Welcome to the Pure Property Management February Newsletter.
In broad industry news, recent research is showing that the relationship between commercial landlords and tenants is shifting towards a provider/customer model with landlords focusing on flexible office spaces with shared facilities that enhance the tenancy experience. You can read more about this here.
In local NSW news, a new vision for Nelson Bay’s future has been announced this month by Port Stephen’s Mayor Ryan Palmer: Nelson Bay Next is an initiative that has been developed to help showcase exciting projects led either by Council or the community within the town centre. You can read more about this fantastic initiative here.
Early in the month Jane from our NSW team attended the official opening of the Spark CoWork space. The opening was conducted by the Mayor of Port Stephens and covered by Port Stephens Examiner. Congratulations to our tenants on their official opening, we can’t wait to see how this space develops and the positive effect it will have for small business in the local area. You can read more about the opening here.
240 Waterworks Road, Ashgrove QLD
The home of the newly refurbished 2 level Goodlife Gym and Hypoxi Studio. Highpoint Plaza is certainly shaping up to be a local health and wellbeing hub. Over the Christmas period new leases were negotiated which saw current tenants Metro Radiology expand their space and new tenant Vitalita commence their fit out in preparation of opening a detox and wellness space that is a perfect fit with the medical practice, holistic skin therapy, physiotherapist and beauty clinic that are already onsite.
77 Hudson Road, Albion QLD
Is Headquarters to Vita Group, Telstra’s only master licensee. This building is currently undergoing a full renovation and is now 75% complete. During this renovation the building had a new café installed on the ground level and just prior to Christmas this was completed and is now open and fully operational. Currently work is being completed on the top level which will provide the tenants with a stunning and modern outdoor break out area.
50 Hunter Street, Newcastle NSW
Sidcor are the main tenancy at this property and they have recently benefited from a full refurbishment of level 4, check out the photos below. The senior leadership team at Sidcor moved in late January.
The owners of the building also obtained a DA late last year to remove the old police gym staircase to increase the Net Lettable area on levels 4 and 5, which also subsequently increased net rent.
For those of you interested in commercial property analysis, the capitalisation rate uses the net rent and market yield to determine the value:
Net rent ($) ÷ Capitalisation rate (%) = Value ($)
for example $100,000 net rent at a cap.rate of 7% would be:
$100,000 ÷ 0.07 = $1,428,571
NEW LISTING FOR LEASE: 132 Hannell Street, Wickham NSW
High Exposure Warehouse on corner block, roller door access, and air conditioned offices. For Lease $90,000 P.A. Exc. GST + Outgoings. Contact Jane Lestone for more information: 0427 776 776.