It’s been reported that there is a limited availability of industrial stock, particularly in the southern section of the south precinct.
Some agents are also reporting limited land opportunities for large-scale facilities. This is expected to place pressure on yields for industrial property in the future.
There is apparently limited stock of A-grade quality warehouses in the south-west corridor of Brisbane for both tenants and owner-occupiers
The Port of Brisbane precinct has been an area of constant interest for large occupiers seeking A-Grade facilities. This has been credited to the investment in road infrastructure over the past five years as it has provided arterial access from the port to the Gateway Motorway, Brisbane Airport, and the Brisbane CBD.
The average Brisbane prime-grade yields are currently between 6.25% and 7.25%
Second grade yields across the greater Brisbane industrial market sat between 7.95% and 8.6% (as at March 2017). This represented a tightening of 25 basis points over the six months to March, reportedly due to the fierce competition for prime-grade assets.
Recent deals from around Brisbane –
Ashai Beverages has signed a deal to lease an 18,788 square-metre facility in Heathwood
Avery Dennison has pre-committed to 4986 square metres at Berrinba
National Tiles has pre-committed to 13,159 square meters at Berrinba
Franklyn Blinds has pre-committed to 8042 square meters at Rochedale
Super Amart have pre-committed to 50,240 square meters at Rochedale
PepsiCo has signed on to the Export Motorway Estate for an initial 3-years for 20,000 square meters
Coca-Cola Amatil has cashed in on the industrial property boom by selling a major Brisbane facility to fund manager Charter Hall Group for $156 million
Brisbane commercial property update 2: Retail
It’s been reported that Brisbane’s $3 million Queens Wharf development will span almost 20% of the CBD. On top of the retail offerings, the development is planning to include 2000 apartments and 1600 hotel rooms. In total the development is billed to cover 12ha of prime riverfront land and include 6 towers.
Brisbane commercial property update 3: Office
Co-working spaces are rising in major office markets like Brisbane due to popularity with tenants
The Brisbane CBD office market is tightening but there has still been an uplift in demand for office space, which remains strong compared to other quarters
There is limited office stock in Melbourne and Sydney CBDs so some commentators believe that this will drive prospective tenants to look elsewhere, such as Brisbane, for office space
Lendlease has officially kicked off construction on the world’s tallest engineered timber office building at 25 King St Bowen Hills. They are committing to increase the amount of renewable products it uses in the future.
Recent deals from around Brisbane:
Flexible office provider Christie Offices has expanded into co-working spaces after signing a 10-year lease at 240 Queen Street for 3501 square metres of office space across 3 podium levels
Lawson Air has secured a 3-year lease at 140 Wecker Road at Mansfield for 624 square meters.
You can find available commercial properties for sale and for lease in and around Brisbane city on our website.
Below is a quick snapshot of the National commercial property market performance for the last 4 quarters: