Brisbane Industrial Market

July, 2018

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The Brisbane Industrial market is in an upturn.

Market Overview

The Brisbane Industrial market is in an upturn.  Leasing activity has increased, building approvals have strengthened, vacancy has reduced and rents have grown.

Growth is being supported by some key road infrastructure projects underway, notably the Gateway Upgrade North and the Logan Enhancement Project, improved business confidence and continued growth in e-commerce.


Casey Robinson

National Research Specialist

View Profile > QLD
Ross Perkins


View Profile > QLD

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Tenant Demand

Retail/wholesale and transport/ logistics firms remain key sources of demand.  Demand from retailers has stemmed from their increasing of storage space and distribution capacities.  With the ‘bricks and clicks’ approach becoming increasingly prevalent amongst retailers, the establishment of large warehouses, capable of distributing goods directly to the consumer, has become more common.  Growth in online retailing has also driven demand for warehousing, transport and logistics facilities from users such as Global Freight, Deliver Group, Couriers Please, Dutt Transport and MJ Logistics.

Demand from the manufacturing sector has shown some improvement with a number of recent leases and owner-occupier sales.  The manufacturing sector is becoming more advanced and specialised in Australia.  According to the AiG Performance of Manufacturing Index, the manufacturing sector expanded or was stable over the nineteen months to April 2018.  A number of food and beverage manufacturers (such as PepsiCo, Japan Food Corp, Coca Cola and Hilton Foods) have signed new leases across the Greater Brisbane Region industrial market over the past two years.


Prime net face rents increased over the year to June 2018.  Prime rents currently generally range between $100 and $140/m², with the Australia TradeCoast continuing to attract a premium to other precincts.  Secondary net face rents typically range between $65 and $105/m².

Across both prime and secondary accommodation, owners continue to offer large incentives to tenants.

Investment Market

Over the year to March 2018, there was circa-$1,013,000,000 worth of industrial properties (sales over $5,000,000) traded across the Greater Brisbane Region, up from $693,845,000 over the year prior.  Approximately 37% of sales (by value) occurred in the Australia TradeCoast and 35% of sales occurred in the Western Corridor (boosted by the sale of the Coca Cola Amatil facility in June 2017).

Key buyers in the Greater Brisbane market over the year to March 2018 included Sentinel Property Group, Garda Capital, ARA and Blackstone Group.

Prime investment yields were stable over the year to June 2018, typically ranging from as low as 6.00% in the Australia Trade Coast up to 7.00% in most other precincts.  Secondary yields tightened by circa-10 basis points over the year to June 2018.  Secondary yields ranged from as low as 7.00% in the Australia Trade Coast and up to 8.75% in the M1 and Northern Corridors as at June 2018.

“Whilst the gap between prime and secondary yields has reduced, secondary space remains higher on the risk scale due to tenants’ desire to lease the most efficient space possible.”

Mitchell Enright
Senior Valuer

Specialised assets (such as cold storage and food processing facilities) continue to be met with strong investor demand.

Land Values

Land values increased over the past 18 months.  The average land value across Greater Brisbane, for one to two hectare allotments, as at June 2018 was $290/m2.  Land values currently range from an average of $205/m2 in the M1 Corridor up to $475/m2 in the Australia Trade Coast submarket.