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Premium Investment Market Update

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March 2022

Colliers' expert Hunter Higgins, National Director, Brisbane City & Metro Sales | Investment Services provides a market update on premium investments.

The start to 2022 has seen restrictions eased and the opening of certain state and international borders.  In 2021 we saw many institutional and private investors adapt to the ever-changing landscape of COIVD-19. With consumer spending behaviour changing, so did the demand for commercial retail space.  The appetite for convenience, neighbourhood and large format centres remained strong, while ever popular Premium Investments like childcare, fuel stations, medical, and fast-food services have strengthened as recission-proof assets. Particularly in times of uncertainty and unknown snap lockdowns, the past two years has seen drive-thru retailers and service stations perform better than ever. 

In addition to their ‘defensive’ income nature, these assets provide:

  • a long-term future land holding,
  • ideally located on a corner,
  • traffic-light-controlled intersections,
  • dual laneways on a major road or highway and
  • the site may be repurposed into something else in the future.

Premium investment’s yields continue to break records with new benchmarking price points.  Typically sitting between 4.5% – 5.5%, with some breakout yields being achieved for high quality, long WALE assets breaching 4% yields.

This was evident in 2021, with the Colliers Queensland Premium Investments Team of Nick Dowling and Daniel Vella negotiating the only McDonalds in Queensland to be sold in over 12 months.  18 Nicklin Way, Minyama Sunshine Coast was 100% leased to McDonald’s Australia Ltd. The property was sold at Auction with 16 registered bidders and over 150 enquiries generated throughout the campaign. The 2,795sqm* asset sold on a 3.57% yield, a record for the Sunshine Coast market.  

Neighbourhood centres, fuel stations, fast food, medical, and childcare are being perceived by investors as far less riskier assets. The defensive nature of these assets and changing consumer trends will likely see them retain their values in 2022.


Related Experts

Hunter Higgins

National Director, Brisbane City & Metro Sales | Investment Services

Brisbane

Hunter Higgins joined Colliers International in 2010 and has been leading the Brisbane Investment Services team for the last 5 years.  

Hunter and the team offer their clients a tailored service by specialising in sales across the following investment property categories: office and retail, mixed-use development sites, office and retail strata property, Asia markets, premium investments and Restructuring Property Services.

With over 15 years’ experience in the real estate industry, Hunter has an exceptional track record and proven success as a market leader. He specialises in the Brisbane CBD and Metro markets with a focus on office and retail investments, and mixed-use development sites.

When it comes to customer service, Hunter invests in relationships to deliver enduring value, and offers enterprising solutions to achieve the best outcome for his clients. He retains long standing client relationships by continually exceeding their expectations through his strong market knowledge, active buyer relationships, solid work ethic, campaign management skills, honest feedback, clear direction and determination to achieve the best possible result.

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Nick Dowling

Managing Director | Sunshine Coast

Sunshine Coast

Nick began his commercial real estate career in 1997 as an industrial specialist on Brisbane’s southside. He quickly made the transition into the corporate world in 1999 where he worked for Jones Lang LaSalle until late 2004. His time in the Brisbane market enabled him to establish strong relationships and contacts with some of Queensland’s most active players in the commercial property market.

Since moving back to the Sunshine Coast in 2004, Nick has become the Managing Director and owner of Colliers International’s Sunshine Coast business and has a focus on ensuring he maintains a dynamic team of property professionals.  

Nick also has a particular interest in the identification of major development and investment opportunities. His track record in these areas of the market is a reflection of his understanding and belief in the Sunshine Coast property market.

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Daniel Vella

Senior Executive Commercial Sales & Leasing

Sunshine Coast

Daniel brings 15 years experience in the real estate industry.  Daniel's career started in residential project marketing moving through to development acquisitions, commercial sales and leasing.  Daniel has demonstrated ability in the selling and leasing of strata titled commercial premises on the Sunshine Coast.

Commercial transactions are his consuming passion, being upfront, open and delivering what is promised is important to Daniel.

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