Commercial property market is buzzing
COMMERCIAL property buyers are ahead of the game when it comes to understanding the infrastructure surge on the Sunshine Coast.
An in-rooms auction at Mooloolaba on Thursday evening saw four of the eight properties listed selling on or before the night.
Active bidding took place on the other four properties with negotiations continuing.
All properties are tenanted, an indication of the strength of the commercial market and making them attractive to investors.
"It's a sign of the market,'' CBRE's Brendan Robins said. "When you bring such properties to an auction campaign people will put in offers to try and get it off the market.''
Mr Robins saw a 66sq m beachside cafe tenancy at Coolum sell under the hammer for $1.330m. The property is leased to Raw Energy until 2019 with two five-year renewal options.
A 174sq m ground-floor strata-titled property at 1/18 Second Ave, Cotton Tree, with optometrists as long-standing tenant since 1998 sold prior to auction.
So did a 926sq m waterfront property with freehold title at 5 Pangarinda Pl, Mooloolaba, that has a Healthworks fitness centre on a seven-year lease that started in 2014.
An 873sq m free-standing industrial building at 3 Technology Dve, Warana, also went under contract prior to the auction.
Marketed by Tony Justo and Glen Grimish, the property has three tenants in place.
Mr Grimish said the location was the main attraction, plus the zoning of Specialised Centre.
"The Kawana precinct is tightly held and the zoning means that looking to the future the use could be expanded.''
Mr Grimish said investing in the Sunshine Coast commercial market was on the rise given the increase in infrastructure from Caloundra South to Coolum.
"Owner-occupiers are looking to get positioned in established precincts such as Warana and Caloundra West. But they are finding it very hard to get a footing so they are looking at Bells Reach and Coolum.
"Industrial has been steady. The real buzz is in investment properties.
"Buyers are realising that interest rates at these record lows will not last.
"They are making every endeavour to purchase while they can.
"Astute investors are looking at commercial.''
CBRE's half-yearly review of the Sunshine Coast defines five key projects that are expected to drive employment and dominate commercial and residential development opportunities throughout 2016-2017 and beyond.
The headline developments are Sunshine Coast Public University Hospital, Sunshine Coast Airport expansion, Sunshine Plaza Shopping Centre expansion, Stockland's new $5billion master-planned community, Aura; and SunCentral in the heart of Maroochydore.
The Sunshine Coast's long-term population growth outlook, together with a recovery in Queensland's economic conditions, should provide the basis for renewed activity beyond 2016, the report states.