Current robust auction sales activity in Toowoomba underscores the assertion the town's commercial markets are enjoying consistent demand from qualified buyers seeking quality, competitively-priced property.
Property that is overpriced or sub-grade is increasingly harder to sell or lease, says Nick Koenig, Commercial / Industrial Sales & Leasing specialist at Raine & Horne Commercial Toowoomba.
A few infrastructure projects are driving the Toowoomba market including the $200 million Yarranlea Solar Farm, and the $160 million Interlink SQ project connecting Toowoomba to the Port of Brisbane. Besides, the Toowoomba Second Range Crossing will be completed by mid-2019.
Key sales achieved by our Toowoomba team include the under-the-hammer auction sale of the Honda and Yamaha dealership at 21 Hospital Road Dalby for $685,000. At the same onsite auction in Brisbane co-hosted by our Toowoomba, Brisbane North and Brisbane Southside offices, a retirement village at 68 Hypatia Street Chinchilla is now under contract” after the auction for $1.6 million less liabilities. The A grade property consists of 10 buildings including seven duplexes, two triplexes, and a community hall.
Nick says finance options have become more limited in the last six months, and increasingly those with preapproved finance or cash buyers are best place to secure a commercial property. On the flipside, the more stringent finance environment has encouraged a spike in leasing enquiries.
Amid a tightening in bank lending criteria, Nick sees more interest from lessees and business owners however they are typically being selective and looking for competitive rental rates and landlord incentives. He explains, “A couple of new leases transacted by this office have seen landlord incentives to the value of two years’ rent on six- and seven-year lease terms. These landlords have been extremely motivated and are banking on the tenant renewing for a second term when the time comes.”
He adds, “Cashed up investors are still active in the market for quality, tenanted investments. I have seen particularly strong interest from traditional metropolitan buyers for regional investments as the yield is often 10.0% or better. These types of properties are becoming harder to source as the pool of stock dries up.”
Amid a tightening in bank lending criteria, Nick sees more interest from lessees and business owners however they are typically being selective and looking for competitive rental rates and landlord incentives. He explains, “A couple of recent leases transacted by the Toowoomba office have seen landlord incentives to the value of two years’ rent on six- and seven-year lease terms. These landlords have been extremely motivated and are banking on the tenant renewing for a second term when the time comes.”
If you’re interested in buying or leasing commercial space in Toowoomba, contact Raine & Horne Commercial Toowoomba on 07 4638 5222.
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