Our client wanted a long-term hold — a quality commercial asset in a location where capital growth was being driven by real infrastructure spend, not speculation. They wanted strong tenants on secure leases, a clean income profile from day one, and a property that would appreciate materially over time as the surrounding precinct developed. The brief was clear: acquire something well-located, well-tenanted, and positioned to benefit from the kind of structural change that lifts values over a five-to-ten year horizon.
We focused on the Sunshine Coast — specifically the Maroochydore CBD, where the Queensland Government had designated a Priority Development Area and a $2.5 billion greenfield city centre was actively under construction. Office vacancy in the precinct was sitting below 4%. The new CBD was pulling government, professional services, and corporate tenants into the area, and quality office stock was in short supply. The thesis was straightforward: acquire a well-tenanted whole-floor office in the heart of this growth corridor, hold it, and let the infrastructure do the heavy lifting on the capital side. The income would cover the hold. The location would drive the growth.
We identified a 583m² whole-floor office on a prominent corner block in the Maroochydore CBD — part of a modern four-storey building adjacent to the Big Top Shopping Centre, within walking distance of the Ocean Street dining precinct and the Maroochy River. The property was fully leased to three established tenants on long, well-structured leases generating a combined net income of roughly $234,000 per annum.
Each tenancy included its own reception, open-plan offices, meeting rooms, and kitchenette. The building itself had been regularly refurbished and came with 26 secure undercover car parks in the adjoining multi-storey car park — a significant asset in a precinct where parking is increasingly scarce. It was a clean acquisition. Strong income, quality tenants, no vacancy risk, and a location that ticked every box on the capital growth thesis. We secured it at $3.46 million on a 6.76% yield.
This is a buy-and-hold acquisition — the kind of asset that earns its place in a portfolio by doing exactly what it was acquired to do. The income is secured by three quality tenants on structured leases with built-in rent reviews and long option periods. The property sits at the centre of one of Queensland's most significant urban development programmes, with the new Maroochydore City Centre rising around it. As the precinct matures and office demand continues to tighten, the capital position strengthens. The client is collecting strong, reliable income while the surrounding infrastructure does what infrastructure does — drive values up over time.
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