Noosaville commercial property sells for $1.1 million under the hammer

A strata-titled commercial property at Noosaville on the Sunshine Coast has sold under the hammer for $1.1 million.

A local investor purchased the 5/5 Gibson Road property on a yield of about 8.77%.

John Petralia and Paul Forrest of Ray White Commercial Noosa negotiated the sale on behalf of local business owners.

The 395 square metre property is leased to Jetts Fitness Noosa, which has five years remaining on its current lease. The gym operator is paying net rental of about $96,500 per annum.

Mr Petralia said the marketing campaign for the property attracted about 40 enquiries with one offer to purchase prior to auction.

“With official interest rates at record lows and growing consumer confidence, the moral of this story if you are considering a property that is going to auction make sure you are in position to bid,” he said.

Commercial property yields, he added, were currently ranging between eight to 10%, almost double residential investment yields.

“There is a significant amount of money, including self- managed superannuation funds, chasing quality commercial properties,” said Mr Petralia.