Assets are tightly held in Redlands Business Park, which has seen some pent-up demand mainly driven by local investors securing passive income investments. Low interest finance options and anticipated future growth is prompting owner-occupiers to purchase.
Average initial yields currently range between 6.5% to 7.5%, with low vacancy expected to maintain yields and rental rates in this market. As an emerging market, Redland Bay has capacity to expand in line with forecast population growth. As the community grows, the need for additional goods and services will lead to higher property demand by buyers and tenants resulting in potential capital growth as supply is absorbed.
The quality industrial buildings located in Redlands Business Park continue to command high average net face rents based on age and condition as tenants want to be centrally located to Brisbane City and Gold Coast markets. The outlook for potential future growth continues to motivate Private Investors to secure industrial accommodation with average initial yields ranging from 7.5% to 8.5%. In comparison, high rental rates are pushing owner-occupiers into the market, with half of industrial assets sold to this group.
Existing supply of built form buildings is limited in Redland Bay which has kept values buoyed. Future supply will be able to cater to increasing demand as population grows in the region.
Since June 2019 a total of 2,118sqm* NLA has been leased at Redlands Business Park. Additionally, four buildings have been sold with a combined value of $2.35million. With an average annual rental per sqm of $175, the current vacancy rate at the business park stands at only 11%.
|Tenancies leased since June 2019||11|
|Total floor areas leased||2,118 sqm*|
|Rental rate per sqm (per annum)||$175|
|Average rental yield||7.65%|
|No. of properties sold since June 2019||4|
|Total floor areas sold||1,032 sqm*|
|Average rate per sqm||$2,286|
|Current available vacancies||5|
|Current available land lots||8|
Please contact agents below to know more about the currently available opportunities at Redlands Business Park.
Nathan Moore – 0413 879 428
Jonathon Burrowes – 0421 383 668