June reported the leasing and selling market conditions for the retail property sector in Central Queensland were slow in the lead up to the COVID-19 pandemic and vacancies were relatively high in most major urban localities.

The report stated there had been no enquiries for new leasing while the COVID-19 restrictions were in place and it was unlikely new tenants would be looking to take existing vacancies for some time.

"Prospects for rental growth remain low due to high vacancy rates," the report read.

Commercial Sales and Leasing Consultant at Knight Frank Rockhampton, Jonathon Offord, agreed that retail lease enquiry was down but said in general it had been quite surprising.

"In the last month alone, I have completed a number of lease negotiations for a mixture of uses," he said.

 

Commercial Sales and Leasing Consultant at Knight Frank Rockhampton Jonathon Offord.

 

"Both 130 Victoria Parade and 8 Archer Street now have a fully occupied status for the first time in at least six years."

Mr Offord said two office leases had been signed in the last month for both 36 East Street and 1 and 3/299 Richardson Rd.

He said he had also leased an office at 14 Denham Street, as well as office/sheds at 238 Lion Creek Rd, 11 Sturt St and 60360 Bruce Hwy.

Commercial Sales and Leasing Specialist for Mr Real Estate Rockhampton, Brian Geaney said Rockhampton was holding up better than expected during the COVID-19 pandemic.

"I have been receiving good enquiries for leasing and sales throughout all of 2020," he said.

Mr Geaney had also leased a number of offices and other properties in the last month, including the first floor of 192 Quay St and 224 Quay St. He said from mid-March to now he had leased eight properties throughout Rockhampton.

 

The first floor of 192 Quay St was leased on June 11.

 

"While we have Investors wanting to purchase properties in Rockhampton, not many properties are available for sale," he said.

"We sold a commercial office building at 40 Charles St, Berserker, which settled in March and another commercial property at 5-7 Musgrave St which settled in May.

"Leasing enquiries however seem above average at present, maybe because people have more time to search online. I have interstate enquiries for both leasing and buying which are being held back until the boarders open."

Mr Offord said there was a huge demand for investment stock, especially from southern states.

"I believe it's due to the fact that in order for southern buyers to purchase in Sydney or Melbourne they are having to come up with $2-3 million minimum, and this will only see returns of around 5-6 per cent," he said.

 

8 Archer Street now has a fully occupied status for the first time in at least six years.

 

"In the Rockhampton region they can enter the market for under the million-dollar mark and see returns of 7-10 per cent.

"On a property that is currently under contract in Dean Street, I have had over 45 enquiries and had multiple offers before going to contract.

"A lot of these buyers are keen for me to send them on new properties when they come to market but unfortunately it's a matter of not having the stock to sell at the moment."

He said Rockhampton agents have to be positive moving forward.

"With all of the infrastructure projects for the region starting to gain traction, we are seeing a flow on effect with a shortfall in quality office and sheds in the region," he said.

"The retail market is going to be tough but in general I would say that commercially we are in a better position than we were five or six years ago."

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