ray white commercial know_how | edition 3

Ray White Commercial_Know HowE D I T I O N 3 | S U N S H I N E C O A S T & M O R E T O N B AY R E G I O N

According to the Sunshine Coast Business Survey and Westpac Pulse Survey conducted late last year, the Sunshine Coast has the highest level of business confidence of any region in Queensland with 56 per cent of businesses expecting an increase in profitability over 2015.

The Council’s regional economic development strategy is concertedly focused on attracting overseas investment to the Sunshine Coast and to date, Mayor Mark Jamieson has secured a signed memorandum of understanding from the Hong Kong Real Property Federation which heralds the end of a months-long process since members visited last November, and the opening of new investment channels and opportunities for business expansion. Additionally, the Council is proactively offering financial assistance for local, non-for-profit businesses in an effort to boost this sector.

An injection of $100 million from Youi to build and establish their global headquarters in Sippy Downs will boost the local economy with a range of construction and building tenders, as well as offering career options for those graduating from neighbouring University of the Sunshine Coast.

New interest from national retail franchises, who to date have yet to invest in the region, are set to tap into the market as part of their national expansion strategy. The new Bli Bli Village Centre development and Moko are on track for completion the latter part of 2016 and, as a result of the residential-heavy demographics, businesses who take up tenancies are well-positioned to take advantage of this.

Nambour is also enjoying a resurgence, inspired by the rejuvenation of Maroochydore, and plenty of new start-up businesses from returnees are boosting the economy with boutique, vintage, artisan and bespoke products, as well as the Arts. Frequent and positive media coverage along with social media influencers are contributing to an increase in retail activity, which is set to continue.

All of this points to renewed confidence in the market and the Northern corridor from North Lakes to Caloundra is abuzz with investment opportunities making it a very exciting time for business, and for commercial real estate.

Michael Shadforth Managing Director | President of CCIQ Sunshine

Publishers Ray White Commercial North Coast Central

Editor Louise Hickey

Contributors Michael Shadforth, Ashley Rees, Damien Poole, Drew Westbrook, Emily Pendleton, Chris Massie, Aaron Canavan, David C Smith, Jason Wright, Sarah Pamenter, Anna Grant, Kate Wells, Shayna Stickler, Jennifer Swaine

photographer Emma Nevison

Design Emma O’Reilly

Printers jpg Design & Print

Distribution Sunshine Coast and Moreton Bay region 5,000+ hand delivered directly to businesses 6,500+ electronically distributed Online www.issuu.com

Contact Details Level 1, 77 The Esplanade PO Box 840, Mooloolaba Q4557 T 1300 25 50 75 F 07 5430 3799 W raywhitecommercialnorthcoastcentral.com

Disclaimer: Subject to any statutory limitations on its ability to do so, Ray White Commercial North Coast Central disclaims liability under any cause of action including negligence for any loss arising from reliance upon this document. Articles are intended as a source of general information only and no reader should act on any matter without first obtaining professional advice.

2 Introduction3 In the Market - Investments4 Sale | Lease5 Sale | Lease6 In the Market - Retail7 Lease8 Sale | Lease9 In the Market - Office10 Auction | Lease11 Lease12 Sale | Lease13 Special Feature Wedge Island14 Lease15 Sale | Lease16 In the Market Industrial17 Success Stories18 Why Engage a Property Manager?19 Learn a New Language - Bank Speak20 North Coast Central

INTRODUCTION

In the Market InvestmentsIt could arguably be said, today’s economic climate is fostering the best selling market since the pre-GFC environment of 2007. With the RBA’s record low interest rates, the race is on for investors to secure a return on their money, both on a local and national level.

Investment fund managers, as well as self managed super funds, are stimulating the commercial real estate market with a renewed vigour as term deposit money is diverted into property for a greater long term return. There has been a spike in the level of activity and enquiries for investment opportunities across the North Coast Central corridor from metro markets, evidencing the tight yield on available properties nationwide.

A Grade stock with secure long term tenancies are in very high demand across both the Sunshine Coast and Moreton Bay region. B Grade stock has seen little change in activity on the market as the investors new to property are generally risk averse and are happy to pay a premium for ‘known’ national tenants. For the astute investor willing to take a ‘hands on’ approach and withstand some risk, there are plenty of opportunities to invest in property which will return great future dividends as the regions develop and grow.

Council’s focused drive on attracting overseas investors to the Sunshine Coast region forms part of its Regional Economic Development Strategy deployment, and Mayor Mark Jamieson recently travelled overseas on a two week trade mission to Hong Kong, Frankfurt and London. Demand for commercial real estate will naturally surge and the region will reap the rewards as international businesses recognise the value and sense in investing in the region. Already activity is palpable and we have recently seen a British-based investor purchase the last full length waterfront facing development site on the Coast.

Identifying a new trend, we’ve had an increasingly large number of requests for ‘sell and stay’ packaging options. Perhaps it’s indicative of medium-term planning for current owner-occupiers in the 54-65 years demographic as part of their retirement plan, or maybe it’s reflective of current sales, we’re consulting more and more owner occupiers looking to sell an existing property yet remain on as a tenant, with an advantageous structure and attractive lease options. When structured correctly, we have seen this result in a tenanted sale up to 20% higher than vacant expectation.

Sale | Lease OFFICE | RETAIL

Ray White Commercial North Coast Central

Maroochydore Tenancy 4, 1 Norval Court Sale and LeaseDavid C Smith 0412 712 680raywhitecommercial.comProperty ID 1301323

Showroom / Retail - For Sale and Lease

• Great opportunity just off busy Maud Street in the heart of the Maroochydore CBD• The unit has 2 glass partitioned offi ces, kitchenette, toilet and air conditioning plus 8 car spaces • Approx. 400m2 of showroom / bulky goods / light industrial is available

Sale & Lease Retail


Modern Three Level DevelopmentMaroochydore ‘Corporate Centre’ 13 Norval Court• Areas from 41m2 - 244m2

• Approved for offi ces, specialists and allied health

• Undercover parking

• Close to Maroochydore CBD

• Modern design with quality fi nishes

• Two electric lifts

Sale and LeaseDavid C Smith 0412 712 680

raywhitecommercial.com | Property ID 1201924

Sale and Lease Offi ce


One Strata Two TenantsKunda Park Unit 6, 40 Kerryl Street• Only cafe in Kunda Park Central

• Commonwealth Government tenant

• 6a tenancy, ground fl oor approx. 95m2 and mezzanine approx. 92m2

• 6b tenancy, 86m2

• Lease terms both expire June 2016 with 3 x 3 year options

SaleDavid C Smith 0412 712 680


Sale Retail

Multi award winner David C Smith has earned a reputation as one of the Sunshine Coast’s leading brokers. His negotiation and interpersonal skills are demonstrated by the volume of transactions he has completed over the past 30 years for local businesses, State and Commonwealth Departments, as well as major developers.

T 1300 25 50 75 M 0412 712 680 E [email protected]

David c Smith

Sale | Lease OFFICE | RETAIL


Maroochydore Units 6 & 7, 110 Sixth AvenueSaleEmily Pendleton 0402 435 446raywhitecommercial.com | Property ID 978194

Tenant Investment - 9% Yield

• Tenanted investment presenting a 9% yield• Two ground fl oor strata titled lots• Total fl oor area of 405m2

• Current lease is on a 3 x 3 x 3 year• Lot 6 is 383m2 ground fl oor strata premises and is currently leased until January 2018

Sale Retail


Yandina 5 Conn Street LeaseDavid C. Smith 0412 712 680raywhitecommercial.com | Property ID 1283353

Offi ce/Retail Space Ideal for Medical/Allied Health Premises

• Corner tenancy has just been leased!• Three remaining retail/offi ce tenancies (approx 50m2 each)• Currently confi gured as one larger tenancy (approx 150m2 in total)• Close to train station, easy access and plenty of parking at rear

Lease Offi ce | Retail

Australia’s most Googled real estate brand.

In the Market RETAILIn what can be attributed to affordability thanks to the Reserve Bank Australia’s low interest rates, the past number of months have seen an increase in the level of enquiries on retail properties across the region.

There has been no further marked difference in availability across the Ocean Street or Maroochydore CBD area, with much of the A Grade space available already leased by the food and beverage industry. The Big Top is successfully underway with limited spaces available. Mooloolaba Esplanade has seen higher occupation rates than in recent times with First Avenue reaping a steady stream of enquiries for businesses looking to capitalise on the proximity of the Strip.

With the River Markets Shopping Centre fully leased and already trading well above expectations, Bli Bli Village Centre is well-positioned to align with its success. The three-staged, multi-level commercial precinct will include a mix of retail shops, restaurants and cafes, as well as professional suite and speciality services, and is located adjacent to the Bli Bli Supa IGA. Its appeal lies in the success of neighbouring Bli Bli commercial precincts, and its closeness to the Maroochydore CBD.

One region enjoying a surge in interest is Nambour, an area with relatively low leasing rates and an average sales rate of $200 per m2. Following the lead of Maroochydore’s Ocean Street and the concerted efforts by business owners to freshen up a tired precinct, Nambour town is enjoying its own renaissance. Natives who once lived in the metropolises are returning to their roots to set up home, and importantly open businesses and are bringing with them an edgy and urban footprint and creating a new atmosphere and feel to the once-tired town.

Niche retailers with a focus on all products and services retro, vintage and rockabilly sit comfortably alongside the mainstream retailers like Coles, Woolworths and Aldi. Live music and entertainment venues, Bison, Nook & Cranny and the Art House at the Civic Centre are experiencing an increase in patronage, with the Commercial Hotel under new ownership and enjoying a refurbishment.

Morayfield continues to see low vacancy of quality stock. A continuance in national retailers showing interest in coming to town is indicative Morayfield is increasingly meeting the demographics and psychographics required by the nationals.

Lease Retail


Bli Bli 304-312 David Low Way Lease

Emily Pendleton 0402 435 446raywhitecommercial.com | Property ID 1308576

Bli Bli Village Centre

• Three-staged, multi-level commercial precinct including a mix of professional suites, retail shops, restaurants, cafes and specialty services.

• Basement level car parking accommodates up to 174 vehicles.• Ideal for a range of tenancies covering Medical/Retail/Offi ce and Professional. • Located adjacent to the hugely successful Bli Bli Supa IGA and River Markets shopping precinct

Emily Pendleton

Emily Pendleton is a retail specialist with The Big Top, River Markets and Moko just a few of the developments she has been involved in marketing and leasing. Emily has a Cert IV in Mortgage Broking and Insurance, Diploma in Financial and Mortgage Broking and traineeship in Insurance Broking Management. She is currently studying for a BA degree in Property Economics and Development at the University of the Sunshine Coast.


Lease RETAIL


Mooloolaba 87 Mooloolaba Esplanade Lease

Emily Pendleton 0402 435 446raywhitecommercial.com | Property ID 1303412

Sea Pearl

• Areas from 44m2 to 300m2

• Ground fl oor retail and fi rst fl oor offi ce • Outdoor dining, grease trap and exhaust connections available • Fit out assistance and tenancy modifi cation available for high quality retailers• Unsurpassed quality in the centre of Mooloolaba Esplanade in the newest building on the strip

Lease Retail


Motivated Vendor Maroochydore 4-6/27 Evans Street• Vacant possession

• 965m2 internal (smaller space is negotiable if required)

• This showroom area on the ground fl oor of the Plaza Home Centre is in a prominent location close to the Sunshine Plaza and with easy access to the Sunshine Motorway via Maroochydore Boulevard

• Plenty of onsite car parking

Sale and LeaseEmily Pendleton 0402 435 446

raywhitecommercial.com | Property ID Sale 1136189 | Property ID Lease 1179233

Sale and Lease Retail


Tenanted Investment - 8% YieldMooloolaba Lot 102/29 First Avenue• 61m2 available for sale on the ground fl oor of Sea Mark on First

• Annual income of $28,177 (approx) plus outgoings plus GST

• Leased until April 2016 with 3 year option

• Currently tenanted by Hairdresser / Beauty Therapist

• Excellent street exposure and car parking

SaleEmily Pendleton 0402 435 446


Sale Retail

250 specialist commercial agents in over 45 locations

Sale | Lease RETAIL

In The Market OFFICEThe announcement of the government agencies employment contracts has seen a lot of action happening in the office sector of commercial real estate. An increase in funding has had a knock-on effect on the number of governmental department staff, and consequently the demand for larger premises has increased. While there has been a gap in the market for A Grade space, a total of 2,000m2 has been leased in the Caboolture CBD over six premises, all scheduled for occupation by July, on 3x3 year leases. Additionally, 2015 has seen an increase in the average price per square metre to $320, a year on year growth of $40 per square metre, and no signs in the enquiry level slowing.

Queensland Health have leased three floors of office space, over 1,400m2, for administrative staff of the hospital, in the Nambour CBD. The centre still maintains a significant government presence with Centrelink and other employment services, alongside offices for Council. B Grade space with an average leasing rate of

$200 per square metre offers excellent opportunities for start-ups and those in the professional online, media and knowledge based suite of industries. The town has, in recent times, also established enough lifestyle attributes for workers, like Husk & Honey and the cafe at the Old Ambulance Station, for off-site meetings and networking opportunities.

Commercial precincts like Pratt Property’s Kon Tiki development on Maroochydore Boulevard and the Bli Bli Village Centre are presenting professional suites and office spaces within their developments, with varying sizes available. Stockland and Innovation Parkway have investment opportunities in both office and retail, and the medical and research hub of Kawana is addressing the need for office space located in proximity to the Hospital.


Morayfi eld 25 Leda Boulevard Auction Wednesday, June 17 at 11.00am

Chris Massie 0412 490 840raywhitecommercial.com | Property ID 1303327

Mortgagee in Possession Sale

• Partially tenanted freehold retail property• 1,079m2 building on 2,858m2 land• $161,943.20 + GST holding income• Three of fi ve tenancies vacantUnder instructions from the agents for the Mortgagee

Auction Retail


Morayfi eld 1a/260 Morayfi eld Road LeaseChris Massie 0412 490 840raywhitecommercial.com | Property ID 1160383

Immaculate A Grade Offi ce/Retail Space

• 155m2

• Fully fi tted out offi ce - nothing to do except move in• High exposure location on main road• Ample car parking and close to public transport• High speed fi bre optic internet connection

Lease Offi ce Retail

Chris Massie is a renowned and respected sales and leasing agent, known as an authority on commercial and industrial properties across the Moreton Bay region. His unmatched stock knowledge and ‘boots on the ground’ work ethic has resulted in his recent appointment as lead agent on two of the largest property portfolios in the Moreton Bay region - North East Business Park and DeMartini Fletcher’s Caboolture CBD property portfolio.


Chris Massie

Auction | Lease RETAIL | OFFICE


Caboolture 69 King Street LeaseChris Massie 0412 490 840raywhitecommercial.com | Property ID 1304268

Professional Offi ce Space – Caboolture CBD

• 334m2 professional offi ce space• Main street frontage in the heart of Caboolture CBD• Secure internal lift access• Ducted air conditioning• Onsite undercover secure parking (lift access)

Lease Offi ce


Caboolture King Street LeaseChris Massie 0412 490 840raywhitecommercial.com | Property ID 1275219

Quality Offi ce & Retail Premises In Caboolture CBD

• Various sizes ranging from 51m2-450m2+• Minutes to public transport, court and council facilities• Owner incentives offered• Ample on-site parking with secure tenant parking by negotiation


Ray White_Know How developed from experience in all markets

Lease RETAIL | OFFICE


Narangba 106 Potassium Street Lease

Chris Massie 0412 490 840raywhitecommercial.com | Property ID 1316083

Large Industrial Warehouse

• 2,272m2 clearspan building• Large concrete hardstand• Extra high tilt panel construction• 275m2 offi ce space• Toilet and kitchenette amenities

Lease Industrial


Quality Investment in Corporate Park EstateCaboolture 9-11 Boeing Place• 2,111m2 of 9m high tilt panel warehouse on 4,005m2 of land

• $288,000 per annum full net lease

• New 3 x 3 year lease

• Only 9m high building on Corporate Park Estate

• Provision to split into 2 tenancies in future

Sale Chris Massie 0412 490 840


Sale Industrial


Industrial Opportunity with High ExposureCaboolture Units 3 & 4, 85 Lear Jet Drive• Opportunity to lease 473m2, 474m2 or combine for 947m2

• Reception area/front offi ce space

• Toilet amenities and kitchenette

• Roller door access

Lease

Chris Massie 0412 490 840


Lease Industrial

Ray White_Know How creates competitive environments

Sale | Lease INDUSTRIAL

How many times have you daydreamed and lost yourself in private thoughts of an idyllic life where you could enjoy serenity at its best, leaving the hustle and bustle of day-to-day life behind for a while, and escape to your own private getaway island?

Wedge Island is located five kilometres offshore from Emu Park on Queensland’s Central Coast and forms part of the Keppel Group on the Southern Great Barrier Reef. Neighbouring islands include Pumpkin Island and Great Keppel Island, which has recently been granted approval for one of the largest island tourism and residential developments in Australia, set to deliver a world-class, eco-luxury resort and villas complex.

The 22.3 acres island is a Paradise for outdoor living, for a private weekend getaway and holiday sanctuary or for a more permanent seachange. From the island’s northern point ‘The Bluff’ to ‘Pebble Beach’ on the western shore, and from the craggy terrain of the eastern shore to the natural sand based harbour with multiple all weather mooring points, Wedge Island enjoys 360 degree vistas which are breathtaking from whichever way you turn.

The waters are teeming with fish and enthusiasts can enjoy catches such as cold trout, mackerel and reef fish. Hours are whiled away enjoying various water sports including kayaking, snorkelling or diving around the surrounding islands. The island is equipped with a fishing boat and a 4 wheel drive, both of which are included in its tenure.

Unlike Robinson Crusoe who made do without amenities, the island has 15,000 litre rainwater tanks, a bio-toilet, gas heated water, storage huts and a 15kva generator. Additionally, there is a TYM tractor with mower and 4 in 1 bucket to maintain the long grasses and assorted tools, building equipment and miscellaneous supplies.

Wedge Island is a once-in-a-lifetime opportunity to cast away life’s stresses and invest in an affordable dream.

special feature Idyllic island getaway...


Keppel Island Group Wedge Island Sale Chris Massie 0412 490 840

Ashley Rees 0411 707 410raywhitecommercial.com

Idyllic Island Getaway

• 22.3 acres• 15,000 litre rainwater tanks• Bio-toilet, gas heated water• Storage huts, 15kva generator

Sale Island

Sale Island

Damien Poole

Damien Poole’s expertise as an agent in the Moreton Bay region secured his engagement as sales and leasing agent of Corporate Park Estate, the largest business park in Caboolture with over 350 businesses. Prior to Ray White Commercial, he developed his family’s property development business into a successful brokerage business.



Birtinya 5/8 Innovation Parkway SaleDamien Poole 0414 457 022 Emily Pendleton 0402 435 446raywhitecommercial.com

National Tenanted Investment

• First fl oor strata titled 948m2 offi ce• Would suit investor• Situated in Sunshine Coast’s premier business hub• High speed NBN internet and A-Grade fi t out• Price on application

Sale Offi ce


High Profi le Retail OpportunityBuddina 134 Point Cartwright Drive• Stand alone building on 8,000m2 of land

• Total NLA 2,872m2

• Air conditioned retail showroom + offi ce + amenities

• Loading facility with electric roller doors

• High profi le position opposite Kawana Shopping World

LeaseDamien Poole 0414 457 022


Lease Retail


Ground Floor Professional SuiteBirtinya 2/8 Innovation Parkway• 376m2 ground fl oor offi ce

• A-Grade offi ce fi t out

• 9 designated offi ces + reception area

• Conference room + large open plan area

• Within close proximity to new Kawana Health precinct

LeaseDamien Poole 0414 457 022 Emily Pendleton 0402 435 446



Lease RETAIL | OFFICE


Sealed Hardstand + Industrial WarehouseKawana 21 Technology Drive• Comprising 1,050m2 factory fl oor + 97m2 mezzanine offi ce

• Fully fenced 3,403m2 block

• Good truck access and turning

• Multiple high clearance roller doors

• Zoned medium impact (light industry)



Lease Industrial


Stand Alone Industrial to LeaseKunda Park 26 Enterprise Street• 550m2 Industrial Warehouse

• Ground fl oor offi ces

• High clearance roller doors

• 3 phase power

• Secure gated complex



Lease Industrial


Modern Industrial Premier UnitWarana 1/29 Premier Circuit• 264m2 front position industrial unit

• 220m2 warehouse + 44m2 mezzanine offi ce

• High clearance roller doors

• Stunning location backing onto lake

• Good signage allocation



Lease Industrial


Industrial Hardstand Caboolture 8 Strathvale Court• 5521m2 compacted gravel & concrete hardstand

• Close proximity to the D’Aguilar Highway and Bruce Highway

• Dual access and full security fencing

• Small shed and site offi ce

• Suited to transport, logistics, waste management or storage uses

SaleDamien Poole 0414 457 022


Sale Industrial

Ray White_Know How reaches more local, national and international buyers

SALE | LEASE INDUSTRIAL

In The Market - IndustrialThe largest major industrial land release in Morayfield and the largest industrial site of its kind in Brisbane’s northern growth corridor, North East Business Park (NEBP), is currently on the market. The 169ha site located on Nolan Drive in Morayfield is zoned district industry, opening up the doors for 24/7 general industry uses including manufacturing, processing, storage, warehousing, retail warehousing, logistics, bulky goods, retail and corporate offices.

Ideally positioned adjacent to the M1 at Morayfield which carries over 78,000 vehicles per day, and just 36 minutes commute north of Brisbane’s CBD, it offers businesses great visibility and high exposure to the Bruce Highway and excellent proximity to Brisbane Port, Australia TradeCoas and Brisbane’s Domestic and International Airport.

NEBP adjoins North Harbour, a proposed marina and residential precinct with 1000 approved lots, further adding to NEBP’s potential for future growth. The lack of large general industry options north of Pine River has seen the area miss out on some major potential operators in recent years, so the new release will help meet that demand moving forward.

Across the industrial sector, the level of enquiry has been steady, in particular for the smaller 200m2 - 300m2 lots which are increasingly more difficult to secure. While many premises fit the bill on paper, with the mezzanine space taken out of the required floor space, often there is a shortfall.

Stock is tightening in the Kawana district with the market driving demand for its proximity to the Hospital, and medical and research precinct.

Overall, the current climate is encouraging a buying mentality and funding options have greatly improved. Buyers are working more closely with brokers who can facilitate up to 100 per cent of lending based on the strength of their business, which until now, has been virtually unheard of. Furthermore, there has been an increase in vendor financed packaging for tenants looking to buy, yet may not have access to the required deposit, and who are negotiating advantageous and structured lending and repayment options.

CLONTARF 20 Redcliffe Gardens Drive

MAROOCHYDORE 3/67 Aerodrome Road,

CABOOLTURE 1/14 Annie Street

MAROOCHYDORE 8/13 Norval Court

MAROOCHYDORE 302/3 Emporio Place

NAMBOUR T39, 52-64 Currie Street

CABOOLTURE 3/3 Lear Jet Drive

MAROOCHYDORE 8/87 Aerodrome Road

MAROOCHYDORE 21 Beach Road

MAROOCHYDORE 21/13 Norval Court

MAROOCHYDORE 1 & 2, 6-20 Ocean Street

NAMBOUR T52, 52-64 Currie Street

MAROOCHYDORE 35 Cornmeal Parade

WARANA 5 Technology Drive

CABOOLTURE 29 Piper Street

MAROOCHYDORE 14/2 Ocean Street

BIRTINYA 1/9 Capital Place

YANDINA 3/46 Hospital Road

CABOOLTURE 2/42 Cessna Drive

MAROOCHYDORE 3/7 Charlston Place

CABOOLTURE 1/17 Lear Jet Drive

KUNDA PARK 18 Hitech Drive

CALOUNDRA 87 Bowman Road

NAMBOUR U4/24 Central Park Drive

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Success Stories

Why engage a commercial property manager?In nearly every aspect of life, we are proffered with self-servicing options; withdraw and deposit cash, pay for groceries, wash the car and pay for petrol. While these services can certainly make life a little easier and more efficient, there are certain services that should arguably be left to the professionals to avoid potential legislative pitfalls and unnecessary stresses.

Most property owners are time-poor, busy with working in or on business, distracted with family life, and caught up in day to day living. Adding the management of a property portfolio on top of existing responsibilities can incur costly mistakes over time, with potential for badly structured lease agreements, or even more of a headache, tenants from hell.

While most tenants are extremely courteous and respectful business owners, there are always exceptions to the rule and if you’re unlucky enough to encounter a bad tenant, you could be looking at rent that is months in arrears, damage to property or refusals to vacate the property.

Commercial property and asset managers are skilled in holistically approaching a property’s management, and are acutely aware that the three key factors that every owner wants addressed are ensuring monies owed by tenants are paid on time, ensuring the building is well maintained and looked after, and vacancies are filled quickly with quality tenants.

Quality property managers offer a very hands on approach to asset management, responding to queries and requests, as a matter of priority, for both owners and tenants alike. Additionally, a clear chain of communication should ensure both owners and tenants are kept abreast of all occupancy matters, for example, rental arrears, maintenance or inspections. This contributes towards better maintained lease options, more harmonious tenancies and an increased likelihood of longer tenancies - a win/win for owners and tenants alike.

Importantly, property managers will prepare monthly summaries detailing all financial activity accompanied by copies of paid invoices and statements for all tenancies. These should detail matters of interest in relation to relevant tenancies including any arrears, upcoming lease renewals, rent reviews, vacancies and general tenant issues. As property management fees can be claimed as part of outgoings, there is essentially no cost to the owner for engaging the services of a professional property manager.

At the heart of it, property management is expert ‘people management’, an important skill that enables property managers to effectively deliver quality client services and assurance to property owners. And while scientists the world over create more and more self-servicing options, there’s a lot to be said for engaging in a real experience in professionalism.

• Detailed monthly reporting • Financial management• Annual inspections • Industry compliance• Lease negotiations • Lease structuring • Tenancy performance • Building and facilities• Maximising returns • Expert professional advice

Call 1300 25 50 75 to arrange your free 30 minute appointment with one of our expert Senior Commercial Property Managers and discover how we can tailor a management solution suitable for you, and your industrial or commercial property portfolio.

Ray White Commercial Property Management

E [email protected] T 1300 25 50 75 F 07 5430 3799 Level 1/77, Mooloolaba Esplanade QLD 4557

Expert Asset Management _Know How and Experience

Learn A New Language - ‘Bank Speak’We’ve all done it. Seated in front of our broker or banker while they use terms that may as well be quotes from a foreign language and we nod our head and pretend we understand. Let me take this opportunity to give some clarity around some of the most commonly used terms.

LVR (or LSR) Loan to Valuation Ratio (LVR) or Loan to Security Ratio (LSR). The ratio of the loan to the value of the property expressed as a percentage for example, a $600k loan on a $1 million property is a 60% LVR.

Interest Cover The number of times that the estimated annual loan interest can be covered by the net profit (or rent) before tax. For example, if your annual interest bill is $60k and your net profit before tax is $100k, then your interest cover is 1.67:1 or 1.67 times.

Interest Margin This is the margin charged by the bank over its actual cost of funds. The margin set is a reflection of the risk of the deal. Traditionally a fully leased industrial investment might have risk margin between 1.5% to 2.5% however a speculative industrial construction project might have a risk margin of between 3% to 5%.

Gearing Refers to the amount of debt that a portfolio of properties has against the value of the portfolio. A portfolio that has 50% of debt against its value could be described as conservatively geared whereas a portfolio with 85% debt would be described as highly geared.

Stress Testing Some lenders look to see if an investor can sustain interest rate increases throughout the life of a loan. They do this by adopting an interest rate higher than the current real rate and analyse whether the borrower’s profit (before tax) can support that notional increased rate.

About the Authors: Paul Robertson and Lynne Robertson are Loan Market brokers with over 30 years commercial banking experience. They offer advice and solutions for buyers across the Sunshine Coast and Moreton Bay regions.

Get the insider’s edge with Loan Market

When you use a Loan Market Commercial Broker, you’re giving yourself the insider’s edge.

That’s because:

We are specifically accredited with all the major commercial lenders

Our brokers have many years’ commercial lending experience and utilise their industry skills and knowledge to find you the right loan for your circumstances

We can facilitate funding for any commercial purpose including:• Residential subdivisions• Commercial subdivisions• Residential investment or refinance• Commercial investment or refinance• Residential developments – any density• Commercial developments – retail, industrial, offices

To find out more about commercial finance contact Paul Robertson today.

Paul Robertson, Commercial & Residential Lending Specialist

M: 0429 625 530 T: 1300 549 454 E: [email protected]

BRO_1645_OCT14 | Australian Credit Licence 390222

5438 8143

Our integrated technology platforms, database systems,

and reporting procedures ensure that our clients benefit

from a consistent and documented sales and

management process.

Ray White_Know How creates the industry’s leading sales and marketing process


T 1300 25 50 75 E [email protected] www.raywhitecommercialnorthcoastcentral.com

ray white commercial know_how | edition 3

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