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A slew of recent sales in Caloundra’s industrial market have highlighted the strong appetite for investment as well as owner-occupier opportunities on the Sunshine Coast.
Five recent sales totalling $16 million transacted by CBRE’s Jack McCormack and Matt Marenko have caused the duo to impress on prospective sellers the perfect market opportunity that exists at this moment.
Mr McCormack noted that a number of the five recent sales had been long-held properties, and that others might do well to consider striking while the iron is hot.
“Many of the assets have stayed in the hands of one owner for over a decade, when they were approached with the prospect of capitalising on buyer demand, many weren’t aware of the significant capital growth the properties received within the last two years,” Mr McCormack said.
“Despite a fair amount of negative commentary in the marketplace, we’re still seeing demand for quality assets throughout the Sunshine Coast,” he added.
Mr Marenko agreed that buyer demand seemed to be alive and well in the coastal commercial market.
“We received an excess of 500 enquires over the five campaigns, with the bulk coming from interstate investors, underpinning the appetite for Sunshine Coast assets which could potentially have a direct correlation with interstate migration to the Sunshine Coast.”
The most recent transaction of 16 Industrial Avenue Caloundra West for $1.53 million represents a 5.88 per cent yield, meanwhile, 15 Industrial Avenue sold for 2.52 million, representing a yield of 7.13 per cent.
Other sales in the suburb include 17 Industrial Avenue, 22 Enterprise Street, and 16 Enterprise Street.
But while demand for commercial space has been high across the market in the Queensland coastal location, a soon-to-be completed project might loosen things up, particularly for those seeking industrial assets.
The Sunshine Coast Industrial Park, which sits just 3 kilometres off the Bruce Highway in Caloundra is currently in phase two of construction, with lots expected to be released onto the market in late 2023. The project is currently supporting roughly 100 jobs during construction and will play host to approximately 1,390 ongoing jobs after the new companies have moved in.
Just over 40 lots are expected to be offered when the new assets hit the market, though that likely will not be enough to keep up with demand. As David C Smith, the sales and leasing director for Raine & Horne’s commercial outfit recently noted, the regional location is continuing to see an influx of new residents, who are bringing their businesses and appetite for commerce with them.
“We had 44,000 people move to the Sunshine Coast over the last year, and the local population is set to reach 500,000 by 2031, and the issue is we don’t have enough commercial property stock to keep up with demand,” he said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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