08/11/2024

McGees Wrap Up 8th of November 2024

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This week’s Queensland commercial property transactions reveal strong investor interest across office and industrial sectors. High-value acquisitions in the CBD and suburban areas show continued demand for well-leased, income-generating assets, particularly those with established tenants. Strategic sites in Brisbane’s western corridor saw impressive gains in the industrial market, reinforcing the area’s appeal for logistics and supply chain operations. These transactions highlight the resilience and attractiveness of Queensland’s commercial property market amidst economic shifts.

Office Transactions

Underwood, QLD

Property: Four adjoining commercial strata lots (3105 to 3108), Portal Office Park, 2994 Logan Road

Buyer: Interstate investor

Price: $3.5 million

Details: These 699 square metres are fully leased to Uniting Care Queensland, a tenant with a 15-year history at the property and a lease extending another five years with options. The property sold at a yield of 7.99%, making it an attractive investment with steady income and long-term tenant security. This sale highlights ongoing interest in stable assets, especially those with government-backed tenants, amid a market where reliable office investments remain scarce.

Chermside, QLD

Property: Office unit, 80 square metres, 2/598 Rode Road

Tenant: DC Construction Services

Lease Term: Three years

Rent: $28,000 net per annum plus GST and outgoings

Commentary: This smaller office lease shows the steady demand for flexible office spaces in suburban areas like Chermside, where businesses benefit from lower rents compared to the CBD. Smaller spaces like this also cater to firms adapting to hybrid working models while maintaining a professional presence.

Brisbane CBD

Property: 27-storey office tower, 145 Ann Street

Buyer: Aware Super (in advanced talks)

Expected Price: Approximately $200 million

Details: Aware Super’s pending acquisition of this A-grade tower marks the first major CBD office purchase by a super fund in Brisbane in nearly five years, signalling renewed institutional interest in Brisbane’s office market. The sale, reflecting a near 8% decline from its recent valuation, underlines the market’s price adjustment phase. This move by Aware Super may also suggest a belief in the long-term resilience of premium CBD assets.

Holland Park, QLD

Property: Two-level office building, 930 Logan Road

Buyer: Investor

Price: $3.05 million

Details: With 400 square metres leased to Ray White on a new five-year lease, this investment achieved a yield of 5.9%. Situated in Brisbane’s southern suburbs, this property demonstrates investor appetite for stable, suburban office assets leased to established businesses. The yield and tenant history provide appealing risk-adjusted returns for long-term holders in a cautious office market.

Industrial Transactions

Bowen Hills, QLD

Property: Warehouse and office, 307 square metres, 5/100 Campbell Street

Tenant: Allo Creative

Lease Term: Three years with an option

Rent: $76,000 gross per annum

Commentary: This lease in Brisbane’s inner north highlights the demand for mixed-use industrial and office spaces within proximity to the CBD. Smaller industrial spaces are particularly valuable for creative and tech businesses that require flexible environments near urban centres, blending accessibility with affordability.

Brisbane Airport, QLD

Property: Office space, 313 square metres, B3/2 Leonardo Drive

Tenant: Alstef Australia

Lease Term: 12 months

Rent: $80,000 net plus outgoings and GST

Commentary: Brisbane Airport’s industrial precinct continues to attract short- to medium-term tenants seeking logistical convenience and flexibility. Properties like this one offer strategic positioning, especially for tenants with distribution or supply chain requirements that benefit from proximity to the airport.

Richlands, QLD

Property: 3.13-hectare industrial site, leased to Grays E Commerce Group Ltd

Seller: Centuria Capital

Price: $26.75 million

Details: Situated within Brisbane’s high-demand western corridor, this 13,763-square-metre site saw considerable value growth, selling for nearly $11 million above its 2018 purchase price. The area has benefited from rental growth and low vacancy, making such strategic holdings attractive. Centuria’s sale showcases the demand for well-located industrial sites, especially as businesses increasingly look for properties that support robust logistics infrastructure.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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