Raine and Horne Commercial

QLD - Toowoomba Andrew Lynch of Commercial Toowoomba says yields in the region are in the order of 7.5% for industrial and office assets, while ranging from 7-7.5% for retail space. He believes a key market driver is “Investors actively seeking tenanted properties due to low interest rates”. That said, Nick and the team at Toowoomba are also seeing enquiries from business owners looking to owner occupy. Andrew notes, “Whilst the sale market remains strong, there is limited quality stock coming onto the market. We are seeing an uplift in enquiries for regional investments due to the return on investment (ROI) being higher than metropolitan markets.” Leasing has also picked up in regional townships. In Dalby, for instance, which has largely been insulated from the impact of COVID-19, rental stock is at its lowest for some years, says Nick Koenig of Commercial Toowoomba. As a guide to the health of the market, a multi-tenanted group of shops in a regional location was sold for $850,000 with an ROI of 10%. In the leasing market, a 10-year lease was secured for a tilt panel warehouse and yard. The multinational tenant is paying $127,500pa net, Nick noted. 28 - Andrew Lynch andrew.lynch@toowoomba.rh.com.au