Brisbane industrial transaction volume hits AUD221.8m in Q3

Transactions underperformed the 10-year average of AUD255.4m.

According to a JLL report, net face rent growth in the industrial sector was highest in Brisbane’s Southern precinct, up 1.6% q-o-q in Q3 2024. On an annual basis, average rents increased most substantially in the Trade Coast (14.3% year-on-year).

“Transaction volumes totalled AUD 221.8 million, which was below the long-term 10-year average of AUD 255.4 million. From the 14 transactions, four were land sales (AUD 31,150,000). A majority of capital was deployed in the Northern precinct (AUD 115.6 million),” the report said.

Here’s more from JLL:

Tenant demand for industrial space has increased in comparison to H1 2024. A total of 170,700 sqm was leased in the quarter across the Brisbane market, above the long-term 10 year quarterly average of 149,000 sqm.

Occupiers within the transport, postal and warehousing industry supported demand. CEVA logistics has leased two warehouses in Q3, including the sub-lease of a 55,400 sqm facility in Heathwood (Southern). Pre-lease activity has slowed, only two new deals were announced.

Completions remain elevated, particularly in the Southern precinct

New completions reached 218,800 sqm in Q3, more than double the long-term 10 year quarterly average (93,300 sqm). Pre-commitment was strong at 63%. A majority of new stock was delivered in the Southern precinct (144,600 sqm), followed by the Trade Coast (59,300 sqm).

Industrial supply under construction totalled 398,700 sqm with a pre-commitment rate of 37%. New constructions have commenced in the Southern precinct and a sum of 179,900 sqm is now under construction in Brisbane’s largest precinct.

Outlook: Rent growth is likely to slow, following strong increases in 2023

Gross take-up may be softer in the near term, as tenants are impacted by current economic conditions.

Higher levels of speculative stock are expected to reach completion without pre-commitment, and this could potentially increase vacancy in the coming quarters.

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JLL

Also Read

Adelaide adds 25,400sqm of new industrial stock in Q3

Melbourne new warehouse stock in Q3 below 10-year quarterly average

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