Raine and Horne Commercial

15 | INSIGHTS SPRING 2018 QLD | Toowoomba Toowoomba “ Landlords are offering generous incentives to get their tenancies occupied, and businesses looking to relocate to the Toowoomba region can obtain great lease deals. ” Nick Koenig of Commercial Toowoomba says that current yields are around 7.5% on retail assets rising to 7.5-8.0% for industrial and office space. He notes, “There is limited supply of quality industrial investments in the Toowoomba region. Buyer enquiry far exceeds supply and some purchasers will pay above the market rate for exceptional industrial premises. Quality industrial property is leasing quickly – particularly stand-alone properties with a yard. Similarly, tenants are enquiring about quality office space especially if car parking is available as this is a major factor of tenant appeal.” A range of infrastructure projects are boosting the Toowoomba region’s economy including the Second Range Crossing and the Charlton Internodal Freight Terminal, though Nick says low interest rates are the real market driver. Nick notes, “Generally there is an oversupply of commercial /retail space across the board and this has affected lease pricing. Landlords are offering generous incentives to get their tenancies occupied, and businesses looking to relocate to the Toowoomba region can obtain great lease deals.” He continues “Rents have fallen however landlords are opting for shorter term leases that provide the option to re-negotiate rents later on.” Good quality sale property is becoming harder to source in the Toowoomba region, with owners tending to hold their properties, and purchasers are leaning towards A-grade properties with longer term leases.