Rate Rises – Rents Rising
The 7th February 2023 saw the RBA increase its cash rate for the 9th consecutive Time to 3.35%.
How is this affecting the Brisbane Industrial Property market?
There’s a perception that as interest rates rise the yields will begin to soften. While this may well be true, there are other factors counteracting these potential increases in yields. An unprecedented lack of available stock, strong demand from owner-occupiers and investors is still defying yield softening. This, combined with soaring land and building prices has seen an increase in industrial rents in the general vicinity of 18% over the last six months. Existing leases tied to Brisbane CPI are currently subject to a 7.7% increase. In 2022 Queensland saw a net gain of 55,000 people from other states and territories. The highest number in the last 40 years. This can only add to the fueled demand for the industrial sector
