The market for suburban retail centres continued its strong finish to 2024 with a north Brisbane centre selling under the hammer for $2.3 million with RWC Retail’s Pablo Routledge, Lachlan O’Keeffe and Michael Feltoe.

Located at 264 Rode Road in Wavell Heights, the 220sqm entry-level investment was the final in a portfolio of four retail centre’s sold on behalf of a private investor who was eager to capitalise on the market's appetite for these investments.

The vendor’s confidence paid off, with the campaign once again generating a significant volume of enquiry, which Mr O’Keeffe said should give confidence to landlords heading into the new year.

“The sale continued a major trend in 2024 where we are seeing a large volume of first-time entrants to the commercial property market,” he said.

“The influx of these buyers—combined with a return of established investors to the market—saw 473 enquiries generated through the campaign, highlighting the sustained demand for well-positioned suburban retail assets.”

The fully leased centre achieved a yield of 5.24 per cent and a building rate of $10,455/sqm, placing it among the five best retail centre results in Brisbane for the year.

The centre’s tenancy profile, comprising tenants that were established at the centre for almost 20 years, contributed to its strong appeal, reinforcing investor appetite for low-maintenance, income-generating assets in resilient locations.

“Ultimately, these investors are seeking passive, defensive investments, and this centre offered that in abundance,” Mr Routledge said.

“Just three tenants, a 3.96-year WALE, and all outgoings recoverable is exactly what these buyers are continuing to seek, and we have a number of underbidders eager for similar investments in 2025.

“Given the level of competition in this campaign, we expect continued momentum in the new year as buyers look to secure opportunities in a tightening market.”

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