Demand for Northern Beaches commercial assets set to drive mega auction results
Media release - 7th October, 2016
The combination of historic low interest rates and the growing appreciation for higher-yielding commercial property assets is to set to ensure some competitive bidding at the Raine & Horne Commercial Northern Beaches Mega Auction to be held on 20 October, 2016.
“Commercial real estate is more in vogue with investors, particularly as the lending gap between borrowing for a residential asset and a commercial property has closed considerably,” said Vincent West, Co-Principal of Raine & Horne Commercial Northern Beaches.
“The Northern Beaches is a tightly-held market and there is no land available to create more industrial or retail property in the region. Any new land is being snapped up for residential development. It’s the lack of new commercial stock that is propping up office, industrial and retail values and keeping vacancy rates in check too.”
A highlight of the mega auction, which will be held in the auction rooms of Raine & Horne Commercial Northern Beaches, at 685 Pittwater Road Dee Why, is the retail investment at 3/21-23 Old Barrenjoey Road, Avalon.
Significantly, the immaculately presented retail shop has a high profile tenant, Witchery, the Australian chain store specialising in women’s, men’s and children’s clothing, shoes and accessories.
The retailer holds a six-year lease with a 2×6-year option, and the annual rent being generated by this rare asset is $132,365 + GST with outgoings paid in full by Witchery.
With a total strata area of 155 square metres plus 1 car space, the Avalon property will be sure to catch the eye of yield-hungry investors, according to Mr West.
“Situated within a well presented modern mixed use development in vibrant Avalon, which is regarded as the Byron Bay of Sydney’s Northern Beaches, the shop presents as an excellent investment to any astute investor,” said Mr West.
Other properties set to go under the hammer at the mega auction include a modern industrial development warehouse at 26/42-46 Wattle Road, Brookvale. With a total strata area of 194 square metres plus 2 car spaces, this property is perfect for all investors and superannuation funds looking to secure a genuine investment in Brookvale’s industrial CBD, according to Mr West.
A prime freestanding building in the heart of Brookvale's trade supply centre, located at 39 Winbourne Road, Brookvale will also go to auction on 20 October. Home to A & B Motorsports Pty Ltd a performance parts supplier catering for Japanese, European and Australian vehicles, the property is generating an annual rent of $68,616 + GST gross.
With a building area of 738 square metres, which includes an 80 square metre showroom/office and 658 square metres of warehouse and storage, this property is certain to attract plenty of bidding.
“Given it is located on busy Winbourne Road, which offers high exposure to passing traffic 7 days a week, there are great signage opportunities for owners too,” said Mr West.
The final property up for grabs is a 62sqm office and shop located 7 and 8/846 Pittwater Road, Dee Why.
“With a net rent $13,300.52 per annum it’s a great time to invest in Dee Why with the revamp of the Town Centre in full swing,” said Mr West.
For more information about the Raine & Horne Commercial Mega Action, which will begin at 6pm on 20 October in rooms at 685 Pittwater Road, contact Vincent West on (02) 9971 9000 or 0403 444 000.
For further media information contact:
Vincent West, Co-Principal, Raine & Horne Commercial Northern Beaches on 0403 444 000
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400