'Cheap' Tweed interest grows
INVESTORS are beginning to turn their attention to cheap commercial spaces in Tweed Heads, a local agent has said.
Leonie Smith, commercial agency director for Colliers International Gold Coast, said she had noticed a spike in interest for leased commercial and retails assets under $700,000 in northern New South Wales over the past two months.
“Commercial investors are starting to spend, albeit on smaller investments, and in recent weeks in particular we have noticed a surge in enquiry for leased office and retail strata spaces,” Ms Smith said. “We believe we are also beginning to see investors once again spending on commercial assets.”
Ms Smith said Wharf Central, the first new commercial building in the Tweed for more than 10 years, was just one example.
“While smaller investors often feel nervous about investing in new commercial product, Wharf Central has been appealing because of the scarcity of quality office space and relatively low occupancy rates in the Tweed, which have allowed solid long term tenants to be secured.”
Ms Smith said she recently sold an 84sqm office on level two of the $18.5 million commercial building for $384,000, which represents $4571/sqm and a yield of seven per cent.
“The buyer was a local businessman who purchased through his superfund,” Mr Smith said.
“He was keen to snap up this office as a new three year lease, with options, had just been signed for the premise by a group of psychologists and health care professionals.”
The four-storey Wharf Central building was developed by Masada Investments.
More than 70 per cent has now been sold or leased.