North Brisbane, QLD
Dual Tenancy, Single Strategy
A freestanding, dual-tenanted commercial property delivering a strong net yield of approximately 5.7% with immediate upside. One tenancy is leased below market rates, presenting the opportunity to unlock additional income, align lease expiries, and capture a forecast equity uplift of around $400,000 at a 6% cap rate once rents are reset to market.
The tenant has since re-signed at the market rate $300/m². The current net return is $135,000 with a cap rate of 5.75% - 6%, or $2,250,000 - $2,350,000. As a result, this strategy paid off very well for the client, making the most of the rent reversion play.
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Opportunity
Positioned in a high-visibility commercial corridor, the property benefits from steady customer traffic, excellent accessibility, and surrounding national-brand tenants. These fundamentals create strong demand from occupiers and long-term growth prospects.
For investors, the standout opportunity lay in the front tenancy, which was leased below market benchmarks. Adjusting this rent to market levels would provide a direct uplift to net operating income and property value, without the risks associated with redevelopment.
CPI-linked reviews, straightforward tenancy structures, and achievable lease alignment strategies meant the optimisation plan could be implemented quickly and efficiently.
Outcome:
MCommercial conducted a comprehensive due diligence program, validating the under-rent position and quantifying the uplift potential once both tenancies averaged $275/m² Net.
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We developed negotiation strategies to reset the front tenancy to market.
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Explored options to align both leases for greater long-term flexibility.
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Benchmarked comparable sales and rentals to strengthen valuation and financing discussions.
By coordinating legal, valuation, and property management inputs before settlement, the asset was acquisition-ready with a clear post-settlement playbook.
The Benefits to the Purchaser:
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Secure current net income of ~$96,297 pa.
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Forecast equity uplift of ~$400,000 at a 6% cap.
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Stable national-brand tenants with CPI-linked growth.
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Exposure to a growth market supported by strong demographics and retail demand.
PROPERTY DETAILS
Type: Freestanding retail/showroom
Configuration: Two separate tenancies
Land Area: 1,479 m²
Net Lettable Area: 461 m²
Zoning: District Centre
Car Spaces: 17
Investment Features
Prime Brisbane Location: Positioned close to major retailers and amenities, just 24 km from Brisbane CBD, with easy access to the Bruce Highway and Gateway Motorway.
Under-Rented Front Tenancy: Front tenancy currently leased at $199/m² Net, offering a strong potential for rental uplift at lease expiry.
Significant Equity Uplift: Achieving an average $275/m² Net across both tenancies could unlock approximately $400,000 in equity at a 6% cap rate.
Desirable Commercial Hub: Located among high-profile retailers like Bunnings, Supercheap Auto, Repco, and Rebel Sports, ensuring strong tenant demand.
Strong Capital Growth Outlook: Ideal for investors seeking value-add potential in a growing Brisbane market.
The MCommercial Advantage
355
Business Partners in over 30 Countries
27
Years of Experience
MCommercial identifies and secures commercial properties as part of your strategic investment plan. focusing on rental reversion potential and capital growth. Through our detailed due diligence and negotiation expertise, we positioned the asset to deliver strong returns and long-term stability for our client.
This acquisition demonstrates MCommercial’s ability to uncover high-value investment opportunities and optimise asset performance through data-driven market insights and strategic lease structuring.
