 Asset Class: | Office |
 Price: | $ 825000 |
 Net Yield: | 6.36 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Off-Market Refurbished Office Space at 6.36% Net Yield & Long Lease-Terms</b><br><br>Refurbished office spaces like this are increasingly sought after by both tenants and buyers, as the office market steadily returns to pre-pandemic norms. This particular unit stands out due to its prime location, just 700 meters from Daglish Train Station, and an impressive parking ratio of 1 bay per 30 square meters (5 car bays in total).<br><br>100% of outgoings, including management fees and land tax, are fully recoverable from the tenant, enhancing its appeal as an investment property. With a strong starting yield of 6.36%, this opportunity offers attractive returns.<br><br>The tenant, NKH Resources Pty Ltd, has been occupying the property since May 1, 2024. They have established roots in the building, as they also own a unit on Level 3, where they have operated for over a decade. Earlier this year, their expansion needs led them to secure long-term lease terms for this unit, with the lease extending through to April 2029 and including two additional 5-year options. This demonstrates their strong commitment to the location and its suitability for their growing business. NKH Resources operates in the financial advisory sector, an industry characterized by consistent demand and stability.<br><br>Another advantage of this property is its location outside the Department of Transport (DoT) Levy Zone. Unlike many inner-city properties, this space is not subject to the $1,280 annual car bay tax introduced to subsidize the free CAT bus services. This exemption makes the property even more appealing to tenants looking to avoid additional overheads.<br><br>The current lease rate is $250 per square meter, reflecting a fair market value with room for potential rental growth. Refurbished office spaces like this often command premium rents due to their increasing popularity and high demand. This property is not only a strategic location for tenants but also an excellent investment opportunity with strong fundamentals.<br><br><b>What We Like About This Asset</b><br><br>- Sticky tenant - they own a unit on the upper floor and have extended the area as their business grew with long lease terms, which shows strong commitment to this building<br>- Attractive built-in capital growth at 3.5% fix increases<br>- Refurbished office space in well-maintained building > increasing buyer and tenant demand<br>- Blue chip suburb with high socio-demographic profile<br>- Just outside of Department of Transport Levy (no fee for car bays) - this levy is used to subsidize free CAT buses in city center<br>- Walking distance to Daglish and Subiaco train station (high tenant appeal)<br>- 5 exclusive car bays (high 1 bay in 30sqm ratio) > bays in Subiaco typically sit above 1 in 50sqm<br>- Built in 2007 > depreciation benefits evident<br>
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?
<b>The Office Market</b><br><br>Subiaco is home to a diverse office market, with a mix of businesses spanning various industries. Prominent sectors include professional services (law, accounting, and consulting), healthcare, and creative industries such as design, advertising, and media. The area also houses a growing number of tech companies and startups, benefiting from its proximity to Perth's central business district. Additionally, Subiaco's office market attracts retail, hospitality, and education-related businesses, particularly due to its vibrant local community and easy access to transportation.<br><br>Regarding development density, Subiaco's office market features a moderate to high density of commercial spaces, primarily concentrated around the Subiaco town center. The area combines heritage buildings with modern office towers, providing a range of space options. Recent developments include mixed-use projects that integrate office spaces with residential and retail offerings. <br><br><b>Lifestyle & Population</b><br><br>Subiaco has evolved into a vibrant, sought-after suburb with a dynamic lifestyle, attracting young professionals, families, and retirees. Over the last few years, it has undergone significant urban development, particularly along its central Rokeby Road and Hay Street, where cafes, restaurants, and boutique shops thrive. The area offers a mix of modern apartments, heritage homes, and townhouses, as well as parks and proximity to Kings Park, making it highly desirable for those seeking a balance between urban living and green spaces. Its strong public transport links and walkability add to its appeal.<br><br>In terms of population growth, Subiaco has seen steady increases, driven by its revitalization and the development of mixed-use spaces. With continued urban renewal, including new residential towers and improved infrastructure, Subiaco's population is expected to keep growing in the coming years. The suburb’s proximity to Perth’s CBD, universities, and workplaces further boosts its attractiveness, ensuring it remains one of the city's top locations for both residents and investors.<br>
Additional Location Information File<b>Knight Financial Advisors</b><br><br>Since 1971, Knight has remained steadfast in our mission to ensure financial prosperity for all. By pairing our team’s genuine passion for growth with a laser-focused drive, we support businesses and individuals who strive for financial success. Our vision is long-term, leveraging the strength of our expertise and the relationships we have formed to help our clients achieve consistent short-term wins.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.knightgroup.com.au/"><u>https://www.knightgroup.com.au/</u></a><br>
Initial Term:
Security:
Security Info:
Under the leases all outgoings are 100% recoverable, including management fees. A lease and outgoings budget hasn’t yet been supplied by the agent yet - subject to offer acceptance but he assured that provided information is correct.
Additional Financial Information FileInitial Term:
Security:
Security Info:
Rental Comparable (Ground Floor Units) 4/100 Railway Road, Subiaco – 150m2 - $250/m2 + 5 car bays $250/bpm 17/100 Railway Rd, Subiaco - 363m2 - $309/m2 + 10 bays ($250/bpm) 329 Hay Street, Subiaco - 140m2 - $250/m2 + 7 car bays $160/bpm 1/330 Churchill Ave, Subiaco - 148m2 - $250/m2 + 2 car bays $250/bpm 10/21 Roydhouse St, Subiaco - 117m2 - $295/m2 + car bays $250/bpm 6/29 Hood Street, Subiaco - 69m2 - $250/m2 + car bays $250/bpm Sales Comparable (Ground Floor Units) 4/100 Railway Road, Subiaco – 150m2 - $5,633/m2 10/21 Roydhouse Street, Subiaco – 117m2 - $6,154/m2 B1, 431 - 435 Roberts Road, Subiaco – 135m2 - $5,889/m2 A4, 431 Roberts Road, Subiaco – 102m2 - $5,637/m2
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
days
Finance:
days
Settlement:
days
<b>Purchase Price:</b> $825,000<br>(a formal offer needs to be presented but the agent is confident this will be accepted)<br><br><b>Initial Asking Price:</b> $845,000 (6.2%)<br><b>Current Net Rent:</b> $52,500pa + Outg + GST (incl 5 car bays)<br><b>Current Net Yield:</b> 6.36% (incl mng)<br><b>NLA:</b> 150sqm / Ground Floor (strata)<br><b>Purchase Rate per sqm:</b> $5,633/sqm<br><b>Net Rent per sqm: </b>$250/sqm + car bays ($250/bay per month)<br><b>100% Outgoings Recoverable:</b> Yes, incl mng<br><b>Age of Asset:</b> 18 years (2007)<br><b>Are Seller & Tenant Related:</b> No<br><b>Re-letting period:</b> 2-4 months in current market. Refurbished office spaces are in high demand.<br><b>Flood Zone:</b> No<br><b>Bushfire Zone:</b> No<br><b>Contamination:</b> No<br><br><b>Asset Composition: </b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Ground Floor strata</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Wheelchair accessible</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">150sqm of NLA</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">5 exclusive car bays (4 undercover)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">fully self-contained - Includes kitchen/lunchroom, male and female toilets, shower</span></p></li></ul><br><b>Infrastructure Level:</b> Tier 1<br><br><b>Key Highlights:</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Ground Floor strata</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">150sqm of lettable building area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">5 exclusive car bays (4x secure undercover basement & 1x open car bay)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Built in 2007 > depreciation benefits evident</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Total Current Net Rent $52,500pa + Outg + GST (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Office Rent $37,500pa</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Car Park Rent $15,000pa</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Lease expiry 30 April 2029 +5+5y</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Annual increase at 3.5%, review at option (2029 and 2034); 3.5% increase also applies to car bays</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% of outgoings paid by tenant (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Car bays exempt from DoT Special Levy</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenant – NKH Resources Pty Ltd</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located 5km West of the Perth CBD</span></p></li></ul>
