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Brisbane Industrial Market Overview - Sept 2017


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Highlights:

Whilst large-scale demand remains focused on new stock demand for existing properties has improved, particularly for cost-effective space.

For existing stock, face and effective rents have shown recent growth. Boosted by significant pre-commitments, new supply in 2017 has absorbed a significant amount of the current land bank, triggering further increases in land values and the search for new englobo sites.

Investment demand is strong with core assets remaining preferred, although scarce to come to the market. Underlying land value can now sometimes offset leasing risk in the value-add space.

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