Leasing activity across the Brisbane Industrial market (over 5,000sqm) has continued at a steady pace into 2018 with demand still strong particularly by logistic and transport users.
Absorption over the 12 months to April 2018 has been recorded at over 285,000sqm, slightly down on last year’s results which reflect the reduction in speculative development keeping vacancies moving downward. Some speculative development however remains vacant which serves to caution other approved developments to hold until commitment is sourced.
Becoming increasingly obvious is the continued flight to quality with prime assets in greater demand as many occupiers’ exit their existing premises for newer or purpose built facilities. This is likely to result in a greater divergence between prime and secondary rentals, however over the last six months these have remained stable with the Logan Motorway and Australian TradeCoast remaining the locations of favour.
With over $4.3billion committed to infrastructure improvements between Gold Coast and Brisbane together with the Bruce Highway; Brisbane is sure to remain an industrial region of choice by both tenants and investors.