Queensland Officeworks sale sets record low yield

A newly developed Officeworks in Queensland has been sold on what is understood to be a national record low yield for an Officeworks store.

The 1,661sqm Officeworks store at North Lakes in Brisbane’s high-growth northern corridor has pre-sold on a 10-year lease-back for $7.093 million, reflecting a record 4.8 per cent yield.

Savills’ Peter Tyson and Jon Tyson handled the marketing and sale on behalf of Officeworks Limited to a private Melbourne-based investor with Joel Wald of MMJ Real Estate acting for the buyer.

Tyson said Officeworks North Lakes attracted intense buyer interest nationally with more than 180 separate enquires and multiple offers.

“This was a very hotly contested offering, resulting in what is believed to be a new national benchmark yield for a freestanding Officeworks,” he said.

“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.”

Officeworks developed the new store with parking for 57 cars on a 4,029sqm high profile corner site on Flinders Drive in the North Lakes Business Park.

“Officeworks viewed the location as strategic as the new store will join a growing list of retailers lining up in the North Lakes precinct,” Tyson said.

“These retailers include Queensland’s only Costco Wholesale outlet, Queensland’s biggest Bunnings Warehouse, as well as Ikea’s recently opened store in the nearby Westfield North Lakes regional shopping centre.”