INVESTORS LOOK TO SUNSHINE COAST FOR STRONGER YIELDS

A new industrial project has been generating interest on the Sunshine Coast, with its comparatively strong yields and cutting-edge design attracting investors pushed out of southern big-city markets.

The Sunshine Coast Business Hub in Caloundra West has attracted inquiries from local and international investors, with three pre-commitments in place just weeks after its launch, said CBRE’s Glen Grimish, who is marketing the project in conjunction with Luxe Commercial’s Chris Sales.

The design of the hub’s 12 planned buildings – consisting of an open-plan warehouse with two mezzanine levels – hasn’t been seen on the Sunshine Coast before, said Mr Grimish, adding that the project would “set a precedent” for future industrial development in the region.

“There is nothing on the Sunshine Coast in this design, it’s a very innovative product that has been tried and tested in other markets but remains quite a sophisticated development for the Sunshine Coast,” he said.

The projects design allows for flexible use by a variety of businesses. Photo: Supplied

Designed by local firm Christopher Design Group, the development incorporates glass front entries and container-height roller-door access.

“(The design) is a workspace concept that has proved popular in other markets such as Sydney and Melbourne and is a readily accepted design style internationally,” Mr Sales said.

The surrounding area of Caloundra West is currently host to a diverse range of businesses ranging from “light industrial to high impact businesses” with a focus on warehouse distribution and wholesalers, said Mr Grimesh.

“It would be potentially suitable for small importers looking for storage and a bit of a call centre set up in the business, or a typical tradie-style business with an office,” he said.

But it is the expected yields on the project – about 6 per cent, according to Mr Grimesh – that has piqued the interest of buyers, with the current pre-commitments having all been made by investors.

“We’ve had very good interest from buyers on the coast (in the past 12 months). There’s been so much activity on the coast at the moment, particularly from the southern markets where the yields have tightened,” he said.

“We’re targeting around 6 per cent yield on this one, which is very strong compared to some metro markets.”

Prices for the Sunshine Coast Business Hub range from $270,000 to just over $400,000, according to CBRE, with construction scheduled to commence early this year.

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