Berrinba industrial precinct has experienced unprecedented tenant and investor demand this year, with high-profile occupiers committing to over 81,000sqm across 5 major deals in the last three months. Additionally, two of the biggest industrial investment transactions in South East Queensland year to date have occurred in the precinct.
“If major occupiers continue to take up land at this rate, the remaining 35ha currently available is likely to be absorbed within the next 24 months,” said Matthew Frazer-Ryan, National Director of Industrial at Colliers International who is marketing several leasing opportunities in the precinct on behalf of the institutional owners.
“Berrinba has been hamstrung for several years whilst the Logan Enhancement Project has been under construction, and now that this major infrastructure upgrade has been finalised the Berrinba region has become a highly sought after and competitive industrial market due to a great mix of institutional owners in the precinct, all hungry to secure tenants and develop stock on long term leases. Owners that are currently active in Berrinba and have development land available include Frasers Property, GPT, Charter Hall, Logos and ESR.
“To ensure future supply needs are met engagement with Logan City Council is imperative to manage the delivery of employment generating land. Also, bringing forward the funding and financial assessment of the long mooted Park Ridge Connector will further enhance connectivity and the flow of freight and commercial traffic through the precinct.
“Logan Motorway industrial areas are very tightly held and now that the $512 million Logan Enhancement Project has been finalised this has opened up arterial road access and has dramatically improved connectivity to the area. This is a critical reason why occupiers are moving and expanding further in the precinct,” Mr Frazer-Ryan said.
The five major leasing deals which have been secured in the last three months’ have lease terms ranging from 5 to 10 years and rents ranging from approximately $110-$120 per sqm subject to building design and specification.
The deals include: Wing taking up 17,800sqm within Ascenda’s spec building at 1-7 Wayne Goss Drive; Ceva committing to 20,800sqm within Frasers Property’s estate at 125 Gilmore Road; DHL leasing 20,600sqm within GPT’s Wembley Business Park; Phoenix Transport taking up 9,999sqm within Frasers Property’s SouthWest1 at 43-61 Kellar Street; and Huhtamaki committing to 12,635sqm at Wayne Goss Drive also within the SouthWest1 estate.
And finally, two of the biggest industrial investment transactions in South East Queensland year to date have occurred in the surrounding areas of Parkinson, where a half-stake in the Coles tenanted cold storage distribution centre was sold for $134.2 million, and in Crestmead where Metcash tenanted distribution centre was sold for $183.6 million.