Brisbane Corridor Headed for Industrial Land Shortage.

The research shows that the Brisbane industrial land market is moving into its most active cycle since 2006/2007, with the take-up rate prior to 2008 averaging 50 hectares per annum, compared to the 60 hectares sold during 2011.Wright Property estimates sales will exceed 60 hectares in 2012, and with a total of just 140 hectares of Brisbane industrial land available for purchase over the next five years, the group forecasts the market will soon be undersupplied.

Wright Property estimates sales will exceed 60 hectares in 2012, and with a total of just 140 hectares of Brisbane industrial land available for purchase over the next five years, the group forecasts the market will soon be undersupplied.

Of the seven Brisbane industrial land estates included in the study, only two – Metroplex at Westgate and Redbank River Park – will offer five hectare-plus lots, leaving limited opportunity for purchasers looking for larger sites.

Wright Property director Glen Wright said he anticipated the recent trend toward owner-occupiers snapping up larger land holdings would continue over the coming years, with estates catering to this market expected to perform well.

“Throughout the rest of 2012 I would expect the market to absorb about 85 percent of the  70 hectares of industrial land that is currently available in Brisbane,” he said.

“The most active market for industrial land in recent years has been owner-occupiers, who have been securing large lots of five-hectares-plus in on-line, with average rates sitting at around $200 – $295/sqm.

“I expect to see strong demand in 2013 as purchasers wait for more stock with similar size and price levels to be made available in new estates like Metroplex and Redbank Plains, with the the first stages of these developments expected to be operational in 2014.”

CB Richard Ellis director Peter Turnbull said Brisbane’s industrial land market was yet to realise its full potential, as purchasers were waiting for larger holdings to be made available.

“Although the Brisbane industrial land market is certainly performing well compared to recent years, I believe the best is yet to come as there are a number of purchasers waiting in the wings for sites around 10 or 15 hectares to be made available,” he said.

“The limited amount of industrial land that is currently available isn’t catering for all sectors of the market and this is, in turn, creating pent-up demand, which bodes well for future releases.”

Mr Wright said Metroplex at Westgate was shaping up to become a primary provider of Brisbane’s industrial land supply, with the first stage of the $1 billion development expected to hit the market later this year.

“The industrial market is entering an exciting phase as supply dwindles and market interest grows for larger lots in traditional industrial locations like Wacol,” he said.

“Our research shows about 40 per cent of Brisbane’s industrial land supply over the next five years will be delivered by Metroplex, with will deliver about 55 hectares over this timeframe,” he said.

“The first tranche of industrial land in the estate – located at the junction of the Ipswich Motorway and Centenary Highway –  will be released later this year, with land expected to be made available from two to 15 hectares in size and ready for immediate construction.

“Metroplex at Westgate’s primary location, large land holdings and immediate availability will be key drawcards, in addition to the fact the development will ultimately boast an on-site retail centre and business and health hub for the convenience of occupants and suppliers.”

Peter Roberts, Director in Charge of LandMark White Valuers says the market considers Brisbane’s western gateway as a prime industrial location.

“The lack of supply of broad hectare industrial land will be a feature of the market over the next few years and it is possible that unsatisfied demand exists in the Western Gateway as a result of the lack of supply,” he said.

“Landmark White research shows there is currently only two hectares of industrial land available in the Western Gateway, so when the 55-hectare Metroplex precinct comes on the market, it will be extremely well placed as the only major estate in the Wacol, Richlands, Carole Park and Darra area.

“With large lot absorption now at record levels, it is likely there will be pent-up demand for this type of product in this precinct.”