PROPERTY COUNCIL REPORT REVEALS LOW INDUSTRIAL VACANCY FOR BRISBANE
Despite a declining manufacturing sector, a new report released in May by the Property Council of Australia reveals that Brisbane is enjoying low vacancy rates in the industrial property sector.
The Council’s Brisbane Industrial Vacancy Report found an average vacancy rate of 5% of properties and 3.9% of floorspace across four study areas.
The report measures vacancy in industrial property greater than 3000sqm and reveals that the Brisbane South-West area is experiencing the highest level of vacancy at 8% of floorspace, while the Logan Motorway is the best performing precinct with 2.1%.
Brisbane North and Australia Trade Coast were also found to be performing well, with 2.8% and 3.6% of floorspace vacant respectively.
Chris Mountford, Queensland Executive Director of the Property Council, said the report’s findings reflect a movement of tenants towards newer properties.
“Lower vacancy rates at the Australia Trade coast and Logan Motorway echo the industry’s experience of recent movements towards newer industrial properties,” said Mr Mountford on release of the report. “While traditional manufacturing tenants are becoming scarcer, industrial vacancy is remaining low due to growth in logistics and warehousing activities.
“This shift will be a key driver for Brisbane’s industrial precincts that have access to major arterial roads and the Port of Brisbane. With land supply relatively constrained within Brisbane, the opportunity to redevelop in existing industrial areas will become more attractive as tenants look to amalgamate into new facilities.