King and Co Property Consultants are industry leaders in the industrial property market in Brisbane. The year 2021 finished with unprecedented low yields, strong demand for sales and leasing, and low stock levels. This all bodes well coming into 2022. Properties listed for sale or lease will be hotly contested.

What are some of the factors influencing this dynamic market?
• Increasing land values – A major lack of industrial land in key corridors will see continued demand and price increases throughout the year.
• A lack of stock – Existing sales and leasing stock is and will be limited throughout 2022. This will ensure demand will out strip supply.
• Interest rates – Historically low interest rates are forecast to remain in 2022. This is integral to fuelling demand by both owner occupiers and investors alike. As some have suggested a rate increase maybe looming, however the strong returns provided in the industrial property market will ensure demand remains high.
• The rise of E-Commerce – Covid 19 generated greater online shopping and this is a pattern that will not reverse. It will only grow in the coming years. The industrial property sector will benefit significantly through a greater demand to store and distribute product.
• Suring up our supply chain – Many companies have been caught out in 2021 being able to source enough stock to supply their customers. Companies will do their upmost to secure stock going forward, fueling greater demand for warehousing.
• Rental rate rises – Rental rate rises are on their way. Limited stock, high demand, and increasing building costs must lead to an increase in rental rates.
• Investors safe haven – Investor’s inability to gain a worthwhile return from their banks are turning to Industrial property to provide them with solid returns without the volatility the share market can produce.

Should you have any queries, King and Co would be pleased to discuss or help with any of your industrial property needs.

Robert Finlay
Director Sales & Leasing
February 2022

Posted in Company, Lease, Property Management, Sales on 10th February, 2022 | No Comments »