Southside Industrial Sales & Leasing update

by admin | 14th January 2014

Western corridor including Carole Park, Darra, Heathwood, Richlands, Seventeen Mile Rocks, Sumner Park & Wacol
Pat Kerruish 0422 702 504

The South West Corridor continues to be a proven location with excellent transport infrastructure and the benefits of easy access to major arterials such as the Ipswich, Centenary and Logan motorways. Carole Park and Wacol have predominantly manufacturing, fabrication and engineering tenancies, whereas the other suburbs attract all types of tenants. These suburbs are strong employment areas and according to the Brisbane Economic Development Plan, employment numbers to 2031 are expected to increase; for example, by as many as 2637 in Richlands.

Sales and leasing enquiries in the Western Corridor have held steady in recent months. There is a shortage of larger facilities of all qualities, giving developers an opportunity to cash in on speculative 5000+ m2 facilities. There is minimal development activity in the area at present, though of note, is a 12 800 m2 DEXUS facility at Wacol that has just been completed, three freestanders in Metrowest through mid-sized developers and one freestander in Carole Park.

Recent leasing deals in this area include 11 Machinery Street, Darra leased for $92 100 pa on a four-year term boasting a 921 m2 modern masonry unit with a 59 m2 office and five electric roller doors. A 1099 m2 metal clad warehouse at Unit 2, 12 Archimedes Street, Darra leased for $87 500 pa.

In sales, Richlands has seen a few significant transactions, including the Sentinel Property Group Richlands for $18.5 million, taking advantage of low interest rates and few buyers in the market. The DEXUS purchase of 295 Archerfield Road, Richlands for $9.075 million is a positive sign for the suburb.

A very timely speculative building on Flint Street, Richlands, which was constructed by Australand, was well received by the market and was leased to Isuzu for a reported $105/m2. Isuzu has taken up a 9477 m2 warehouse for its spare parts division, with another 4739 m2 available for sublease.

Sales in Sumner have held steady with a number of small- to medium-sized properties reaching settlement. These include 6 Neon Street, Sumner selling for $1.05 million and the liquidator’s sale of 24 Bronze Street, Sumner for $751 000. This property was sold by King & Co at auction under instruction from the liquidators Glenn Shannon and Peter Lucas of P. A. Lucas & Co. Chartered Accountants. In leasing, 12 Forge Close, Sumner was leased for $650 000 pa on a five-year lease.

The fully DA approved redevelopment of the Wacol Army Barracks into a 92.9 hectare ‘Metroplex at Westgate’ business park at Wacol is progressing with 16.79 hectares in the stage four area of the development being marketed now. Infrastructure works for stage three is expected to begin in 2014.

Sales and leasing has remained steady in the established suburbs of Carole Park, Heathwood and Seventeen Mile Rocks. Of note, a superannuation fund has purchased 131 Mica Street, Carole Park for $21 million and another has purchased 14 Counihan Road, Seventeen Mile Rocks for $4 million. The recently completed Metrowest business park at Seventeen Mile Rocks is nearing capacity. King & Co also recently negotiated the sale of 47 Moreton Street, Heathwood for $2.4 million.

Logan Motorway Corridor comprising Beenleigh,Loganholme, Meadowbrook & Berrinba
Sam Harper 0423 380 514

The Logan Motorway Corridor, which is located along the Logan Motorway, enjoys excellent access to other arterials such as the Pacific and Gateway motorways. The area is well serviced by local amenities, public transport and a strong work catchment.

Meadowbrook continues to prosper with opportunities available for vacant land, design and construct options and turnkey buildings, as well as existing buildings available for both sale and lease.

Construction has commenced on Toll NQX’s new 44,058 m2 building in Berrinba. Opportunities still exist in the area to purchase or lease completed buildings to pre-commit for design and construct options.

The ever-popular Logan Motorway precinct, including the suburbs of Loganholme, Kingston, Meadowbrook, Berrinba, Crestmead and Parkinson, continues to see strong interest from transport and logistics companies due to its excellent truck access to South East Queensland’s major arterials. A 2000 m2 property at 19 Meakin Road, Meadowbrook was sold for $1.6 million, and a 4000 m2 site at 8 Production Street, Beenleigh was sold for $1.7 million.

Crestmead, Browns Plains & Parkinson
Richard Hall 0408 199 919

Crestmead has seen a number of recent sales in the Crestmead Industrial Estate, with over ten lots of Light and Medium Industry land still available for purchase, ranging in size from 2000 m2 to 1.02 hectares.

Sales and leasing in Browns Plains has held steady recently. Smaller units are taken up quickly, such as the sale of Unit 1, 62 Eastern Road, Browns Plains, which sold for $577 500.

In Parkinson, Australand’s 4.2 hectare development at 3135–3295 Beaudesert Road has approximately six remaining sites available for sale or design and construct with lease options also available. Lots range from 3500 m2 to 1.56 hectares. Tenancies range from 2000 m2 to 8000 m2 with B-Double approval for the entire developed area.

Yatala Enterprise Area comprising Yatala, Ormeau & Stapylton
Sam Harper 0423 380 514

The Yatala Enterprise Area is located along the Pacific Motorway on the Brisbane to Gold Coast Corridor. Increased development and an abundance of land in Yatala, Ormeau and Stapylton have seen a number of large companies take up residence in the precinct. Of note, a parcel of land at Darlington Drive, Yatala was purchased by Collcrow Pty Ltd for $2.31 million for future development.

Due to the success of the Proximity @ Yatala Estate, just two design and construct opportunities are left in this precinct, with sizes from 5000 m2 to 40 000 m2 available for precommitment. Additionally, the developer is in the process of constructing a 9950 m2  speculative building in the estate.

Industry sources inform us that Caterpillar has committed to a 55 000 m2 building on Elderslie Road at Yatala. The facility is reported to be the company’s new parts distribution centre and will be a great benefit for the area, with a number of smaller suppliers and feeder companies now actively seeking locations in the Yatala area.

The Yatala Enterprise Area continues to attract a wide range of new businesses, ranging from fabrication right through to bulky goods/retail-type users. For example, Unit 1, 1 Hovey Road, Yatala was leased recently for $72 000 pa on a three-plus-three-year term to a fleet signage company, and Unit 1, 17 Computer Road, Yatala was leased for $69 750 pa on a three-year lease to a laser cutting company.

The location, midway between Brisbane and the Gold Coast, also provides an ideal location for businesses wanting to service both markets.

South M1 Corridor, including Slacks Creek, Underwood, Woodridge and Springwood
Sam Harper 0423 380 514

The South M1 Corridor, which is located along the Pacific Motorway and close to the Gateway Motorway, provides easy access to both north and south. It is a well-established industrial precinct with a strong local workforce and thriving local amenities. Properties such as 30 Kingston Road, Underwood, which recently leased for $87 500 pa on a five-plus-five-year term enjoy excellent exposure due to the high traffic volume in the area.

The Slacks Creek/Underwood/Springwood precinct continues to see strong enquiries from automotive and related businesses as traditionally strong trading areas, such as Moss Street, experience a resurgence in demand. While cautious owner-occupiers are reentering the market, lower interest rates are a driving factor. For example, 21 Cronulla Court, Slacks Creek was sold for $1.1 million for a 1 hectare site when the tenants decided to purchase the property. Also, in Woodridge a 1703 m2 property at 68 Compton Road was sold for $1 million.

Archerfield, Moorooka, Rocklea, Yeerongpilly & Acacia Ridge (Achievement, Success & Colebard Streets)
Rod Hewitt 0417 02 04 06
Daryl Sluggett 0418 782 271

Archerfield has seen transactions remain steady in recent months with a shortage of new stock. Prices in the area do seem to be stabilising, which may encourage more confidence and owners to re-enter the market.

Sales to note in Archerfield include 8101 m2 at 629 Boundary Road selling for $4.5 million, and also the purchase of 4.46 hectares at 146 Kerry Road for $13.245 million by Hastings Deering (Australia) Pty Ltd for its new head office.

Areas of Moorooka, Rocklea and Yeerongpilly have been affected by the uncertainty relating to the Cross River Rail project, which has been delayed and put on hold due to a lack of government funding. A cloud still remains over many properties that have been earmarked for resumption under hardship regulations, which makes it difficult for owners to sell or lease.

Following a $17 million revamp, the Brisbane Markets at Rocklea have seen a resurgence of interest in this busy trading centre. A 1700 m2 property at 27 Franklin Street in Rocklea was leased for $60 000 pa by Produce Runners Pty Ltd, and a similar property also in Rocklea, A57 Ashover Road, was leased for $144 500 on a fouryear term with options. Both of these deals were negotiated by King & Co.

Acacia Ridge has seen more stock available as the area moves towards manufacturing and engineering, which have suffered due to downturn in business conditions. An 8634 m2 site at 101 Beenleigh Road, Acacia Ridge was purchased for $4.6 million.

Coopers Plains, Larapinta, Salisbury and Acacia Ridge
Rod Hewitt 0417 02 04 06
Richard Hall 0408 199 919

Coopers Plains has seen some small units available from 300 m2 to 350 m2 at approximately $1250/m2 to $1350/m2. Vacant blocks have remained available for sale. In this suburb, 719 Boundary Road leased for $270 000 pa on a ten-year term with a five-plus-fiveyear option.

The 50 hectare development at Larapinta’s Radius Industrial City Estate still has a few freehold development sites available for sale, ranging from 5000 m2 to 76 000 m2. BP has purchased a 3.41 hectare site at the entrance to the Radius Industrial City Estate for an undisclosed price, but industry sources suggest that the purchase would have been in the vicinity of $12 million. The BP Service Centre will provide twentyfour-hour convenience retail and fast-food services to the estate, in addition to those motorists travelling the Logan Motorway.

Salisbury has seen some recent sales negotiated by King & Co, such as 266 Evans Road, selling for $2.45 million and the 3708 m2 site at 23 McCarthy Road,selling for $1.6 million.

Acacia Ridge has seen very little change with limited stock available as tenants are not moving and owners are not selling. Final blocks in Dulacca Street are under construction. Most units have already been taken up by owners and/or tenants. CS Gas has recently leased Lot 14, 243 Bradman Street, Acacia Ridge for $845 000 on a five-year term with options negotiated by King & Co.

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