Insights & News | News |
Queensland’s industrial market hits new heights
Queensland’s industrial market hits new heights
11 Oct 2021| News |
650 words
By: Matthew Frazer-Ryan, Property Director at TMX

Increasing land sale prices, significant compression in investment yields and industrial facilities being snapped up at record rates has created a highly sought after and tightly held industrial property market in Queensland.  

In the past 12 months, there has been more than 562,000 sqm of industrial property uptake in Greater Brisbane’s five key industrial precincts – the Northern Corridor, Australia TradeCoast, Western Corridor, Logon Motorway Corridor and the Yatala Enterprise Area. This is nearly double the 10-year rolling average of circa 300,000 sqm in the same regions.  

In addition, there is a further 567,000 sqm of occupier requirements currently looking for 5,000 sqm+ facilities across Queensland’s industrial precincts, and we are currently working on a collective requirement of 183,000 sqm for our clients, as they race ahead with rapid growth and expansion plans. 

While a large part of the demand is triggered by population growth and e-commerce uptake, we are also seeing a number of organisations looking to drive efficiencies by consolidating numerous sites into larger, highly automated facilities. The trend towards new and more modern industrial premises continues to drive the ‘flight to quality’ trend over the past 3-4 years. 

One example is Coles, who worked alongside TMX to build a 66,067 sqm highly automated high-bay distribution centre with Goodman at their Redbank Motorway Estate, Ipswich. The new facility will serve more than 200 stores across Queensland and is the main distribution centre for Coles entire operation in the state. 

Furthermore, as a result of a surge in consumer spending on white and brown goods since the start of the pandemic, appliance manufacturer Winnings Appliances has tripled its footprint in Brisbane and committed to a new 45,000 sqm facility in Wacol in the city’s western corridor.  

Land Supply – Tightly held and getting tighter 

Industrial zoned development sites greater than two hectares are getting taken up quicker than ever before, and while the development community is bolstering its future landbanks, demand continues to outstrip supply, particularly in the owner occupier sector. 

The imbalance of supply and demand is especially felt in the tightly held areas of the Northern Corridor and Australia TradeCoast precinct, with the bulk of industrial zoned land controlled by the Airport and Port of Brisbane with a smaller portion owned by long term private landowners and a selection of institutional developers. 

The majority of future built form supply and speculative development currently under construction is located in the South East and West, namely the Logan Motorway Corridor, Yatala precinct and greater Ipswich region with more than 198,000 sqm of speculative prime grade industrial stock on track to be delivered into the market by the end of Q1 next year.  

Know your requirements, get prepared and act quickly  

While we hope to see more prime grade availability in the coming months, the soaring demand in Queensland industrial market isn’t likely to slow down. 

At TMX, we’re on track to double our live requirements in the next six months – we are also seeing a significant increase in demand for larger, more sophisticated warehousing solutions. The ability to future proof facilities to either accommodate semi or complete automation in the future is driving a focus on key design requirements to enable this immediate or staged investment. 

When it comes to looking for industrial space in Queensland, businesses need to start the process earlier than usual. Previously, we would look at relocation time frames of 12 to 18 months, but now a minimum timeframe of between 18 to 24 months is necessary to secure the most relevant site on the best commercial terms. 

We are seeing more and more occupiers put sophisticated data analysis into their property requirements and search criteria, driving more specific building requirements and associated infrastructure services to accommodate the property function.  

As land supply continues to tighten for larger and contiguous land parcels, it is even more important that occupiers act promptly to secure the sites that will benefit their operations into the future.  

Matthew Frazer Ryan, TMX Global executive
Matthew Frazer-Ryan, Property Director at TMX
Matthew Frazer-Ryan has over 23 years of experience in the industrial property market to TMX and specialises in Brisbane’s industrial market having completed some of the most prominent sales and leasing transactions within Brisbane.
Take control of your future
Get in touch to make your next
big move happen today.

More insights & news

Industry insights
Commercial real estate portfolio management – are you asking yourself these questions?
Readmore
Industry insights
Decentralisation of distribution centres to unlock faster delivery times
Readmore
Industry insights
Everything you ever wanted to know about conducting a sale-and-leaseback
Readmore