Automotive retail assets emerge as hot commercial real estate
Australia’s automotive sector is set to take pole position as a commercial real estate winner.
Industry experts call this one of the country’s “most overlooked essential service sectors”, now fuelled by a rising number of cars on the road.
Tyre operators, servicing centres and parts suppliers are the beneficiaries of more than 21.6 million registered vehicles in Australia – a statistic that continues to climb due to population growth and an annual net overseas migration of approximately 300,000 people.
The demand for servicing, parts and maintenance remains consistent during economic downturns and shows no signs of slowing, even as EV sales soar.
Drivetrain diversification and EV weight fuel workshop longevity
Fleet size matters more than drivetrain mix for auto service providers, according to CBRE’s June 2026 Automotive Intelligence Report.
“EVs still need regular servicing, including tyres, brakes and suspension, lights, window wipers and air-conditioning,” the report states.
“EVs also wear tyres faster than petrol equivalents due to their additional weight and instant torque. With the average vehicle staying on the road for 11.2 years, a car bought today will still be returning to a workshop into the late 2030s.”
Agents are seeing surging demand for automotive assets with significant sales around the country, particularly in Queensland, which accounts for 44 per cent of the national transaction volume since 2024. The report attributes this significant share of sales to strong population growth across South East Queensland and the continued expansion of car-dependent suburbs.
Automotive is fast becoming a darling of commercial real estate, said Beau Coulter, CBRE’s senior director, capital markets – private wealth.
“Whenever they do come into market, they’re really, really hotly contested,” he said.
“The majority of the time, a lot of them are transacting at between $2 and $3.5 million, which is a sweet, affordable price point in our market.”
Coulter points to the April sale of a Jax Tyre and Auto in Munno Para, Adelaide, which attracted 30 registered bidders and sold over reserve at $2.7 million, representing a net return of 4.22 per cent.
In nearby Gawler, a mycar Tyre and Auto sold for $3.41 million last month, reaping a net return of 5.33 per cent.
In the Geelong suburb of Armstrong Creek, Victoria, a Bridgestone with a 15-year lease sold for $2.76 million, yielding a net return of 4.7 per cent.
And in Garbutt, a suburb of Townsville, an Auto Masters sold for $1.74 million in April with a net return of 4.89 per cent.
ASX and NYSE-listed covenants anchor defensive long-term leases
The automotive sector has a typical 10-year net lease with fixed annual rent increases of between 3 and 4 per cent. This comes with the security of share-market-listed tenants, including major players NYSE-listed Repco, ASX-listed Super Cheap Auto, ASX-listed Autobarn, and ASX-listed Midas.
“This sort of product – long lease, national tenant – people see that as strong security, I think with what’s going on in the world,” Coulter said.
“A lot of people are looking for premium A-grade stock that they can just set and forget, don’t have to worry about. So, I think that this sort of product will probably even become more sought-after.”
