Toowoomba missing $30m in available commercial buildings
MULTIMILLIONAIRE investors are lining up to buy a piece of Toowoomba's commercial landscape - only problem is there's not enough to sell to them.
That's the view of McGrath's Drew Camm, who believes the Garden City is short about $30 million in tenanted buildings in the CBD and surrounding suburbs.
Mr Camm said he had plenty of investors from Melbourne and Sydney eyeing off Toowoomba as their next hunting ground, but was struggling to produce enough properties.
"The demand for tenanted investments is outstripping the supply - I just don't have the stock available," he said.
"I've got six people who want to spend $2 million each on a tenanted investment of around 7 per cent yield, and I don't have a seller.
"Three of those (investors) are cash only - just money in the bank."
Mr Camm said investors were looking at large buildings with existing tenants, hoping to earn a seven per cent yield after costs and overheads were factored in.
Would you like to see more interstate investment in Toowoomba?
This poll ended on 16 April 2018.
Yes, it brings more money to town.
No, I want to see locals buy those properties.
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"The interest in Toowoomba is good because they get a higher yield than in Melbourne and Sydney," he said.
"I spent the day with two investors (on Wednesday), who have $10 million each, they flew up from Melbourne for the day to see me, and then they flew back.
"The great thing about the Toowoomba commercial market is it doesn't have huge highs and lows, like the Gold Coast.
"Toowoomba is just a gentle, steady increase."
Mr Camm said several property owners could be feeling cautious, and were intentionally holding onto properties longer.
"I'd say about $30-$40 million (we are missing)," he said.
"Some people are still sitting on them, and it might be time for them to sell."