 Asset Class: | Show Room |
 Price: | $ 910000 |
 Net Yield: | 5.74 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Pre Market |
<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Showroom Investment Opportunity in Blue-Chip Location with High Owner-Occupancy</b></span><br><br><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">This exclusive off-market opportunity presents the chance to acquire a showroom in a highly sought-after location, where a strong concentration of owner-occupiers typically supports robust capital growth.</span></p><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">Demand for showroom space in the area far exceeds supply, with an acute shortage of leasing options. As of this report, only one showroom is available for lease in O’Connor and its surrounds. Furthermore, no other showrooms are currently on the market for sale in the wider area, highlighting the scarcity of stock and the potential for yield compression as market conditions tighten.</span></p><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">The property comprises a 224sqm fitted retail space with a shopfront, kitchen and bathroom situated within a complex of 18 units. At a purchase price of $910,000, the investment delivers a net commencing yield of 5.74% after management fees. It is securely leased to Jacked Supplements until July 1, 2028, with a five-year option extending to 2033.</span></p><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">Market evidence indicates a fair lease rate at $251/sqm. Built-in annual increases of CPI + 2.5%, allow rental income to grow at an accelerated pace—quickly enhancing the net yield over time.</span></p><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>What We Like About This Deal</b></span><br><br><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ attractive built-in increases of CPI+2.5% (this will see the yield after mng jump to 6%+ in 2026; 6.4% in 2027…)</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ surrounded by national retailers</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ high owner-occupier demand > immense shortage of showrooms for lease or buy > high potential for yield compression and strong rental growth</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ low outgoings at $89/sqm (fully recoverable, except mng fee</span></p><p style="list-style-type:disc;"><span style="color:rgb(0, 0, 0);background-color:transparent;">+ easy access from Stock Rd and South St with convenient parking</span></p>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>The Market</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">O'Connor is a predominantly industrial suburb that hosts a diverse array of retail businesses. Notable retailers include major electronics and appliance stores such as Harvey Norman, Retravision, and Fridge & Washer City. The suburb also features specialty stores like O'Connor Lawnmower & Chainsaw Centre, Total Tools, and Direct Seafoods O'Connor. </span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Ownership and Capital Growth</b></span><br><br><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">O’Connor is a well-established industrial hub south of Perth, known for its high proportion of owner-occupiers, creating a stable market with strong capital growth. Its strategic location near Fremantle and major transport routes makes it highly sought after by businesses looking for long-term premises.</span></p><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">The scarcity of available stock has led to strong demand and limited opportunities for investors, as properties are tightly held. Many small to medium-sized enterprises prefer ownership to leasing, driven by business confidence, cost control, and equity-building opportunities.</span></p><p style="padding-left:0pt;"><span style="color:rgb(0, 0, 0);background-color:transparent;">With low leasing stock, rental rates remain well-supported, while capital values continue to appreciate. This high owner-occupier presence reduces speculative selling, ensuring resilience in the market and strong investment potential.</span></p><br><span style="color:rgb(0, 0, 0);background-color:transparent;">O’Connor is located in the City of Fremantle which is projected to grow from 34,399 people (2025) to 44,549 by 2046 (increase of 29.73%).</span><br><p style="background-color:transparent;"><br></p>
Additional Location Information File<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Jacked Supplements & Jacked Supplements Barber Co</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">Jacked Supplements is a retailer specializing in health and fitness supplements. The business extended their services to barbering, targeting young males interested in both physical fitness and grooming. They currently operate in three locations in WA, including the one at 3/378 South Street, O'Connor. Renovation works are currently underway at the O'Connor location, to copy the business model they run in Victoria Park - a combination of fitness supplements and barber services that has seen a quite positive response.</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;">The business doesn’t have a website - only social accounts.</span><br><p style="background-color:transparent;"><br></p>
Initial Term:
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Security Info:
All outgoings recoverable under the lease, except for management fees.
Additional Financial Information FileInitial Term:
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Security Info:
Rental Comparable 3/378 South Street, O’Connor - 224m2 - $251/m2 2/396 South Street, O’Connor - 206m2 - $413/m2 (incl comm. kitchen) 6&7/8 Simms Road, Hamilton Hill - 171m2 - $350/m2 6/54 Rockingham Road, Hamilton Hill - 103m2 - $272/m2 360 Marmion Street, Melville - 100m2 - $350/m2 Sales Comparable 3/378 South Street, O’Connor - 224m2 - $4,063/m2 7A/378 South Street, O’Connor - 303m2 - $4,323/m2 9/378 South Street, O’Connor - 484m2 - $5,579/m2 2/378 South Street, O’Connor - 452m2 - $3,761/m2 3 Hulme Court, Myaree - 141m2 - $4,965/m2 34 Hulme Court, Myaree - 258m2 - $4,690/m2
Offer To Purchase:
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<span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Purchase Price: </b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">$910,000 </span><span style="color:rgb(0, 0, 0);background-color:transparent;"><i>(negotiated)</i></span><br><p style="background-color:transparent;"><br></p><p style="background-color:transparent;"><br></p><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Initial Asking Price:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $930k - $950k</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Listing Status:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Off-Market</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Current Base Rent:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $56,242pa + Outg + GST (excl mng)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Less Management:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $4,000pa + GST (allowance)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Current Net Rent:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $52,242pa + Outg + GST (incl mng)</span><span style="color:rgb(0, 0, 0);background-color:transparent;"><b> </b></span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Exclusive Car Bays:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Shared Parking</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Current Net Yield:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> 5.74% (incl mng)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>NLA:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> 224sqm strata</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Purchase Rate per sqm</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;">: $4,063/sqm</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Net Rent per sqm:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $251/sqm (excl mng)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>100% Outgoings Recoverable:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No (retail lease)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Outgoings (per sqm):</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> $19,987.68 (excl mng) ($89/sqm)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Age of Asset:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> 1986</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Any Incentives in the Lease:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Lessor’s Rent-Free Period: As per the lease.</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">1 April 2023 to 30 April 2023 (lapsed)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">1 April 2024 to 30 April 2024 (lapsed)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;">1 April 2025 to 30 April 2025 (lapsed by settlement)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Are Seller & Tenant Related:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Re-letting Period:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> expect 2-4 months in the current market, sought-after owner occupier market with very little showroom & retail space for lease</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Flood Zone:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Bushfire Zone:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Contamination:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Asset Composition: </b></span><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">224sqm Survey strata with shop front</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Concrete Tilt-Up construction</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Common parking</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Kitchenette</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Private toilet</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:normal;"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">current renovation works by tenant to fit out as barber & fitness store (target audience male fitness)</span></p></li></ul><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Infrastructure Level:</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Tier 1</span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Tenancy Highlights:</b></span><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Jacked Supplements Barber Co</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">$52,242.11pa + Outg + GST (incl mng ay $4k pa + GST)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Lease Expiry 1 July-2028 + 5-years (2033)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Annual CPI increase + 2.5%, market review at option (2028 and 2033)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);"><p style="list-style-type:disc;display:inline;"><span style="color:rgb(0, 0, 0);background-color:transparent;font-weight:normal;font-style:normal;">Located 13km South of the Perth CBD</span></p></li></ul><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Agent Questions:</b></span><br><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Who does the fitout belong to?</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> Retail fitout to tenant, kitchen and bathroom to seller</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Why is the owner selling?</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> The owner is divesting assets due to age and differing needs (co-owner and I)</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Is the tenant related to the owner in any way?</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> No, the tenant is not related to the owner</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Are mng and taxes recoverable?</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> All costs recoverable, except for management fee</span><br><span style="color:rgb(0, 0, 0);background-color:transparent;"><b>Does the property need any maintenance work?</b></span><span style="color:rgb(0, 0, 0);background-color:transparent;"> The centre is very well maintained with ongoing upgrades. My brother and I are actively involved in its management.</span><br><p style="background-color:transparent;"><br></p>
