Insights into the Brisbane Commercial Market

An update into what's been happening in the Brisbane Commercial Market

Below is a brief summary of observations on what’s been happening around town in the Brisbane commercial and industrial sales and leasing market.

Brisbane Commercial

SOUTH CITY FRINGE

(West End, South Brisbane, Woolloongabba, East Brisbane, Coorparoo, Buranda, Stones Corner and Kangaroo Point):

  • These suburbs continue to be popular with developers and the conversion of industrial property to residential property is ongoing
  • Leasing stock across this area is very limited with very few sites over 500m2 currently available. Businesses requiring office/warehouse accommodation significantly greater than 500m2 usually have to look elsewhere.
  • It continues to be difficult to locate tenants for city fringe offices. However, owners who are prepared to meet the market are achieving reasonable rates
  • Vendors are currently achieving good prices

EASTERN CORRIDOR

(Bulimba, Morningside, Murarrie, Hemmant, Tingalpa, Lytton, Wynnum and Mansfield):

  • Construction on access to the Port of Brisbane is ongoing and is greatly improving the area
  • There are a range of properties available for lease with sizes ranging from small office/warehouse units to large industrial facilities, some providing around 20,000m2 of quality warehousing space
  • Some large spaces available for lease are offering generous incentives for the right deal
  • The last year has seen quite strong leasing activity across Morningside and Murrarie
  • Properties under 2,000m2 are in short supply in these suburbs

NORTH CITY FRINGE

(Albion, Fortitude Valley, Herston, Newstead, Bowen Hills, Enoggera, Newmarket, Kelvin Grove, Stafford, Windsor and Milton):

  • These suburbs generally feature largely remnant industrial properties which will likely be progressively redeveloped into mixed use projects
  • There are very few major industrial sites in these suburbs
  • There is a reasonable selection of smaller industrial units available in this area

NORTHERN CORRIDOR

(Banyo, Geebung, Northgate, Virginia, Zillmere and Brendale)

  • Leasing activity has recently been modest in these suburbs
  • There are few properties for sale in these suburbs so investment stock is generally quickly snapped up by investors
  • These suburbs can accommodate businesses of varying sizes and budgets
  • There are a number of good quality properties available for lease between 1,000m2 and 6,000m2
  • Developers are maintaining a good balance between large and smaller stock, ranging from 100m2 to 10,000m2 and are pricing these properties at a very competitive rate

brisbane commercial

WESTERN & LOGAN MOTORWAY CORRIDORS

(Oxley, Darra, Richlands, Sumner Park, Seventeen Mile Rocks, Wacol, Carole Park, Heathwood, Larapinta, Parkinson, Crestmead, Hillcrest, Eight Mile Plains, Browns Plains, Redbank and Swanbank):

  • The Western Corridor continues to be one of the most active and important industrial areas in south-east Queensland
  • A recent trend for this area has seen small industrial units being used for sporting activities (e.g. boxing studios or gyms)
  • There are some very good buildings available for lease in these suburbs at very competitive rates

BRISBANE SOUTH

(Acacia Ridge, Willawong, Coopers Plains, Salisbury, Archerfield, Yeerongpilly, Tennyson, Moorooka, Fairfield and Sherwood):

  • These suburbs continue to offer a range of small, medium and large buildings that cater to a range of business needs
  • Pricing in these suburbs is competitive and there are some terrific buildings available for lease (particularly in Acacia Ridge and Rocklea)
  • Despite the generally slow leasing market, there are good deals being done in these areas. Owners who are prepared to spend even modest sums on refurbishing/improving their vacant properties generally receive greater interest from tenants and arguably higher rents
  • The scarcity of investment stock in these suburbs is resulting in high demand for quality industrial property
Brisbane Commercial

M1 CORRIDOR

(Yatala Enterprise Area, Yatala, Stapylton, Ormeau, Berrinba, Beenleigh, Slacks Creek, Rochedale, Meadowbrook, Shailer Park, Underwood, Logan, Loganholme, Kingston, Woodridge and Springwood):

  • Yalata Enterprise Area continues to be one of south-east Queensland’s premier industrial areas with many major businesses calling this area home. The area still has many hectares of industrial land suitable for development
  • The proximity to the M1 and the types of property available in these suburbs mean it has widespread appeal and is suitable for most business activities

 

This post was written with reference to a King & Co “King’s Counsel” magazine article published  in Issue 43, 2016/17. You can access the full article and read more articles in the online version of the magazine available here.

 

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Insights into the Brisbane Commercial Market