Regional Queensland Commercial - Pros and Cons?

I'd like to hear from investors who own commercial in regional QLD - what are the pros and cons that I should think about.

I live in Sydney and commercial yields are fast approaching 4% or lower. I have engaged a buyer's agent and have been presented opportunities mostly in Queensland.

I missed out on a Brisbane industrial (~6.5%) and GC industrial (~7%) because the vendor changed their mind and wanted more $$$.

Recently I've been presented opporunities in Sunshine Coast and Fraser Coast. Naturally, the perception is regionals have a higher risk profile (lumpy market, longer vacancies, smaller investor market, etc) but the yields are much better (8%). One property presented to me (Hervey Bay) has a mix of tenants (car workshop, building materials supplier, home improvement installer, etc) at 8% net.

Thoughts? Pros? Cons?

 

Commercials works on very different principals.

You have a mix of tenants so that is a plus. I hope you have worked out the WALE, outgoings, Nything that need to be paid out by owner, tenants length of tenancy, previous history, financials, ongoung leases, etcetera.

Was your idea also to add value? Can you do that? Is rhat a buy and hold, etcetera.

If everything meets your criteria, then comes population growth, migration to regionals is a plus and sunshine coast is considered as regional when it comes to migration so the demand may be there even after covid.

Cheers