Brisbane’s Q1 industrial completions breach 10-year average

Over 130,000sqm of new industrial space was completed during the quarter.

New industrial completions in Brisbane reached 134,200 sqm in Q1, up on the previous quarter and above the 10-year historic average of 95,500 sqm, according to a JLL report. The pre-commitment rate at completion was 60% and new stock was mostly built in the Southern precinct (72,600 sqm) followed by Trade Coast (61,600 sqm).

“Brisbane’s industrial vacancy rate has marginally reduced in Q1 2025 to 3.9%. A total of 51,400 sqm of speculative developments have reached completion, without securing pre-commitment. However, stable leasing demand has prevented the vacancy rate from rising,” the report said.

Here’s more from JLL:

Occupier demand in the Brisbane market has decreased, comparative to Q4 2024. However, activity in Q1 2025 has improved year-on-year. A total of 113,000 sqm has been absorbed, below the 10-year historic average of 154,900 sqm.

Tenants within the transport, postal and warehousing industry were most activity during the quarter, taking 47,300 sqm. The largest transaction was a pre-lease to United Rentals (21,400 sqm) in Brisbane’s Trade Coast precinct.

Yield tightening is recorded in Q1 2025

Net face rents remained highest in the Trade Coast at AUD 198 per sqm p.a. The Southern precinct outperformed other precincts with quarterly rent growth of 2.7%, rental increases were particularly strong in smaller sized stock (circa 3,000 sqm).

Investment volumes in Q1 2025 reached AUD 405.6 million, above the 10-year quarterly volume of AUD 268.0 million. A portfolio transaction in Yatala, located in Brisbane’s Southern precinct marked the largest transaction in terms of value.

Outlook: New construction likely to moderate, in response to reduced pre-leasing activity

Steady rental growth is anticipated across all precincts in the Brisbane market.

Further yield tightening is likely by the end of 2025, as investor interest intensifies.