Eastern Corridor – Sales and Leasing Trends

by admin | 28th November 2012

Bulimba saw the sale of a number of vacant GI sites, a case in point being the purchase of four adjacent blocks on Barramul Street…deals that highlight this tightly held suburb’s lack of stock. During the next six months, however, some industrial/commercial properties should come onto the market in sizes from 400m2 to 1,600m2. The smaller end of this assortment will be the  industrial properties that are of particular interest to owner/occupiers, many of whom should be willing to pay premium prices to locate here. Meanwhile, leasing deals have been few and far between due to a minimal amount of stock.

Over the last half year, the sale of investment units constituted the majority of activity in Morningside’s industrial market, one example being the 9% yield achieved for a tenanted property on Breene Place. The next six months should see the availability of a few smaller units along this suburb’s bread and butter streets of Riverside Place and Steele Place, albeit at higher yields, indicating a reduction in prices. In other words,while purchasers are pressing for bargains, it’s becoming necessary for vendors to meet the market.

As to this suburb’s leasing market it, once again, is suffering from a lack of industrial stock, but what does exist includes a 812m2 freestander at 48 Taylor Street; a 661m2 unit at 2/35 Steele Place as well a few small office/warehouses scattered about. Most of these are expected to be  taken up during the next six months, making this shortage even more critical. While rates have remained stable, it’s expected they will rise once confidence returns to the market, but primarily for smaller units

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