Top three commercial areas to invest in Brisbane

Industry experts reveal Brisbane’s best commercial areas for minimal outlay and top-notch yields.  

Brisbane can boast a soaring commercial outlook especially when it comes to increasingly popular industrial properties.

The yet-to-be-confirmed 2032 Olympic Games is also inspiring office investors to purchase properties in areas earmarked for development.

1. Inner north and inner west

Close to Brisbane Airport, the Port of Brisbane and major motorways, the city’s inner northern suburbs provide a great combination of both industrial and office spaces.

Premium suburbs to invest in

• Eagle Farm
• Fortitude Valley
• Newstead
• Teneriffe
• Albion
• Milton

Described by Brisbane City Council as a global export hub, Eagle Farm’s Australia TradeCoast includes the master-planned industrial precinct, TradeCoast Central.

This area stretches across both sides of the Brisbane River and out to the Port of Brisbane and the city’s airport.

“TradeCoast Central is really one of the premier areas but it’s owned by one family who doesn’t sell too much there,” Peter Turnbull of CBRE Queensland said.

However, even with this in mind, the industrial and logistics state director said the inner north area had plenty of high demand industrial properties available.

As well, the industrial market was unlikely to go backwards as long as interest rates remain low.

“I think it’s going to be going pretty good all this year and next year, so there’s really no bad areas in Brisbane,” Mr Turnbull said.

“Eagle Farm would be dearer and more expensive (than other areas) as you’ve got less options and it’s a very tightly held area with less land as it’s been developed for such a long time.

“You still can buy stuff for on $1-$2 million but you won’t get as much bang for your buck because Eagle Farm is in demand.”

Brisbane’s commercial properties, particularly industrial and office precincts, are experiencing plenty of popularity. Picture: Getty

Meanwhile, offices in Fortitude Valley, Newstead, Teneriffe and Albion have gone from strength to strength, according to Nick Wedge from Colliers’ Brisbane City and Metro sales team.

Mr Wedge said these urban renewal precincts were enjoying particular popularity due to public infrastructure such as the 10.2km, Cross River Rail project, which is still under construction.

He added that Albion and its industrial-chic ambience was also being earmarked for major investment for the 2032 Olympic Games.

“The Olympics is not even locked in … but people are already buying in certain precincts based on the Olympics,” Mr Wedge said.

“We sold 72 Costin St, Fortitude Valley, which is probably 100-150 metres away from the RNA Showgrounds to a local private doctor, who was eying it off for that particular reason.”

The property sold for $3.9 million or $7,692 per square metre, which Mr Wedge said was an unheard-of price for the suburb.

Neighbouring Albion also features plenty of mixed-use possibilities from cafes to microbreweries.

Meanwhile, Brisbane’s inner-western suburbs, Milton has experienced a stunning resurgence in the last 12 months, according to Mr Wedge.

This success comes after years of the low-lying, riverfront suburb leaving a “bad taste in buyers’ mouths” after the 2011 floods swamped the area.

“I’ve done $40 million of sales in Milton in the last year, so it’s fantastic to see it come back onto the radar,” he said.

He believes the reason for the suburb’s renewed popularity, regardless of its flood possibilities, is its location just 2km from the CBD as well as its bus, train and ferry routes.

22 Marie Street, Milton, recently sold for $8.35 million with a 5.28% return. Credit: Colliers Brisbane

“Milton is a hotspot now and there are people now investing there that traditionally wouldn’t have looked at it five years ago,” he said.

“We’ve sold buildings for over $6,000 per square metre, which is fantastic and unheard of for Milton.”

Mr Wedge said the suburb had consistently experienced more than 6% yields with essential properties such as childcare enjoying 5% returns.

2. Inner south

Several other suburbs in this region also have the 2032 Olympics to thank for their increasing popularity with commercial investors.

Premium suburbs to invest in

• Woolloongabba
• West End

Expected to be the centrepiece for the Olympics, Woolloongabba has few commercial properties available, particular offices, Mr Wedge said.

But keen investors were ready and willing to pay “crazy” prices, with a former ANZ Bank at 37 Ipswich Rd recently selling for $5.305 million, or the equivalent of $12,395 per square metre.

Industrial investors were also keen to move back into both Woolloongabba and neighbouring West End, according to Mr Turnbull.

“Industrials are getting shoved down and pushed out to areas on the periphery,” he said.

“But online guys such as Amazon want to get back in close so that their travel time to deliver to you is within an hour.”

Mr Turnbull said this perspective could see inner-city suburbs change in the future to accommodate industrial hubs again.

3. Outer west and outer south

As with many cities, Brisbane’s peripheral fringes are a commercial highlight for industrial precincts.

Premium suburbs to invest in

• Wacol
• Richlands
• Darra
• Heathwood
• Larapinta
• Crestmead
• Yatala

The outer western suburbs, including Wacol, Richlands, Darra, Heathwood and Larapinta, are industrial strongholds along with southern fringe areas such as Crestmead and Yatala.

The latter areas especially are home to prime logistics warehouses for “big user” distribution centres such as Coles, Woolworths and similar.

Brisbane’s inner south and west suburbs are home to “big user” warehouses and logistics centres. Picture: Getty

As such, Mr Turnbull said these Logan Motorway corridor suburbs, which connected the Western and Ipswich Freeways to the Pacific Motorway and Gold Coast, was where the big money was, with smaller investors often following in its wake.

“When the big guys start going to certain locations, it’s a good indication for all the other occupiers as to how good the region is, so they’ll definitely follow,” he said.

Mr Turnbull explained Brisbane’s inner south and western areas also featured less traffic congestion, fewer off-ramps and on-ramps, and not as many traffic lights, which allowed networks to get to customers quickly.

Industrial properties in these regions were available for very good prices, he said, with $1-$2 million purchasing a strata development or a unit in a complex with 10 or 15 smaller tenancies.

As for yields, Mr Turnbull said prime properties of any size across Brisbane could enjoy a low 4%-5% return.

“If you can buy something for 4% in the smaller end, you’d be doing pretty well,” he said.