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Industrial Assets in Demand by Kollosche Commercial

March 1 2022

The fast sale of a desirable commercial holding in Burleigh Heads says a lot about the current demand for freehold industrial properties.
Industrial Assets in Demand by Kollosche Commercial

Industrial Assets in Demand by Kollosche Commercial | Kollosche

The fast sale of a desirable commercial holding in Burleigh Heads says a lot about the current demand for freehold industrial properties.

A $2,000,000 cash, unconditional deal has been inked on 1 Cahill Court, Burleigh Heads following an off-market campaign led by Kollosche Commercial.

The 1,219m2* land parcel with a building area of 600m2* sold within 48 hours of being distributed to Kollosche’s database.

A sales analysis on the property reported: a passing net income of $70,000; passing net return of 3.5%; land rate/m2* of $1,640; and building rate/m2 of $3,333/m2* (*measurements are approximate).

The tight compression in freehold industrial yields can be attributed to these key points:

• Industrial Rentals: Currently the market is going through a phase of high rental growth, therefore the low yields being achieved are generally taking into account the potential growth and ability to increase the income through future market reviews or asset repositioning. • Vacant Possession Demand: The high demand for vacant possession industrial properties is driving price growth in this sector. In general, a shortage of freehold sites presents an opportunity not only for a highly competitive selling environment, but also for favourable contract terms for vendors.

The industrial sector is set to see continued growth in 2022. The strong performance of those industries requiring industrial properties will continue to drive demand for industrial properties as the year unfolds.

To best position your industrial asset within the market, consider these strategies:

• Increase the rental via market reviews; • Reposition the asset through capital improvements; • Strengthen the covenants by negotiating higher security through increased bonds, personal guarantees and several other methods which will protect your asset.

If you would like to build your investment portfolio or need assistance with your current commercial asset, please reach out to Kollosche Commercial.

Industry Recognition

Kollosche Commercial’s performance over the past year has been recognised with the team having been named finalists in the prestigious Australian Real Estate Results Awards.

Kollosche is a finalist for Boutique Agency of the Year while Commercial agent Adam Grbcic is among the elite performers contesting Australia Agent of the Year and Queensland Agent of the Year.

We are grateful for the nominations received and the results that place us among the best in the business.

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