With the commercial property market in Perth still in a more subdued state, this sale represents a great win for the Realmark Commercial team.
“It was great to be able to deliver this result in a tough market,” Realmark Commercial Executive Director Mike Rowe said.
“We put a lot of effort into attracting the right buyers and competition through our Offers to Purchase campaign and it worked well with multiple offers being made on the property.”
The Balcatta site is in the heart of the established Erindale Road showroom strip, 12km north of Perth’s CBD.
It is a corner site with multiple tenancies suitable for showroom, office or warehouse use. The tenancies have various lease terms of $816,000 per annum including some key national tenants.
Mr Rowe said the reality was investors do not want to take risks so any offering that had a proven return was highly sought after.
“Investors want surety, they are rating and weighing up all of the risk associated with any investment at the moment and they are turning away from the stock market and looking more to proven stable investments such as bonds and tenanted properties,” he said.
“Properties that are fully tenanted with a 7 or 8 per cent return are very good and investors are starved of those kinds of offerings.”
Gavin Lilleyman, Realmark Commercial Sales and Leasing Associate, who also worked on the deal said the real selling features of this site were its multiple tenancies in place showing a strong yield, great proximity to the CBD, good connection to major roads for distribution, great surrounding prime national tenancies and plenty of potential for medium-term redevelopment.
“The buyer of the Erindale property owns other commercial property in Balcatta and understands the area’s value so he was prepared to make a strong offer,” Mr Lilleyman said. “He was also attracted to the strong yield from the existing tenancies and the future potential of the site.”
Mr Lilleyman said they had been able to leverage multiple offers to gain a very good result for the area.
“The multiple offers on this site reflects more on the fact that if you have the right product there are investors and syndications out there looking for good investments with tenancies. Selling a vacant property in this market would have been very different.”
“So although the Perth commercial property market for the past year has been fairly stagnant the market now is changing. Realmark Commercial has sold three properties in the past week over $1 million, so buyers are definitely coming back into the market.”
The team made such a great impression on the new owner during the sale transaction he retained them to manage the Balcatta property.
Realmark Commercial has over 30 years experience in the WA property market and is now one of the largest commercial offerings in Perth.
Our team specialises in sales, leasing and management of the commercial, industrial and retail real estate, providing the full range of commercial property services from market appraisals and rent reviews to full trust accounting, strata management and project advice.
Our results are driven through local market expertise, an extensive tenancy network, award-winning marketing, and practical guidance.
Mr Rowe said it was always a privilege to help small businesses, corporates and private investors create wealth with commercial real estate.
“Our priority is understanding our clients’ investment goals and we work with them to share our extensive property market knowledge, together with research and market intelligence, to assist and assure them in making informed property decisions,” he said.
“We analyse the location, amenities and unique offering of every property we sell, lease or manage so that we can recommend strategies designed to protect our clients’ investments and maximise their returns.”
If you would like to learn more about Realmark Commercial or interested in joining the team visit our website for contact information click here.