Officeworks North Lakes Sells on a 10-year Lease-Back with a Record-Setting Yield

The newly-opened Officeworks in North Lakes has been sold on a 10-year lease-back for $7.093 million, reflecting a record 4.8 percent yield. The sale is believed to be the new national benchmark yield for a freestanding Officeworks shop.

Officeworks , one of the leading retailers and suppliers of office products in Australia, recently opened their 165th store in North Lakes to the public last 30th of June and was officially launched on the 6th of July.


Strategic Location

North Lakes Aerial Image
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The sale was closed to a private Melbourne-based investor that was represented by Joel Wald of MMJ Real Estate. Savills agents Peter Tyson and Jon Tyson facilitated the sale in behalf of Officeworks Limited.

The sale attracted more than 180 separate enquiries and multiple offers across Australia. Officeworks’ single tenant investment attribute sparked the hot sale competition.

“… New single tenant investments with long lease security and blue-chip covenants such as Officeworks are highly sought after by the marketplace due to their bond-like attributes,” Peter Tyson said.

Photo credit: Bunnings Warehouse

Officework’s location in the North Lakes Business Park is viewed as strategic due to the rapid growth of the North Lakes area, something that has retailers lining up to be in the precinct. According to Mr. Tyson, the list of retailers includes Queensland’s Costco Wholesale outlet, Queensland’s biggest Bunnings Warehouse, and the IKEA store located near the Westfield Chermside. North Lakes is fast becoming a booming epicentre of urbanisation.


North Lakes as a Fast Growing Suburb in Queensland

According to data released by the Australian Bureau of Statistics (ABS), North Lakes is the fastest growing suburb in Queensland and the fourth in Australia, expanding by nearly 40 percent over the course of five years.

In recent years, North Lakes has seen several significant developments. Ever since Bunnings, Costco Warehouse, IKEA, and Westfield North Lakes began operating, the North Lakes Business Park has been a big source of jobs. Adding to the market is Officeworks that also opened its doors to employment this year.

These infrastructure developments appeal to many people. North Lakes’ location just 25 kilometres from the Brisbane CBD and excellent transport access make it a popular destination, with the suburb seeing a large number of centre visits each year.

North Lakes also has the highest number of house sales in the Brisbane region for the year to date, as Corelogic data shows. Home values have grown in the past five years with a median house price of $478,000.

It’s no surprise that North Lakes is enjoying dynamic growth. It seems that developers in the area make sure that there are enough developments every year to supply the needs of the growing suburb.

“… North Lakes is one of Australia’s largest and most successful master planned communities, and has become the epicentre of the high-growth urban corridor north of Brisbane,” Mr. Tyson said.

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As if to drive home the point, Laguna North Lakes, a $250 million mixed-use development project, is expected to open in late 2017.