Gold Coast industrial property boom sees shift to premium hybrid spaces

Ray White’s head of research Vanessa Rader says industrial property on the Gold Coast has been the choice for investors over the past few years. Picture: Supplied

The Gold Coast’s industrial property market has evolved from ‘big, dirty’ spaces to premium hybrid developments as investors and owner-occupiers compete for limited stock.

Ray White’s head of research Vanessa Rader said the Glitter Strip had been a market to watch, particularly post-pandemic.

“Across residential and commercial sectors, industrial property has been the choice for investors over the past few years, and there are so many reasons why,” Ms Rader said.

“Limited developable land, strong rental growth, tight vacancy, and the rise of owner-occupiers have all played a role.”

Ray White’s head of research Vanessa Rader, RWC Pacific Group’s Jackson Rameau and longstanding Gold Coast builder Gavin Darke.

While demand remains strong, Ms Rader said construction continued to be “the stumbling block” for many developers and investors.

Longstanding Gold Coast builder Gavin Darke, of Clarkes Design and Construct, has seen the industrial landscape evolve first-hand.

“Industrial is now the darling of the investment world,” he said.

“People are drawn to stability.

“You can purchase land, get approvals relatively quickly, and hit the ground running – that’s what draws a lot of investors to this asset class.”

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2/22 Crombie Ave, Bundall is on the market via RWC Pacific Group.

Mr Darke said that industrial assets, once seen as “big, dirty, loud, and noisy,” had matured. “We’re seeing a big increase in commercial-industrial hybrids,” he said.

“We’ve done everything from small mum-and-dad builds in the $1.5m range to large-format industrial developments for national and international brands.

“That entry-level price point has opened the door to a whole new cross-section of investors.”

For Jackson Rameau, who heads up RWC Pacific Group, the shift was not just financial but cultural.

“We’re literally sitting in an industrial precinct today, filming in this beautiful studio, something that used to only exist in CBD office towers,” Mr Rameau said.

“Buyers are now emotionally attached to these spaces.

“They can live nearby, have their trailer parked out back, and run their business from the same location.”

Gavin Darke says the Gold Coast still offers incredible value.

Ms Rader added the surge in rents has driven many businesses to buy rather than lease. “Owner-occupiers are often outbidding investors just to secure their space,” she said.

Mr Rameau agreed, highlighting the broader wealth effect.

“With housing values up nearly 100 per cent in the past five years, many people are buying a smaller apartment for living and an industrial unit on the side, rather than stretching for a big expensive house.”

Mr Darke said also pointed out the Gold Coast’s comparative affordability as a continuing drawcard.

“Sydney’s had its insane growth,” he said.

“The Gold Coast still offers incredible value, even if locals find prices hard to get their heads around.

“We’re really at the starting line – construction costs and land values will rise, and with them, sale prices too.

“But it all depends on local and state government supporting that growth.”

12/475 Scottsdale Drive, Varsity Lakes is on the market via RWC Pacific Group.

Mr Darke added that lifestyle and liveability continue to be key drivers.

“People move to places where they can make a good living and raise their kids near great schools.

“That’s what the Gold Coast offers, and we’re not making any new land, so density and build-up will be the next frontier.”

Having relocated from Western Sydney over a decade ago, Mr Darke said it’s been incredible to watch the Gold Coast mature.

“The same market pressures we saw in Sydney, tight labour, material costs, demand, are now happening here.

“And honestly, it’s the best place to live and do business.”