The recent confirmation of a number of large commitments to space has improved market sentiment within the Brisbane region. However to date the general occupier demand has remained steady. Due to a number of factors including backfill space and some tenant contraction, the amount of available industrial space (over 3,000m²) has more than doubled over the past 12 months.
As a result of the extremely low vacancy levels of a year ago, there has been a strong supply response with 228,000m² of stock (over 5,000m²) completed during 2012 and 2013 ytd and a further 187,900m² currently under construction. This has boosted the land market with lots in excess of 1ha showing some price appreciation, however the market for smaller lots remains difficult.
The investment market has been dominated by the wholesale/syndicate buyers (40% of sales over $5 million) followed by AREITs with 20% of sales volume. Prime yields have been gradually firming to range between 8.20% and 8.72%, however there has been a noticeable premium for new assets with WALEs in excess of 12 years.
Source : Knight Frank