The astonishing growth that Commercial Collective has seen over the past three years has led us to further develop the business by expanding our services into a new location; Commercial Collective East Maitland.
Commercial Collective East Maitland is a centre of commercial and industrial excellence where clients will be able to explore greater opportunities the Maitland and Hunter Valley region has to offer.
Maitland is one of the fastest growing cities in NSW located on the outskirts of Australia’s most recognised wine region and along the Hunter River. It is well-positioned for sustainable and continued growth within proximity and convenient access to Sydney, Newcastle, and the Hunter Valley as well as airports, shipping terminals and freight rail access.
The forecasted significant future growth in the Maitland area, sitting at a consistent rate above 2% per annum, provides ample opportunity for our clients. Extensive land releases for residential, industrial, commercial, and retail developments are fuelling a strong construction industry and helping lead the way in the city’s thriving expansion.
Regional areas, such as Maitland, also provide expenditure advantages over their inner-city counterparts when investing in commercial or industrial real estate, ranging from affordable entry costs to higher yields. They also generally have more space for growth than capital cities providing an opportunity to further develop the property and increase the rental income.
As we become the new authority for commercial and industrial real estate in the Maitland region, our clients have the opportunity to grow with us. Commercial Collective East Maitland was driven by the need to further service our clients in the Hunter region, by providing a space to host local clients as well as introducing all the region has to offer for clients not as familiar. We grow, so that our clients can grow with us.
Commercial Collective, experts in growth.
Major commercial property site Maryland Shopping Centre has been leased off-market to the supermarket chain Woolworths. Purchased in 2017, the site was recently negotiated for lease by Commercial Collective to the Woolworths Group, completing the planning phase to revitalise the neighbourhood centre.
Commercial Collective Partner, Matt Kearney, has expressed why this new addition to the centre is a great win for not only the Maryland community but the occupying retail tenants in the centre.
“As Newcastle’s western corridor continues to experience substantial growth, Woolworths will provide a much-needed every day needs service to the community as well as support the long-standing mix of existing tenants through an uplift of traffic to the shopping precinct.”
Owned by a Newcastle-based investment group, the centre was originally purchased with a complete redevelopment in mind. A spokesperson for the owners, Gavan Reynolds highlights how the new tenant is the key to reviving the retail centre.
“Woolworths’ committing to the centre is further testament to the faith we have had in the centre and the community it serves. The area was under serviced for everyday retail and to be able to create the environment we will for the locals and the retailers once the centre is complete is very exciting. We look forward to investing in the redevelopment of this centre and providing the western Newcastle communities with an up-to-date centre and a full line store from one of Australia’s leading supermarket brands,” Mr Reynolds said.
The owners worked patiently with Newcastle City Council, who were proactive in creating a plan which received no objections from the community, further highlighting the new store is highly welcomed by the greater western Newcastle community.
The centre will be redeveloped to incorporate the existing tenancies and provide Woolworths with the 4,000+ sqm they require for their latest store design. Additional car parking totalling 220 spaces will be created, and a new entry to Boundary Road will be constructed to provide additional convenience to customers.
The new Maryland Woolworths is expected to open in the first half of 2023.
*Above image is an artist’s impression of the redeveloped Maryland Shopping Centre.
Newcastle’s Beaumont Street is best known for attracting large crowds with its lively dining and nightlife experience, featuring numerous popular cafés, restaurants, and bars all within walking distance of each other.
15 Beaumont Street, Hamilton, is a prime vacant development site in this highly sought-after street, and Commercial Collective is pleased to present it to market for sale.
Formerly the Gallipoli Legions Club carpark, Matt Kearney, Commercial Collective partner, highlights the rarity and attractiveness of this site to the market.
“Located in a long-standing popular eat street, this property provides several opportunities for high-end development with the key advantage being that it is vacant, meaning no need for demolition in order to commence.”
With a guide of $2 million, the site is located in a blue-ribbon city fringe suburb and has frontage to both Beaumont Street and Eva Street. It offers 973sqm* of level vacant land and is zoned B2 Local Centre & R3 Medium Density Residential.
Featuring excellent public transport connectivity and accessibility to lifestyle amenity, interest is being received from both Newcastle and Sydney based residential developers as well as owner-occupiers looking at building their own commercial development.
“We’ve also had interest from build-to-rent developers as well, with a bit of a focus around providing housing for essential service workers like firefighters and police and nurses who need to be located close to public transport,” Mr Kearney said.
This site is being sold via Expressions of Interest closing Thursday 28 October 2021 at 4pm.
In recent months, commercial real estate has seen a large growth in demand but what exactly is driving this? There are a few external factors that have accelerated this surge and overall attractiveness of commercial real estate property.
Low interest rates equal cheap cost of debt. In order to maintain jobs and keep business going, throughout the pandemic, Governments worldwide have injected unprecedented levels of money into their stressed economies. For the same reason, central banks have reduced interest rates and the cost of debt. The combination of more money flowing in economies and cheap loans has significantly increased demand for investment assets across just about every asset class. We see this very clearly in the massive increases of the past 18 months in the price of traditional investment assets such as company shares traded on stock exchanges, Government bonds and real estate especially, residential and commercial.
Investors are looking for higher yields and returns. As the residential market is becoming more expensive and harder to secure property, commercial property stands out as a better investment alternative. For commercial property investors, yields are typically much higher than residential property. Yields from commercial property can be anywhere from 5% to 10% whereas residential property could sit between 1% and 3%. Leases for a commercial property are generally much longer than residential, in most cases ranging between three-ten years, providing you with a reliable income stream once you find your tenant. It also means less changes for tenants so you’re not out looking for a tenant every year.
Institutional investors, investment trusts and offshore buyers contribute to demand. The above conditions make a case for searching more widely for secure and attractive investment assets which may not yet have attracted the interest of many investors. It could be argued that commercial real estate has relatively been overlooked compared to other asset classes. These favourable conditions for investors such as cheap cost of debt and high yields have therefore increased the demand of commercial property, especially in the industrial and logistics (I&L) sector aided by the exponential rise of e-commerce.
Interested in learning more about commercial real estate? Introducing CC Coach, your commercial real estate coach and guide to investing. Launching officially in 2022, discover the fundamentals to commercial real estate investing and a sneak peek into the course with the free CC Coach introductory eBook. Download your copy HERE.
With over 12 years of property expertise, Dane is the General Manager and one of the founders of Commercial Collective. He has lent his considerable expertise to more than $2.5 billion in projects and continues to lead and support the entire Commercial Collective team.
Q: How did the idea of Commercial Collective come about and what made you make the leap to starting the business?
A: The idea of Commercial Collective was formed with the drive to build a Real Estate business that operated for tomorrow. One that was responsive, fast moving, and innovative – a revolutionising agency that encouraged creation, collaboration, and engagement.
Starting a new business was about putting the focus back on what real estate is all about – serving our clients. The best way to do that was by carving our own path ensuring our core values were always at the forefront of what drives us.
Q: What excites you the most about the future of commercial real estate?
A: There is a real shift away from big agencies as the market provides new alternatives. With access to market intelligence and new forms of resources, it ensures all firms can improve the overall client experiences across the board.
A continued need for collaboration is another key area that excites me – I can see this element being a real focus point in the future for commercial real estate. Driving different services and expertise to come together in order to deliver the best possible results and client success.
There is no denying that Newcastle is a city on this rise. Impacts of COVID-19 paired with advances in technology have changed the way people live and work, with a clear result showing people can easily work remotely. This has caused a shift in investment trends with dozens of regional areas benefiting as a result.
Residents and investors are now seeking alternate locations to live and/or invest as major cities become less and less affordable. In comparison, Newcastle offers affordable property prices making it an attractive alternative to buying in Sydney with very similar profits to be made by investors and developers.
With only a 2-hour drive from Sydney, a growing population and major city development, it is easy to see how Newcastle is a highly sought-after city for investors. In comparison to larger metropolitan markets, it offers lower land values and higher yields for both domestic and international investors. Sydney and Melbourne rental yields can sit between 3%-4% whereas Newcastle is seeing a great yields between 5% – 6.5%.
Newcastle also offers newcomers and investors an enticing lifestyle change, providing convenience of big-city living without the hectic pace or traffic. It hosts some of the best beaches, lakes and parks in the Australia as well as providing a lower cost of living. Paired with large development projects in the Newcastle CBD, there will be no shortage of great places to eat, drink, shop and overall enjoy.