Officeworks Sale Sets New National Yield Benchmark

An Officeworks store in Brisbane's outer-north has sold on a record 4.8 per cent yield -- reportedly a new national low for an Officeworks store.

The Officeworks at North Lakes sold on a 10 year lease-back for $7.093 million.

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

Peter 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 1,661 square metre store with parking for 57 cars on a 4,029 square metre high profile corner site on Flinders Drive in the the North Lakes Business Park.

Tyson said Officeworks viewed the location as strategic because of the rapid expansion of the North Lakes precinct and the growing list of retailers lining up to be a part of it.

"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," he said.

“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.

“The market continues to witness strong demand for quality income streams,” Tyson said.