A "unique" position and established tenant are expected to provide the appeal for a commercial space opposite Newcastle beach that is being marketed be Commercial Collective and set for auction next month.
Commercial Collective's Adam Leacy said bidding was expected north of $1 million for the investment opportunity at 102/61 Shortland Esplanade, Newcastle.
The property is occupied by an established cafe tenant in Liquid Gold with a lease in place until 2023 and options to 2028. It has a rental income of approximately $68,573 per annum net plus GST.
"The tenant has been there for over 10 years and a beachside position is pretty unique," Mr Leacy said. "The tenant is a good tenant who still traded successfully through COVID on the basis of their location."
The property comprises a ground floor space operating as a fully functional cafe with cool room, store room, air conditioning and private amenities.
Auction bidding is expected to start in the mid-$600,000 range for a property Commercial Collective are marketing at 79 Young Street in Carrington.
The site is around 345 square metres in size and comprises two freestanding buildings with a commercial space at the front and workshop at the rear. It is leased until June next year and returning around $33,100 gross per annum plus GST.
"It is on the main street, has good exposure, is currently tenanted and has some flexibility around the zoning which could allow for some additional development on the site ," Mr Leacy said.
Commercial Collective's Byrne Tran reported "a flood of enquiry" for two adjoining properties at 9 and 11 Channel Road in Mayfield West that he has described as one of the best industrial investment assets to come to market in the past six months.
The properties are leased to Port Hunter Conveyors on a 7 + 7 + 7-year leaseback.
The building at 9 Channel Road is returning around $397,500 net per annum plus GST and 11 Channel Road around $215,000 net per annum plus GST. The properties are being sold through expressions of interest.
"That area is quite popular where there's very limited opportunities to buy or even lease properties," Mr Tran said.
"The two adjoining buildings and are both first class in engineering-style workshops.
"To have this level of enquiry shows the strength in the confidence that people have in our industrial market."