Kollosche Commercial May Market Wrap
June 7 2023
Sales activity ramped up for Kollosche Commercial during May with certain asset classes performing well in the current climate.
In this short three-minute video, Kollosche Commercial sales specialist Adam Grbcic shares key sales for the month and offers his observations on buyer behaviour.
In his market analysis, Adam notes strong demand for well-positioned ‘set and forget’ assets that possess long-term leases and strong covenants.
Kollosche Commercial sold Lot 4/47 Watts Drive, Varsity Lakes for $1,900,000. Tenanted to the Commonwealth Government on a five-year lease, this property transacted at a yield representing 5.9 per cent.
The appetite for repositioning opportunities has also been strong, with investors seeking assets with the potential to increase rental and add capital improvements.
The high-profile Flannery’s building, occupying two titles in Miami, sold for $4,800,000 after only 10 days online. The sale price represents a land rate of $4,000 per sqm. The interest in this site was fuelled by the upside created by the Gold Coast Light Rail route, which will see properties in this area rezoned for future redevelopment.
Kollosche Commercial’s Team Grbcic also closed a $2,235,000 deal on 22-28 Davenport Street, Southport. The sale price represents a 7 per cent return based on a fully rented income, or close to 6.5 per cent on a passing income.
A-Grade Developer Sites in Demand
The developer site market was also active during May, with attention concentrated on A-Grade sites close to the ocean that offer uninterrupted views.
Enquiry has tapered off for sites that are set back from the ocean. However, this situation may change as the Government introduces more incentives for build-to-rent programs to address the housing crisis.
Kollosche Commercial sales agent Mark Stafford sold 1 Naves Drive, Coomera for an undisclosed price. A print and digital campaign on the 11,180m2* site with mixed-use DA approval netted 94 enquiries and six written offers.
Kollosche Commercial is working with owners to offer guidance on repositioning their assets to future-proof income by ensuring tenants remain viable long-term.
If there’s anything the Kollosche Commercial team can do to help you this month, please reach out for a conversation.