The Brisbane Industrial market continues to show favourable results surrounding take up with a number of large commitments securing during 2017.
Close to 330,000sqm has been recorded in absorption across this market with some significant changes in the tenancy type during the 12 months to October 2017. Encouraging is the strong demand led completions and take up of existing stock which has assisted in the downward movement in vacancies which have been historically high over the past few years. A flight to quality for many occupiers has resulted in a growing divergence between prime and secondary stock, with rents showing drastic downward momentum for secondary grade stock, while the South market continues to be out of favour by occupiers resulting in prime rental reductions also. Logan Motorway and the Australian TradeCoast continue to be the locations of choice with rents continuing their rebound growing over the last year.
Over the last 12 months (to October 2017) we have seen 328,623sqm of new leases over 5,000sqm; while a historically there has been a large proportion of these are pre–commitments or for speculatively developed space, encouragingly this period sees 49.62% within existing premises which has aided in the continued reduction in vacancies. The make–up of these tenants however has
shown some change compared to prior years with a move back to Consumer and Manufacturing users after a large movement by Transport/Logistic users. Some of the larger
commitments this period have been within existing premises and non‐traditional space users including Chemist Warehouse taking up 25,860sqm in Eagle Farm and Winning Group in Hemmant for 18,279sqm while the Australian Federal Police have absorbed 11,705sqm at Pinkenba within close proximity to the Airport.