A multi-tenanted retail centre in Brisbane’s inner-east has sold at auction for $5,800,000 with Ray White Commercial’s Lachlan O’Keeffe and Michael Feltoe.
Situated adjacent to the iconic Hawthorne Cinemas, 265 Hawthorne Road is a high-street retail and dining complex comprising 6 specialty tenants just 3km* from the Brisbane CBD. Mr O’Keeffe said the centre, which was newly built in 2020, was very popular with both local and interstate investors.
“We have been inundated with 192 enquiries fielded from all across Australia, which is a good indication of how many private investors are looking for multi-tenanted retail centres in the sub-$10 million price point” he said.
“The strength of this interest was reinforced by the highly competitive auction with spirited bidding from five private investors.”
The sale reflected a yield of 5.52 per cent and a building rate of $14,536/sqm which Mr Feltoe said far exceeds the average for Queensland retail centres.
“We typically see most retail centres in Queensland transact between $5,000/sqm to $10,000/sqm, so to achieve a building rate almost 50% greater is an outstanding result in what had been considered a softening market,” he said.
“With the cost of debt having now increased back to normal levels, this is a strong result that shows private investors are continuing to hold retail centres in high regard for both their stable monthly returns and track record as a safeguard against high inflation.”
