Corner Warehouse Investment | $2,050,000 | Net Yield: 6.34% | QLD

This secure tenanted industrial investment represents the calibre of strategically positioned, turnkey assets Rethink Investing continues to secure on behalf of clients seeking quality income-producing opportunities within North Queensland's robust commercial market.

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Positioned in the highly sought-after inner-city suburb of South Townsville, this corner warehouse at 36 Allen Street delivers an exceptional blend of industrial functionality and high-specification office amenities, situated on an elevated, flood-free corner site of 1,012 square metres.

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The property comprises approximately 710 square metres of insulated warehouse space complemented by 90 square metres of brand new, high-specification office fit-out featuring a designer kitchenette, boardroom, private offices and open-plan work areas with premium bathroom facilities, delivering a professional working environment suitable for discerning tenants across various industrial sectors.

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Recently upgraded with a new roof, full insulation and complete electrical rewire, this property represents a turnkey investment requiring minimal ongoing capital expenditure. The warehouse configuration offers dual street frontage with roller door access from both Allen Street and Tully Street, providing excellent operational flexibility for a variety of industrial uses subject to council approval.

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Currently tenanted under a new 2-year lease with one 1-year option for renewal, the property delivers a net income of $130,000 per annum plus GST with the tenant responsible for all outgoings. This attractive net lease structure provides investors with secure, hassle-free income and a straightforward, predictable income stream without deductions for property outgoings.

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The property's strategic positioning delivers exceptional connectivity, located just minutes from Townsville CBD, the Port of Townsville—one of Australia's largest bulk ports—Queensland Country Bank Stadium, and The Strand, Townsville's iconic beachfront esplanade. This prime location provides convenient access to the region's key infrastructure, amenities and major arterial routes, supporting ongoing tenant demand within the precinct.

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South Townsville functions as a highly desirable inner-city suburb benefiting from proximity to major employment centres and infrastructure. Townsville serves as the unofficial capital of North Queensland, functioning as a major service centre for the region's mining, defence, agriculture and tourism industries, underpinning strong economic fundamentals and continued commercial property demand.

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The property is zoned Low Density Residential with existing Low Impact Industry use rights, adding flexibility to future development or repositioning options for astute investors seeking potential value-creation opportunities beyond the current tenancy arrangement.

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With a purchase price of $2,050,000 and total cash required of $867,350 (including 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $130,000 and a return on equity of 5.15% in pure cash flow terms. When accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 17.31%, 22.17% and 29.47% respectively, demonstrating compelling returns for long-term wealth creation.

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With secure net income, recently completed capital improvements eliminating near-term expenditure requirements, premium office amenities, dual street access functionality, and strategic positioning within Townsville's tightly held inner-city industrial corridor, this acquisition reflects the calibre of turnkey industrial assets that Rethink Investing continues to secure for clients.

About Rethink Investing

• Australia & New Zealand's largest and most experienced commercial buyer's agency
• $7 billion+ in commercial property secured for clients
• Exclusive access to 70% off-market opportunities
• Specialists in high-yielding commercial property investments

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Secure your next high-performing industrial asset with our expert team.