Market Round-up...
Matthew Eckford On the north side, modern buildings are being leased for over $100m², with older style premises starting from $75m². An approximate 690m2 unit at 2/32 Northlink Place, Virginia leased for $125m². As for land, there has been a shortage of serviced and zoned land sales because there is so very few vacant land sites left in the areas of Geebung, Virginia & Zillmere. A vacant 3,019m2 of General Industry land at 70 Telford Street, Virginia sold for nearly $315/m2. Future industrial land ranges from $75 to $100 per m² depending on the size and location. Smaller unit developments continue to be constructed throughout the region. Paradigm 2 achieved pre-commitment sales for several of the 16 units. Northlink Place Business Centre, comprising of 6 units, was 50% pre-committed prior to construction commencing. Larger freestanding buildings are also being constructed and leased prior to completion. Sunshine Estate on Zillmere Road, Zillmere has seen several 1,500m2 to 3,000m2 new buildings constructed and leased to tenants near $100/m2. There are several sites being developed over the next 12 months offering new larger facilities for lease. In general, within my area there have been a limited number of larger facilities sold, with most of the completed sales transactions being off market. There is still strong purchaser demand for freehold properties and land. Leasing is consistent with buildings offering cheaper rental rates being been taken first before newer modern facilities at higher rental rates.
Jonathan O’Dwyer At present, the rental market for industrial properties in the South East Corridor range from $80-135m², depending on the age and location of the buildings. There are a number of major warehousing and bulky retail developments in Underwood and Slacks Creek recently completed, or near completion, that are pushing the ceiling prices of industrial units to record leasing rates for the area. The sale market for industrial properties currently ranges on average between $1400-1700m² for high visibility new tilt panel constructions. The Platinum Business Park near the Pacific Motorway in Slacks Creek is listing $1850m² for their soon to be completed office/warehousing tilt panel units, the highest amongst the new commercial unit developments for the area. Industrial and commercial land is difficult to find in the already developed Underwood and Slacks Creek areas at present, which is reflected by current prices. Large parcels of serviced and non-serviced industrial land are currently available in the developing Kingston and Meadowbrook areas at rates between $150-300m². The Compton Road district in Underwood is soon to change the area’s image as new bulky goods retail developments are soon to be completed. These sites will join the districts trend of attracting big retailers such as Bunnings Hardware and the WOW Superstore. There are two retail/bulky goods warehousing constructions in Underwood nearing completion. A new office park is currently in the initial stage of construction in the Compton Road precinct in Underwood, which will offer a total of 6,170m² of office space across four buildings. The new IKEA store on the Pacific Motorway in Slacks Creek is soon to be completed with the new 29,200m² site replacing the old 7,500m² store in Springwood.
Jordan Mann Rental rates within this area start from $80/m² for secondary stock, and range from $110-$125m² for new stock. There is a 50 hectare new industrial construction site under way in Larapinta Serviced and zoned land ready to build on is going for $280-$380/m² depending on location and size. Construction activity includes several smaller unit developments which continue to be constructed throughout the region. Lease back options are still very attractive for companies as land and building prices remain so high. There is a lot of sales and leasing activity at present, with numerous developments due to commence in the near future. Ben Somerville The market in Banyo and Northgate is currently going through a substantial change. Previously regarded as merely a neglected industrial region, it has now seen a metamorphosis into an impressive modern industrial precinct that is soon to rival the most productive industrial areas in Queensland. Many small industrial parks and freestanding facilities are currently being developed in the area, which will in turn trigger the upgrade and create a busy and profitable industrial precinct. With all of these changes taking place, land is becoming very scarce and very expensive with recent record prices recorded at $650per m². The Northgate Banyo area is now set up for easy access to all airports, seaports and only about 10km to the city, making this a very user friendly alternative to congested industrial areas. The area is situated next to four on/off ramps to the Gateway Motorway, allowing ready access north and south. With new opportunities continually arising, investors and owner/occupiers are buying at every chance, and with prices at the top of the market many investors and owners are taking great profits and looking to invest in opportunities that are sure to arise in the coming months. With many professionals moving out of the city into the city fringe, there is currently a demand for corporate offices in the Bowen Hills region. With the completion of the new tunnel, this area will also be readily accessible for commuters on the Southside.
Steve Bousfield The city fringe is seeing steady growth and continues to grow as a strong alternative to the CBD. Quality commercial spaces in Fortitude Valley start at $230 per m² and can grow to as much as $350 per m². Parking will always be scarce as land is at such a premium. A building with the benefit of good parking can attract as much as $110 per space extra. With such demand for city fringe space from both owner occupiers and investors vacancy rates are at a low. Although due to many investors buying vacant property just to achieve a foothold in Brisbane’s commercial market, we are finding that there is stiff competition in the leasing department. Also take note that due to the slight rise in interest rates, more owners are thinking about lease backs. This is a great way to secure the long term future of your business but free up capital and expand the business. Daniel Fay Within this area rental rates have seen industrial units leased for $80m² –$130m², commercial units at $130m²-$150m², and offices leased for $200m²-$350m². Land rates are increasing rapidly. Available land in Kingston, Meadowbrook and Yatala Enterprise ranging from 2000m²-138,313m², are priced between $150m²– $310m². |
Chase's sales and leasing experts give their rundown on the current Brisbane commercial property market
Chris Cash Rental rates in the Western Corridor start from $80 per m² for secondary stock and are approaching $110 per m² for new modern buildings. A new development at 29 Industrial Avenue, Wacol is under construction. This development comprises four large units ranging from 2,651–2,979m² and is looking to achieve $110 per m². Rates for serviced and zoned land ready to build on have risen dramatically in the last 12 months. One 4,000 m² block on Wolston Road, Sumner sold for $440,000 + GST just over a year ago, and has recently sold for $220 per m² or $880,000 + GST. Another sale to note was a vacant 4,000m² site on Queensland Road, Darra, which sold for $1.2 million or $300 per m². Demand for future industrial land has continued and recent sales have ranged from $95-$120 per m² depending on size and location. Construction activity in the area includes:
Three separate unit developments in the tightly held Darra industrial precinct are now under construction
Given the extremely rapid rise in land and building rates, many companies are continuing to capitalise on lease back opportunities. In the last 6 months properties which have been sold and leased back have provided opportunities for investors as the majority of existing investment stock remains tightly held. In general, there is very healthy sales and leasing activity at present, with several developments due to commence in the near future, notably Bremer industrial estate and Wacol army barracks land subdivision.
Luke Shaw Eagle Farm has seen continued strong interest from investors and owner occupiers across a range of property types. This is due in part to the shortage of available stock and the limited number of new developments. Another factor has been the healthy returns that industrial and commercial real estate have provided over the last five years, in terms of both income and capital gains. The record prices that have been achieved on Kingsford Smith Drive and Lavarack Avenue have lifted vendors’ expectations of what is achievable, however, inflation and interest rate fears may see an easing of these enthusiastic prices. A basic freestanding office warehouse of around 800m², with approx 80m²-130m² of office, should achieve a minimum net rent of $85/m². A brand new warehouse of tilt slab construction and quality finish should lease for approximately $115/m²-$125/m². Showroom quality developments, such as Cavcorp’s Cargo Business Park, are expected to achieve net rents of $220/m² when they are completed in late 2006. This is due to their high office component and showroom finish. Pinkenba prices have exploded in the last twelve months as many of the last remaining Future Industrial sites on the northern side of the Trade Coast area have changed hands. Market expectations for this type of raw land range from $120/m² to $145/m². The state government has resumed most of the land that it requires for the duplication of the Gateway Bridge. The final design hadn’t been released at the time of writing, however the environmental impact statement and the preliminary design documents have been available for some time. All property owners and business owners in the area should familiarise themselves with the planned works. The roads leading up to Luggage Point have received some well-needed attention from the Brisbane City Council, and with the proposed recycled water pipeline looking like a goer, Pinkenba will be forever changed from orchards and cattle grazing to industry and activity.
Gino Allen In Mansfield rental rates have picked up, new buildings are starting at above $110/m², whilst older premises are starting around the $80/m² mark. A reasonably new building of approximately 310m² in Mansfield was leased for precisely $100/m². Whilst in Coorparoo rental rates are starting at $120/m² for new facilities, and $90/m² for older facilities. As for land in Mansfield and Coorparoo, there is a major shortage and as such, there has been little to no commercial land sales in either suburb. At present there are two developments under way in Mansfield, one consists of a series of small industrial units, and another of medium sized industrial units. These are being leased at approximately $130/m². Brand new units and buildings are not lasting long, with only one unit remaining available after construction at 140 Wecker Road at Mansfield, and almost all units pre-committed at a development in Devlan Street. In Coorparoo there is a small amount of shift occurring with an office in Clarence Street recently being sold for $500,000. In summary, Mansfield is very tightly held and there has been little to no major facilities sold or leased. There has been a small amount of shift in moving which is starting to pick up. In Coorparoo there is a reasonable amount of activity which is also starting to pick up, with a lot of leasing shifts and a small amount of property transacting. Overall, we are at a period when the marketing is starting to pick up and the next few months should provide increased activity.
Tony Law The recent Government land release in Lytton has seen prices of $350m², while industrial land sales are surpassing $400m². Land sites are evaporating due to demand being higher than supply. Modern buildings are achieving lease rates of $100-130m², while older facilities range between $75-90m². Recent leases include:
Recent Sales include:
Construction activity is booming with several tilt panel developments currently in progress in Murarrie alone. At present the emphasis is on free standing properties for sale. In recent months I have fielded more enquiries to purchase on lease properties than actual enquiries about the lease itself, so clearly it becomes more apparent that we are in a sellers’ market at present. The Metroplex remains very tightly held with owners reluctant to sell their investments, while any facilities that become available for lease are quickly snapped up. OPD Lennon has started the beginning stages of development on Lytton Road across from the Metroplex entrance on their latest project the Gateway Office Park. Sale and leaseback options are still favourable as an opportunity to free up capitol and expand the business, or to re-invest elsewhere. |
Inside this edition you can read valuable articles on:
The second edition of Chase Commercial’s printed Platinum magazine will be in the marketplace as of late November. Platinum is a bi-annual publication targeted directly at corporate leaders, commercial property investors and developers, predominantly within the South East Queensland market. It is one of Queensland’s most targeted commercial property magazines. Platinum’s first edition was so successful it resulted in the gross sales of over $25 million of property, and the leasing of 10,000m² of floor space. Of the properties featured in the first edition,92% were sold or leased following the circulation of the magazine. The next Platinum will also feature a smattering of articles celebrating all that is great about our Queensland way of life. Platinum provides the perfect arena for you to lease or sell your commercial property, or advertise your business to the commercial property industry, however, space is very limited and fast running out. If you are interested in finding out more about advertising in Platinum magazine, contact your Chase Commercial Sales and Leasing Consultant. |
