March 2017 Market Wrap Up

Commercial Market Wrap: Central Coast

Investment Trends, Leased, Sold, New to the Market and Coming Soon.


2017 has hit the ground running with the property market in full swing. Investment sales have remained extremely strong, with 2 very solid results last week.

120-124 Pacific Highway,Tuggerah NSW
ASX listed tenant, major bulky goods location, large population growth

      - SOLD - $5.61 Million

      - Yield - 7.6%
      - 10 year lease to 2024 plus options to 2034.
      - Net Income: $426,889 pa + GST. (approx) 


107-109 Koolang Road, Green Point, NSW 
Highly sought after childcare investment

      - SOLD - $2.405 Million
      - YIELD - 5.61%
      - Long 15 year lease to March 2029, two further 5 year options to March 2039
      - Net income: $134,984 pa (March 2017) (approx.)  

Across the board, stock levels for industrial properties available for sale remain very tight with areas such as Kincumber and Erina not having a single industrial property currently available for sale. Thankfully new stock in Tuggerah should help soak up some of the market demand.

On a negative front, commercial leasing is wearing the brunt of the market, with a lot less activity in this market sector, vacancy rates are expanding. Tuggerah Business Park and Erina continue to see more vacant office suites becoming available with vacancy periods becoming longer. Erina now has in excess of 6,000m2 available for lease, spread over some 65 vacant office suites and retail positions. There appears to be more waiting and possible rental pain on the horizon for these owners as enquiry levels remain very low.


Enquiry for investments and industrial warehousing opportunities remain at the forefront of demand throughout the market.

- Whilst local investors are subjected to consider lower yields than previously considered, the key to investment sales remains the strength of the tenant. The majority of investment enquiry falls between the $300,000 - $1 million mark, mainly generated from the SMSF market. Properties falling within these parameters can expect to achieve a lot of enquiry.

- Industrial factory bays/warehouses remain popular with tradies and small businesses looking to owner occupy and secure their future in a property. West Gosford has experienced some very strong results along these lines and it is safe to say that should there be more units developed throughout Erina, Kincumber, West Gosford, Somersby, Tuggerah and North Wyong, there is enough demand in the marketplace to produce results. The key to development sales will be price. West Gosford has entered unchartered territory with results greater than $2,500/m2 and it will be interesting to see if these numbers can be sustained and repeated in other areas.

- There is a shortage of large industrial warehousing available throughout the Central Coast for sale and for lease. Enquiry for warehousing between 2,000m2 - 6,000m2 has increased within the past 6 months (local businesses expanding as well as a migration from Sydney). An increase in stock levels at the larger end could see some very good growth throughout the coast.
We always appreciate feedback. If you have any questions about the properties featured in this market report or if we can help you with anything in the current market, please feel free to give us a call.  

Raine&Horne Commercial Erina 02 4365 0645


Just Listed
For Sale
Umina Beach
310 west street
Price $1,280,000 + GST if applicable
Property Type Retail
Building/Land Area 233 sqm 331 sqm
Here is a unique opportunity to purchase a commercial property in a premium position in the main street of Umina Beach that is currently tenanted by a News agency. Shop frontage approx 10 meters. Lease expiry 30/9/2019 no option period. Tenant pays all outgoings (except for building insurance). Boasting a corner position, this ground level retail property with glass shopfront is surr...... View Property
For Sale
Price $380,000
Property Type Tourism
Building/Land Area 120 sqm 120 sqm
Business for sale - An opportunity to acquire this popular licensed caf� & catering business with catering rights for one of Central Coast's iconic & frequented Art Galleries. This is a well performing business which is experiencing growth year on year. The current owners have succeeded in building a strong team in place with great leadership. Currently run under management however the bus...... View Property
For Lease
3 / 172 - 176 The Entrance Rd
Price $40,000 per annum + Outgoings + GST
Property Type Retail
Building/Land Area 103 sqm 103 sqm
Position your business in the middle of the action. Erina is one of the hottest addresses for retail and food on the Central Coast. Available now is an outstanding 103m2 (approx) retail position within the Palm Court complex. * Right next door to Pie In The Sky and Subway, so you will be seen by pedestrian and vehicle traffic. * Direct Shopfront and pole sign exposure to The Central Coast Highwa...... View Property
Recently Sold                             




The Entrance




The Entrance


Raine & Horne Commercial Erina 02 4365 0645
Local Knowledge & National Strength
visit us at

Why Raine & Horne Commercial?

Raine & Horne Commercial knows local and regional property markets intimately, with the support and systems of a long-established national and international property group. Our clients benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.