Mackay expert leads national commercial property market seminar
Mackay market faces a shortage of quality industrial premises.
- Yields on commercial property in the Mackay region are as high as 11.0%.
- Mackay’s commercial property market is expected to grow in line with the region’s reputation as a “service hub”.
- Despite a period of adjustment following a quieter resource sector, the Mackay region is facing a shortage of industrial stock.
- Industrial assets are the pick of the local commercial property market at present.
Brisbane, 16 November 2017: Early November saw Mackay’s leading commercial property expert – Des Besanko of Raine & Horne Commercial Mackay, join other leading commercial property experts at Brisbane’s Stamford Plaza, to share their views on commercial property with Ray Hadley, OAM, broadcaster on Radio 4BC Brisbane.
The event, attracted a large media contingent as well as a broad spectrum of commercial property investors from across Queensland.
In reviewing the state of the Mackay market, Des Besanko noted that average yields on industrial property have been around 9.5% rising to 10.5% if a 3-5-year lease is in place. Office property is generating yields of 9.75-11.0%.
In both the industrial and office property markets, there has been good buying activity from owner occupiers, given the recent price adjustments over the last couple of years in combination with low interest rates. Self-managed super funds are active in the sub-$1.5 million market though often seeking yields of 9.0%-plus.
Industrial yields are expected to tighten slightly. Mr Besanko said, “Amid limited stock, we are seeing good investment activity where leasing covenants are stable.”
Several factors are adding impetus to Mackay’s commercial property market. Mr Besanko noted, “Even as primary industries such as cattle and sugar continue to kick along, various mines in the region have changed hands and are being re-opened under smaller, nimbler “boutique”’ operators. These are working alongside the better-known operators of, say, BHP and Glencore. QCoal for instance, recently added a new mine to their portfolio.”
Future growth is further supported by the 21-kilometre Mackay Bypass project – a state and federally funded initiative injecting $700 million into the region.
Despite the period of adjustment required from a quieter resource sector, the region is facing a shortage of industrial stock that provides good access for truck movements, hardstand, and stand-alone shed with cranage.
Mr Besanko observed, “I believe industrial is the pick of the market at present, as it will continue to grow in the area given Mackay’s reputation as a “service hub”.
To download a copy of Raine & Horne Commercial’s latest property market report covering Mackay, and Australia as a whole, visit http://www.imags.com.au/rh_commercial_insights/.
For further media information contact:
Des Besanko, Principal of Raine & Horne Commercial Mackay on 0419 860 129