Logan Motorway emerges as Brisbane hot strip
The Logan Motorway region is fast becoming the precinct to watch in the tightly held Brisbane institutional industrial market.
According to Ray White Commercial head of research Vanessa Rader, sales in the plus 5000sqm industrial market in Brisbane during the first six months of 2016 totalled more than $210 million, with turnover low due to limited stock.
“Sales were down 27.94% 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 says.
However, Rader explains yields across Brisbane’s south side ranged from 6.75% to 8.0%, while the popular Australian TradeCoast continues to offer up the most aggressive yields, averaging 7.25%.
The Australian TradeCoast, or ATC, is a trade and industry region located at the mouth of the Brisbane River, about 6km from the CBD.
Meanwhile, the Logan Motorway – a 30km toll road between Ipswich and the M1 or Pacific Motorway at Loganholme, and the Gateway Motorway – is attracting increasing levels of interest.
This A-grade property currently for sale at Shailer Park currently returns about $323,850.
“The Logan Motorway region is an emerging precinct which has come more into favour in recent times as an alternative to ATC,” Rader says.
“The yields are lesser than the southern precinct, which currently averages 7.75%.
“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 of industrial transactions Dan Costello adds that investment into the Brisbane industrial market has been robust in recent years.
“These larger over-5000sqm 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 says.
Sites ranging from 5000sqm to 20,000sqm are available at Wembley Business Park.
“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.”
There are a plethora of properties presently on the market near the Logan Motorway, including Ray White Commercial’s listing of an A-grade, tenanted tilt panel property with a floor area of 2919sqm, located at 37-43 Commercial Drive, Shailer Park, and returning about $323,850 net.
Meanwhile, Savills is marketing the Wembley Business Park industrial/warehouse development at 356-358 Wembley Road, Berrinba. The new industrial business hub is situated on a 22ha site in close proximity to the Logan Motorway, with pre-lease and turnkey warehouse options from 5000sqm to 20,000sqm.
