Gold Coast warehouses sell for $1.1 million over reserve in 'gangbusters' market

According to listing agent Thomas Clark, of Ray White Commercial Broadbeach, the buyer replied: “Not even for another $1 million.”

The hot auction of 53 Lawrence Drive, Nerang, showcased the strength of the Gold Coast industrial market, described by Mr Clark as “going gangbusters”.

“The market is that hot right now that the supply and demand situation is out of control,” he said. “Our population is growing and they’re not making any more industrial land.”

A major factor underpinning the surging demand for industrial assets is the continued migration north, with hordes of new residents moving to the beachside city and relocating their businesses.

Mr Clark took almost 200 interested parties through the Nerang property, a freehold asset on a large corner block.

“I would say 75 per cent were from interstate, looking to move here or just moved here,” he said.

But it was two locals who went head-to-head at the pointy end of the auction, conducted via phone and live stream.

After an opening bid of $2.5 million, five active bidders pushed the action to $4 million – well above the $3.4 million reserve. Bidding moved in mostly $25,000 intervals, with just the underbidder and buyer left by the $4.4 million mark.

The hammer came down at $4.5 million, with the property selling to a local business owner involved in recycling, who plans to occupy part of the premises.

“The buyer had been looking for four-and-a-half years,” Mr Clark said. “He told me afterwards he was willing to offer a little bit more.”

Mr Clark admitted it was “incredibly hard” to quote a price in the current market.

“It’s not my job to get someone a buyer; it is my job to get someone bidders,” he said. “Put them in a room and they’ll work it out themselves.”

The 3978-square-metre site was sold with multiple tenants – including All About Pumps Gold Coast, City to Sea Landscaping, Montana Transport and Harvey’s Towing – netting about $205,000 per year.

A major drawcard was the large hardstand at the rear of the property.

“Hardstand is very hard to find because most developers have taken advantage of it and built it out, but this property offered over 1900 square metres of it,” Mr Clark said.

“Hardstand is becoming more valuable than building space because people with heavy equipment need hardstand in well-located logistics areas. This is right on the highway – you just can’t get that anymore.”

The industrial market is flourishing in part due to struggles of the retail sector, with some tenants now searching for exposure beyond traditional shopping centres.

“Freehold industrial is the flavour of COVID and the reason behind it is you’ve got an array of businesses that can operate,” Mr Clark said. “You can have noisy businesses, showrooms, and retail.