 Asset Class: | Office |
 Price: | $ 555000 |
 Net Yield: | 7.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Central, Convenient Office with Ample Natural Light – 7.03% Net Yield with Secure Tenant</b><br><br>Offered for sale is an office investment located on the ground floor of a modern strata building constructed in 2016, only 200m from the train station. With a net lettable area (NLA) of 94sqm, the property is currently leased to Family Tree (WA) Pty Ltd, a reliable tenant in the childcare sector who uses this office for administrative purposes. The lease expires in Nov 2026, followed by a 2-year option (until 2028). The lease generates a net rent of $39,000pa ($414/sqm) plus outgoings and GST (including management), with all outgoings—including management fees and taxes—fully covered by the tenant. The fitout will be transferred to the buyer.<br><br>Whilst the lease rate at $414/sqm sits above market evidence between $350-370/sqm, it is compensated by the higher net yield of 7%+. There are merely two office spaces advertised for lease in this central location, pushing up demand.<br><br>This property represents an excellent opportunity for investors seeking a stable and low-maintenance asset. Its modern build, secure tenancy, access to natural light and public transport make it a great choice for those looking to expand their portfolio in a sought-after area.<br><br><br><b>What We Like About This Asset</b><br><br>- Attractive starting net yield of 7%<br>- Ample access to natural light due to wide street frontage (high rental appeal)<br>- Established tenant in childcare sector (using office for administrative purposes)<br>- Fitout transferred to the buyer<br>- Lease includes a First Right of Refusal upon tenant’s request > shows the commitment of tenant to this location<br>- 200m from train station (high rental appeal)<br>- High growth area – a lot of construction underway in Central Cockburn, increasing residential density<br>- High scarcity in office spaces for lease in this location<br>- Built in 2016 > depreciation benefits evident
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<b>The Office Market</b><br><br>Cockburn Central, WA, hosts a diverse range of businesses, primarily within professional services, healthcare, education, and retail. The area features a growing number of medical practices, consulting firms, and IT service providers, catering to the expanding residential population. Additionally, it includes retail offices supporting local trade and finance-related businesses, such as mortgage brokers and accountants. The mix of industries reflects the suburb’s strategic location and its accessibility via major transport routes.<br><br>The office market in Cockburn Central is characterized by a moderate-to-high development density. Recent years have seen an uptick in mixed-use developments, blending commercial, residential, and retail spaces. Most office buildings are medium-scale, with new projects focusing on efficient land use and sustainable designs. The proximity to public transport and amenities has driven a cluster effect, increasing density while maintaining functionality for tenants.<br><br><b>Lifestyle & Population</b><br><br>Cockburn Central, WA, has emerged as a vibrant urban hub offering a convenient and connected lifestyle. With amenities like the Cockburn Gateway Shopping Centre, Cockburn ARC, and excellent public transport via the Mandurah train line, it caters to both residents and visitors. The area promotes community integration through its walkable design, thriving dining scene, and recreational facilities, including the Fremantle Football Club's training center. Its lifestyle appeals to young professionals, families, and retirees alike.<br><br>The suburb has seen rapid population growth, increasing from 695 in 2011 to approximately 1,260 by 2024. Future projections remain optimistic, with the Cockburn Central Town Centre project set to accommodate around 2,000 residents and 1,800 workers. This development includes 1,100 apartments and an expanded commercial space of 21,500 square meters. As Cockburn Central evolves, it continues to establish itself as a dynamic and sought-after community in Perth's southern corridor.<br>
Additional Location Information File<b>The Family Tree</b><br><br>The Family Tree is a privately owned early learning center and out-of-school hours care facility in Western Australia.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="http://www.thefamilytreewa.com/"><u>http://www.thefamilytreewa.com/</u></a><br>
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Under the leases all outgoings are 100% recoverable, including management fees and land tax.
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Rental Comparable: 37/12 Junction Boulevard, Cockburn Central – 94m2 - $414m2 (incl 1 car bay) 9E/817 Beeliar Drive, Cockburn Central – 77m2 - $376m2 7E/817 Beeliar Drive, Cockburn Central – 89m2 - $354m2 2-3/4 McGrath Road, Henderson – 153.1m2 - $359m2 4-5/4 McGrath Road, Henderson – 219.4m2 - $351m2 Sales Comparable: 37/12 Junction Boulevard, Cockburn Central – 94m2 - $5,904m2 38/12 Junction Boulevard, Cockburn Central – 99m2 - $5,859m2 7E/817 Beeliar Drive, Cockburn Central – 89m2 - $5,899m2 Unit 3, 20 Signal Terrace, Cockburn Central – 30m2 - $6,967m2
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<b>Purchase Price:</b> $555,000 (negotiated)<br><b>Initial Asking Price: </b>$575,000 - $600,000 (agent appraised)<br><b>Current Net Rent:</b> $39,000pa + Outg + GST (incl mng)<br><b>Current Net Yield:</b> 7%<br><b>NLA:</b> 94sqm (excl car bay)<br><b>Exclusive Car Bays:</b> 1 car bay<br><b>Purchase Rate per sqm:</b> $5,904/sqm<br><b>Net Rent per sqm: </b>$414/sqm (incl car bay)<br><b>100% Outgoings Recoverable:</b> Yes<br><b>Outgoings (per sqm): </b>$14,199pa (excl mng) ($151/sqm)<br><b>Age of Asset:</b> approx. 9 years (2016)<br><b>Any Incentives in the Lease: </b>None<br><b>Are Seller & Tenant Related:</b> No<br><b>Vacancy Status:</b> Tenanted – expect re-letting time of around 2-4 months in current market (convenient location 200m to train station)<br><b>Flood Zone:</b> No<br><b>Bushfire Zone:</b> No<br><b>Contamination: </b>No<br><b>Right of Refusal:</b><span style="background-color:rgb(255, 255, 255);"> The tenant has the first right of refusal but they have expressed not to purchase this unit so early on in their lease.</span><br><br><br><b>Asset Composition: </b><br>• Ground floor strata<br>• Access to ample natural light (side street frontage)<br>• 94sqm of NLA<br>• 1 exclusive car bay + access to undercover visitor car bays<br>• Fully fitted with floor coverings, partitions, ceiling treatment, lighting, painted walls, power points, and air conditioning (transferred to buyer)<br><br><b>Infrastructure Level: </b>Tier 1<br><br><b>Key Highlights:</b><br>• Ground floor strata<br>• 94sqm of building area<br>• Built in 2016 > depreciation benefits evident<br>• Current net rent $39,000pa + Outg + GST (incl mng)<br>• Lease expiry Nov-2026 + 2-years (2028)<br>• Annual increase at 4%, market review (Nov 2026)<br>• 100% of outgoings paid by tenant (incl mng)<br>• Tenant - Family Tree (WA) Pty Ltd<br>• Located in Cockburn Central District, 200m from train station
