Queensland Commercial & Industrial Property Market Review - March 2022
The Brisbane industrial market has enjoyed a steady increase in demand from both tenants, owner occupiers and investors over the past 12 months. The openness of travel around the Brisbane area has been a large contributing factor to investors eyeing off tight yields in the Sunshine State.
The recent floods that have devastated some parts of Brisbane will continue to drive demand for properties that are not in flood affected areas. The hardest hit has been the central south suburbs, with Rocklea facing the brunt of the wild weather.
We expect to see the continued tightening of yields in long WALE flood free properties across all asset classes. Those that are in a position to sell their assets are looking at mid-term plans of liquidating at the top of the market and buying back in when interest rates inevitably rise.
Recent sales and lease transactions from FAL Property Group provide sound market evidence that fast turnaround, unconditional sales and long lease terms are still the trend of the market.
In light of recent weather events, we expect that more attention to detail will be taken when investors and owner occupiers look at purchasing sites, with significant decreases in value expected on properties that have been inundated.
The southwest industrial suburbs of Brisbane maintain some of the lowest vacancy rates in recent history. Facing much less water than what was seen in 2011, areas like Sumner and Seventeen Mile Rocks have continued to prosper in all size ranges.
Although a rocky start to 2022 for the people of South-East Queensland, the property market continues to show strength and we expect consumer confidence will remain high.
“The Brisbane industrial market has enjoyed a steady increase in demand from both tenants, owner occupiers and investors over the past 12 months.”