Paget ripe for expansion as space fills
INDUSTRIAL space is filling quickly in Mackay and stocks are dwindling, but it's not the same story for office space in the city centre.
There is a glut of office space in Mackay in the wake of a Nelson St building that houses State Government departments, according to Raine & Horne's latest Commercial Insights report.
Raine & Horne Commercial Mackay managing director Des Besanko said the "relatively newly constructed government building” has impacted the office space market.
"This may be the tail in the market for a while longer due to the level of large office floor plates made available from this,” Mr Besanko said.
But investors are looking to buy buildings that have medium to long-term leases in place.
It's a different story with industrial property, with business and large self-managed superannuation funds looking to cash in on industrial space.
Low interest rates and a rejuvenated mining sector mean high yields for investors willing to invest in industrial property.
"We are coming to that stage where most vacant standalone facilities are leased, and there is a shortage of good, vacant, standalone sheds with good specs such as cranes, hardstands and so on,” Mr Besanko said.
"We are at the point where we are having conversations with companies and explaining that if they need anything bigger they need to consider the option of buying land and constructing a new facility.
"There is some good buying available now.
"A few years ago, when we were hitting the market's highest peak, we were selling land in the early $200s per square metre. Today, on average, new industrial land is now selling in the mid $100s per square metre.”
Fifteen spaces have been leased since the start of the year, with established Paget companies looking to expand as activity increases.