Most-viewed listings: Industrial soars amid major lift in commercial property interest
Clear trends are emerging in the commercial property market as the coronavirus pandemic takes the industry into uncharted waters.
Industrial listings have skyrocketed amid increased demand for warehouse assets, with an industrial property the most-viewed listing of the week in four of Australia’s eight states and territories.
Of the 80 properties listed across the states’ combined weekly top 10s on Realcommercial, 27 were industrial assets, while medical/consulting listings are also increasingly in demand
Importantly, commercial property views nationally have risen dramatically in the past three weeks as buyers and investors return to the market.
“It’s the same as what we’ve seen in residential search. Once the stimulus measures were announced it’s jumped back up,” REA Group chief economist Nerida Conisbee says.
“With low numbers of coronavirus cases I think it’s given people more confidence that this will be over soon enough and we can try to get back to business.”
“With interest rates so low, there’s no shortage of money available right now.”
With property sentiment on the improve, here is the commercial property making the strongest waves in your state.
NSW – NORTH RYDE SHOPS BACK ON TOP
Interest in the future Lachlan’s Square Shopping Centre just keeps on coming, with the North Ryde property the most-viewed property in the country last week.
Having being toppled from the number one spot in New South Wales last week, the leasing listing bounced back as the soon-to-be-opened centre in Sydney’s west continues to defy retail predictions as tenants seek space in major population growth zones
The owners were initially seeking tenants for 17 specialty retail spaces ranging from 30sqm to 500sqm, with the property to be anchored by a Coles supermarket and opening later this year.
Conisbee says the retail leasing sector continues to see strong interest, with another solid representation among the week’s most-viewed properties, and particularly in NSW.
VIC – TENANT INCLUDED IN COLLINGWOOD WAREHOUSE CONVERSION
It might be listed as an industrial warehouse, but this property at Collingwood in Melbourne’s inner city has been reborn as a stunning open office space.
The 170sqm studio plus mezzanine level is home to Fiona Lynch Interior Design on a month-to-month lease, but can be purchased with vacant possession.
A glass entry opens into a large function room, while an adjacent door provides access to the studio workshop or showroom. At the back is a large main office with exposed beams and suspended lighting, separate kitchenette, storage room and bathroom, and there is also a car space on title.
Currently returning more than $41,000 per annum, agents say the market rent for the property should be closer to $60,000, immediately lifting its earning potential.
Conisbee says industrial properties are among the best-performing across the industry in the current climate.
“It’s the sector that seems to be holding up the best. We’ve seen few signs of distress,” she says.
“Leasing demand is remaining solid in comparison to other sectors. Fundamentally we’ll require more of it (industrial) in the long-term.”
“Of all the sectors I think that’s the one that will come out of this the most unscathed.”
QLD – TENANTS QUEUE UP FOR NEW REDLYNCH SPACES
Adding further credence to the emergence of the retail leasing market as one of the country’s most resilient segments, a soon-to-be-completed complex at Redlynch, near Cairns raced to the top of Queensland’s weekly rankings.
Pictures with a KFC restaurant as part of the precinct, and with an anticipated completion date of June 30, Redlynch Central will feature 2500sqm of combined floor space over two levels of retail, office and medical businesses.
Sitting between Redlynch Indoor Sports Centre and McDonald’s, the property is close to seven schools and has 25,000 people living within a 6km radius.
With “generous landlord incentives” on offer, applications are being sought through Jay Beattie of Colliers International Cairns.
SA – BLACKWOOD CAFE READY TO RUN
Could you be the operator to take this Blackwood cafe forward?
Already fitted out as an eatery after the departure of the property’s long-time previous tenant, the former Artisan Cafe enjoys a strong position on Blackwood’s main road.
With 92.3sqm of space and many improvements already installed, as well as strong street frontage, it’s ‘ready to go’ offering saw it climb to number one among South Australia’s listings on Realcommercial.
The property is available for lease at only $28,243 plus GST and outgoings per annum.
WA – DENTAL CLINIC A BIG HIT
You had to be quick if you wanted this fully leased dental clinic in Subiaco.
The property is already under contract, such is the heated interest is saw during the early stages of its campaign as it captured the most views on Realcommercial of any West Australian property last week.
Strongly leased to industry heavyweight Bupa Dental, the stunning corner property sits on 973sqm of land and is leased at $155,000 per annum on a 10-year agreement with two five year options.
TAS – CHEAP ENTRY INTO HOT INDUSTRIAL MARKET
Buyers are circling industrial assets in droves, and this affordable property is at the forefront of that momentum in North Hobart.
With a price tag of just $400,000 and a tenant already in place, the property just off Brooker Highway sits within a light industry precinct and features a combination of office and storage space.
Marketed as an ideal entry-level investment, it occupies a 267sqm site and is for sale through Devine Property.
You won’t be able to move in for almost a year, but that hasn’t prevented potential tenants for one of Canberra’s most impressive new office buildings from eyeing off the top floor.
Level 5 of the London Circuit building, in the heart of the city, is available to pre-lease, with 2091sqm of floorspace and views to match.
Expected to be available in the first quarter of 2021, tenancies in the building include the promise of landlord-curated social programs and flexible floor plates with the potential for subdivision.