Increased enquiry, reduced supply and competition intersect in late 2016, according to the latest Colliers International Industrial Research Report.
The Brisbane industrial market remained steady throughout the first half of the year as leasing and sales transactions were limited. However, there is a growing sense that urgency will return to the market in the near term as increased enquiry, reduced supply and competition intersect in late 2016.
According to Simon Beirne, State Chief Executive of Queensland at Colliers International, as the development pipeline slows, the number of properties available for purchase or lease remain limited and a number of requirements are concluded.
“Recycling of capital is also becoming a consideration for owners as investment grade opportunities are scarce. It is expected that these factors will intersect towards the end of this year and into 2017.
“Leasing activity remained subdued in early 2016 as the majority of deals completed fell in the 3,000sqm - 4,000sqm range. Activity accelerated for larger deals in the closing stages of the second quarter as number of major briefs were released to market.
“The vacancy rate across Brisbane has increased to 17 per cent from 13 per cent back in March 2016, but a number of large deals are currently underway and a wave of leases are due to commence in the coming months.”
Leases for a total of approximately 110,000sqm are due to commence across a number of deals for a mix of buildings and locations including; Bevchain, Schweppes, Beaulieu Carpets, MJ logistics, Super Amart and Whites Group.
The most active area has been Gateway South and Logan Motorway corridor where Goodman, Logos, Frasers and Dexus have all had substantial leasing success in the last quarter. These leases reinforce the desire of occupiers to be located in the Logan Motorway precinct or other areas with direct access to Brisbane’s major road network.
Click here to read the full Industrial Research Report.