A new drive thru Starbucks in Queensland selling at a record yield of 4.2% set the tone of commercial property agent Burgess Rawson’s final Portfolio Auction of the year in Melbourne today.
Director Raoul Holderhead said today’s auction was the largest and most successful since COVID, seeing a 95% success rate with 21 properties sold for a combined value of $57.5 million.
“To end such an extraordinary year on this high note is testament to the resilience of the commercial property investment market.”
The event was back at Crown Melbourne after several months of virtual auctions due to COVID-19 restrictions.
“While the turn out at Crown was fantastic, we had a large number of investors bidding via phone and online, including interstate and internationally,” said Mr Holderhead. “This really demonstrates how buyer behavior has adapted over the course of the year and we have certainly accommodated that, offering various methods to watch the auction and bid.”
Highlight sales included a trio of new properties at Berrinba in Queensland, all selling separately well above reserve.
Mr Holderhead said that today’s auction concluded a memorable year, with Burgess Rawson adapting its signature Portfolio Auctions to meet changing COVID-19 restrictions.
“We held our first remote auctions this year which saw investors embracing phone and online bidding with great results,” said Mr Holderhead. “And today, we had our first property ever sold via online bidding - a Sparkles Car Wash at Berrinba from a bidder in Brisbane.”
In another first, a Burgess Rawson agent received bids via We Chat with the bidder based in a quarantine hotel in Beijing.
“In a marathon auction, they successfully secured the United fuel station in Cranbourne North for $7.3 million,” said Mr Holderhead.
“In fact, bidding was robust throughout the whole day. A Red Rooster restaurant at Rockhampton in Queensland was fiercely contested with no less than 90 bids, including 59 $1,000 bids to achieve a $3,040,000 sale price and a yield of 5.65%.”
The event concludes a highly successful year, with Burgess Rawson the most active agent for freehold commercial investment property in Australia.
“Since COVID, Burgess Rawson has sold $574 million worth of property across 184 sales,” said Mr Holderhead.
“Essential service sales comprised 80% or $457 million. We are very proud of this result; especially as other agents were strongly advising against bringing property to market until next year. We knew that there was high demand for premium essential service investments and our results this year have certainly proved that.”
Burgess Rawson’s first Portfolio Auction for 2021 will be held on Wednesday 24 February. For further details visit burgessrawson.com.au.