Burleigh goes boom
Investors piling into commercial offerings
DEMAND is soaring for commercial space in Burleigh Heads off the back of investor appetite for beachside income-producing assets.
In the past three months McDonald House, on the corner of Park Ave and Connor St, sold for $8.3 million, and 15 James St sold for $4.24 million.
Popular food outlet Justin Lane, located at 1708-1710 Gold Coast Highway, recently signed a long-term lease at $900sq m – up from $650sq m from its last leasing arrangement.
Rents range between $800sq m and $1450sq m, with James and Connor St securing the higher range and Gold Coast Highway and Park Ave leasing at the lower end. Global surf retailer Rip Curl this year moved into 17 Connor St.
Colliers International’s Daniel Cullinane said the commercial precinct was a prime target for Sydney and Melbourne investors.
“The level of inquiry for Burleigh is not like anything I have ever seen before,” he said.
“There are people calling me from Sydney and Melbourne who cannot find a home for their capital and have identified Burleigh Heads as the ideal investment destination.
“Recent sales certainly reinforce the strength of the demand in the tightly-held precinct.”
Mr Cullinane said the emergence of retailers such as Rip Curl was another positive sign for the market.
“It shows the area has come on the radar of national retailers in conjunction with the existing smaller boutique outlets,” he said.
“This increase in demand has resulted in a lift in the achievable rental rates for landlords. We are seeing rental rates of between $800 and $1450sq m consistently throughout the precinct for ground floor retail.”