Logan Motorway Region Emerging in Tightly Held Brisbane Industrial Market
The Logan Motorway region has become an emerging precinct in a tightly held Brisbane institutional industrial market, according to Ray White Commercial.
Ray White Commercial Head of Research, Vanessa Rader, said sales in the plus 5000 sqm industrial market in Brisbane during the first six months of 2016 were over $210 million with turnover low due to limited stock.
“Sales were down 27.94 per cent on the same period last year though the first half of the year has been traditionally slow with significant transactions in the second half of the year,” she said in the Between the Lines +5000 sqm Brisbane Industrial Sales Market report September 2016.
Vanessa Rader said yields across Brisbane’s southside ranged between 6.75 per cent to 8.0 per cent with the Australian TradeCoast (ATC) continuing to yield the most aggressive yields, averaging 7.25 per cent.
“The Logan Motorway region is an emerging precinct which has come more into favour in recent times as an alternative to ATC,” she said.
“The yields are lesser than the southern precinct which currently averages 7.75 per cent. While there has been significant. compression during the early 2014 to 2015 period, during 2016 yields have remained stable.”
Ray White Commercial Queensland Associate Director Industrial Transactions, Dan Costello, said investment into the Brisbane industrial market has been robust in recent years.
“These larger over 5,000 sqm properties which feature a quality tenant or long term lease covenants, have been highly sought after by a range of investors looking to diversify funds, take advantage of low interest rates, increase portfolio or enter this market,” he said.
“These investors are mostly local buyers, trusts and funds with some enquiry from foreign buyers looking to enter the Australian property market, given the lure of stable returns particularly for single tenant assets and modern facilities.”
Ray White Commercial Queensland Director Industrial Transactions, Graham Norris, completed one of the major sales of the year with a reported $65 million transaction of an industrial complex at the Port of Brisbane to Logos Property.