Rocky's next multi-million-dollar commercial property sale
LEADING agents are keeping an eye on what will be the biggest retail property sale in Rockhampton for more than a year.
The prime highway site at 54 Yaamba Rd is speculated to be under contract.
The sale is being eagerly awaited by property valuation and advisory group Herron Todd White.
Property valuer Kym Desjardines said the new Bunnings site would appeal to interstate buyers.
"Our interstate investors are active in this market and they are looking towards properties with national tenants on long-term leases,” Ms Desjardines said.
The ex-Masters site is neighboured by three tenants - Freddy's Fishing and Outdoors, Autobarn and Petstock - and has one vacancy.
The reported passing net income is about $2.6million per annum and the property has a weighted average lease expiry of 7.38 years.
The property was last sold for more than $37.5million in 2017.
The sale of 54 Yaamba Rd would boost the slowly recovering retail property market and follow the trend set by bulky goods retail operators along Yaamba Road and withinthe Red Hill centre, according to Herron Todd White's Month in Review report for August.
Vacancies are slowly "drying up” for bulky goods retail operators, according the report.
The report noted rental affordability was still critical in order to attract tenants in these areas, and retain them, and Herron Todd White understands "some pretty substantial incentives have been provided in some instances in order to secure tenants”.
While there have been no major sales in Rockhampton's retail sector for almost a year, the new Bunnings site, with a 12-year lease, is a major opportunity for investors.
The report shows more retail development could be on the horizon for Rockhampton, with the stabilising market a promising sign.
The last major sales in Rockhampton were the former Bunnings site for $9million and part of the Red Hill Homemaker centre, which sold for $38million.
The report noted there were still no confirmed plans for the former Bunnings site despite the new owner taking control.
Allenstown Square was another point of interest mentioned in the report, with the owners securing a number of properties surrounding the centre.
Rental vacancies for retail properties were classified as steady and the stage of the property cycle was said to be ranked as steady growth.