McGees Wrap Up 28th of February 2025

This week saw robust activity across Queensland’s commercial property market, with notable transactions in retail, industrial, office, hotel, and development sectors. Investors demonstrated strong interest in heritage assets, large-scale industrial estates, strategic office buildings, and development opportunities, particularly in key growth corridors.

Retail

• 498 Waterworks Road, Ashgrove, QLD

• Sold for $4.1 million

• A local couple acquired this two-storey Art-Deco building, built in 1937. The fully-leased property hosts Giant Ashgrove (cycle shop), Our Sun Room (fashion and homewares), and Corn Street Cafe. The sale achieved a passing yield of 4.83%, highlighting investor demand for freestanding commercial assets in Brisbane’s city fringe.

• 1-2/668 Gympie Road, Lawnton, QLD

• Leased for $286,740 gross per year plus GST

• Salvos Stores signed a seven-year lease at this newly-built large format retail centre, relocating from a nearby site.

Industrial

• 14 Dixon Street, Yatala, QLD

• Sold for $102.5 million

• KM Property Fund and PGIM Real Estate expanded their industrial portfolio by purchasing a logistics estate comprising four warehouses with a gross lettable area of 43,572 sqm. The fully-leased property offers significant reversionary upside with a weighted average lease expiry of 4.7 years.

Office

• Building 12, 2 Flinders Parade, North Lakes, QLD

• Sold for $8 million

• OKG Property Holdings acquired this fully-tenanted office building in the Lakes Vista Office Park. The property spans 1,382 sqm with 46 basement car parks, delivering a 7.19% yield. The site attracted strong investor interest due to its rental growth potential and limited office supply in the area.

• 7 Station Road & 9 Station Road, Logan Central, QLD

• Sold for $5.5 million

• A private investor from NSW acquired these government-leased office buildings, achieving an 8.1% yield. The assets benefit from strong redevelopment potential and a solid holding income from social services tenants.

Development

• 930 Tamborine Oxenford Road, Wongawallan, QLD

• Sold for approximately $3.9 million

• The 4.12-hectare property, home to Bamboo Down Under, includes over $1 million in infrastructure upgrades. The site offers a triple net lease through to 2048, providing a net income of $314,700 per annum plus GST.

• 35 Garden Street & 15 Young Street, Southport, QLD

• Sold for $15.5 million

• This iconic development site in Southport’s Chinatown precinct offers a proposed two-tower mixed-use project. The 4,440 sqm site benefits from unrestricted height allowances and proximity to key infrastructure, including light rail and shopping centres.

The week ending 28 February 2025 highlighted continued investor confidence in Queensland’s commercial property market. Strong interest in heritage retail assets, large-scale industrial estates, and strategic office investments underscored the market’s resilience. Development opportunities in growth precincts such as Southport and Wongawallan demonstrate investor appetite for assets with long-term potential. With limited supply and strong demand, the market is well-positioned for continued momentum throughout 2025.

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

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