Industrial real estate in Queensland is experiencing a significant uptick in investor activity, with total investment volumes in Brisbane reaching approximately $500 million so far in 2024.
This represents a notable 16% increase compared to the same period last year. Market conditions are poised to continue this upward trajectory, with volumes on track to surpass the $620 million that transacted in 2023. Currently, more than $300 million of assets are under due diligence, suggesting a strong pipeline of future deals.
The stabilisation of debt costs since late 2023 has been a critical driver of this resurgence, providing much-needed clarity on pricing and unlocking greater market liquidity.
With potential rate cuts and moderating bond yields expected over the next six months, investors are seeing a window of opportunity to capitalise on cyclical investment prospects.
According to Gary Hyland, Cushman & Wakefield’s National Director Capital Markets Logistics & Industrial – QLD, the value proposition in Queensland's industrial sector remains attractive, with market dislocation offering room for value growth before the anticipated yield compression cycle begins in 2025.
“Brisbane's industrial occupier market also remains robust, supported by ongoing structural trends and an undersupply of warehouse space. Over the past year, rental growth in Brisbane has averaged 13.2%, outpacing both the Sydney and Melbourne markets.
“In select infill locations, rental growth has been even higher, nearing 20%, highlighting the growing demand for well-located industrial assets” he said.
Reflecting the growing appetite for large-scale industrial opportunities, Cushman & Wakefield’s Gary Hyland, Morgan Ruig and Matt Richards. have been appointed to bring Rocklea Central, a high-profile industrial asset located at the strategic intersection of Ipswich Road and Grindle Road to the market via Expressions of Interest.
The 29,470 sqm* estate sits on 9 hectares across three titles at 65 Grindle Road, 1717 Ipswich Road and 1727 Ipswich Road and offers a diverse mix of 24 tenancies across 12 facilities, including office warehouses, cold storage, retail, and outdoor display and sales facilities.
Morgan Ruig, Director, Brokerage – Logistics & Industrial QLD said “Rocklea Central's strategic location near the Brisbane Produce Market and its direct access to the Ipswich Motorway have made it a popular choice for transport operators seeking additional hardstand space for truck parking.
“The estate has maintained consistently low vacancy rates due to its high-profile location, tenancy mix, and large hardstand areas. Currently, only one small tenancy remains available for lease, with the asset generating over $3,800,000 million per annum in income.”
Rocklea Central is one the largest infill opportunities with significant holding income providing a strong initial running yield and the low site cover provides the opportunity to further increase the GLA across the estate.
The estate has exceptional exposure to the Ipswich Motorway and is an iconic asset known to tenants and occupiers.
Matt Richards, Director, Brokerage – Logistics & Industrial QLD said, “Spanning over three titles, with pending short term lease expiries across two, the asset provides the opportunity for owner occupiers to secure functional buildings within a tightly held market. The shorter lease terms are also attractive to investors who are seeking immediate rental reversion which will better enhance returns.”
*Approximate
