Surfers Paradise building leased to the Queensland police for sale
The sale of a Surfers Paradise commercial property comes with one of the city’s most stable tenants – the Queensland Police Service.
Located in the heart of Surfers Paradise’s famous entertainment precinct just a thong’s throw from the sand, the two-level property has almost 1000 square metres spread over two levels.
”The Surfers Paradise police station is a rare State government-tenanted, long-term investment opportunity in the heart of the Surfers Paradise entertainment precinct fronting Orchid Avenue,” said Ray White Commercial Gold Coast’s Steven King
The Police Service had leased the building for the past decade and it currently generated base rental income of about $480,000 a year, Mr King said.
Ryan Kohler, commercial director with valuers Herron Todd White Gold Coast, said the building’s unique tenant brought with it commercial peace of mind.
”A police station in the middle of Surfers Paradise, they are always going to need a presence there. The chances are they’re probably not going to move any time soon,” he said.
Another upside was the 4 per cent annual rent increases, which were superior to many other commercial tenancies on the Gold Coast, Mr Kohler said.
The building that houses the police station is in a prime location in the heart of Surfers Paradise. Photo: Supplied
”Over the course of the next five years, you’re going to get some pretty decent rental growth,” he said.
”The rental market’s been pretty dormant over the past while really. If you can get those guaranteed 4 per cent increases every year that’s definitely a positive with CPI running so low.”
The only downside for some potential buyers looking for the ability to redevelop the site was that the building was strata titled, he said.
”The rent’s always going to get paid, you have a super-strong tenant, you don’t have to worry about graffiti obviously – but the strata-title tenure, it just takes away that blue sky for 30 years down the track.”
However, this wasn’t a ‘deal-breaker’ and the property would still be hotly contested, he said.
