The Gold Coast Bulletin

High leasing rates attract investors

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INVESTORS are targeting industrial pockets outside of major hubs in an effort to buy high-yielding assets.

A recent example includes the purchase of two units at 19 and 20/2-10 Kohl St, which sold to a Gold Coast investor for $295,000 and $380,000 respective­ly at a 7 per cent yield.

The units are leased to race car mechanic Williams Race Services, which has a monthto-month leasing arrangemen­t.

Unit 19 was sold by WRS Nominees Pty Ltd, which picked up the 150sq m unit for $215,455 in 2012, while unit 20 was offloaded by Sally Williams, who bought the 194sq m property for $420,000 in 2007.

Cushman & Wakefield’s Luke Smith, who marketed unit 20, said the buyer of both units wanted to look at Upper Coomera because he was seeing high rental rates in the area.

Mr Smith said leasing rates in Upper Coomera ranged between $140sq m and $160sq m net annual rent while units in Helensvale and Ormeau were achieving rates significan­tly lower at between $110 and $120.

That had helped fuel a high square metre sale rate at $1950-$2050sq m compared to $1600 to $1800sq m for Helensvale and Ormeau.

“The demand is still there even though prices are high,” Mr Smith said.

“Demand has not kept pace with supply. Purchasing strata units in Upper Coomera throughout the year has been difficult as the percentage on the market remains low.”

Shane Airey, of Airey Industrial, marketed unit 19. CONNECTIVI­TY SOCIALLY CONSCIOUS WORK LIFESTYLE

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 ??  ?? Luke Smith, of Cushman & Wakefield, has sold a unit at 2-10 Kohl St, Upper Coomera
Luke Smith, of Cushman & Wakefield, has sold a unit at 2-10 Kohl St, Upper Coomera
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