Attractive Adelaide beachside investment sold at 4% yield

JLL has sold a fully leased commercial property at 6 & 8 Moseley Street, Glenelg for $5 million at a yield of 4%, reflecting the ongoing demand for the popular High Street retail precinct.

Situated in the heart of the beachside suburb, 6 & 8 Moseley Street is situated on two titles with a combined land holding of approximately 1,300 square metres and features a wide frontage of over 30 metres to Moseley Street, rear access from Milton Street and valuable on-site parking.

JLL Sales Executives Simon Hilmgard and Claudia Brace brokered the sale.

Mr Hilmgard said the property is situated in the heart of the beachside suburb, with a site area of 1,300 square metres offering significant redevelopment potential being zoned for development up to five levels (STA) and is currently fully leased generating strong income.

“This is the lowest vacancy along the strip since 2018 and demand for property in the area will be further supported by the completion of the $50 million luxury hotel development on the corner of Jetty Road and Colley Terrace and the resurgence of international tourists,” he said.

Recent JLL Research supports the positive demand story after finding that the vacancy rate along Jetty Road is at its lowest point since 2018 on the back of increasing inbound tourism and improved discretionary retail spending post-COVID.

Consumer spending growth in the ‘restaurants, cafes and takeaway food’ category recovered significantly since its COVID-19 lows with annual trade growth reaching 20-year high levels in the category with rolling annual retail trade growth increasing 17.3% in May 2023.

The vacancy rate along Jetty Road – one of Adelaide’s most popular retail strips – has decreased to 7.3% over the last six months from 9.7%.

The positive demand from occupiers is also attributable to SA’s strong labour market and record high participation rates coupled with ongoing hybrid working which has increased local activity and pedestrian traffic.

Mr Hilmgard said the property received a lot of interest during the marketing campaign and the sale outcome was a great result for all parties.