QLD PROPERTY MARKET REVIEW

DANIEL HUTCHINSON from FAL PROPERTY GROUP

Industrial

The Brisbane industrial market remains highly competitive. The leasing sector is reminiscent of Sydney’s office market in recent times, with many landlords running off-market expressions of interest campaigns to capitalise on the pentup demand from tenants who are struggling to find suitable accommodation. Financial pressures from the consistent rates rises have impacted both the owner occupier and investor space from the sales side of the fence, with yields softening and borrowing capacity reducing.

Office

For the first time since major disruption of Covid 19, the office market is showing signs of life in both sales and leasing. Vacancy rates are improving as the workforce continues to return to the office with rental rates and incentives stabilising.

For sales, while yields may be comparatively soft, it is promising to see a number of sizable transactions from the larger end of town, with quite a few funds securing major office buildings in key metropolitan areas in the last 6-months; no doubt looking to capitalise on the upcoming infrastructure projects attached to the Olympic Games in 2032.

Retail

Retail isn’t out of the woods yet. Despite promising improvements throughout 2022 the December/January trade period delivered underwhelming results with monthon-month turnover falling 3.9% in December. This combined with supply chain issues, costs of goods increasing, and staff shortages mean that retailers are in for a challenging end to the FY.

Leasing has remained quite consistent, Prime & A-Grade centres continue to benefit from strong tenant demand with well-presented and located tenancies still being highly sought after. B & C-grade are lagging behind as tenants are still a little shy of tenancies that aren’t the perfect fit. Yields have started to soften too, particularly on trophy, long-WALE assets as investors seek out opportunities with rental or development upside to off-set raising interest rates.

FOR SALE 25,290qm SITE WITH DA

123 Marshall Road, Rocklea, QLD

Contact Agent for Pricing

• Massive 2.53ha General Industry site

• Warehouse & Office 5,800sqm

• DA for second warehouse at rear

• 80m frontage

• B-Double access & drive around capability

• Currently leased until mid-2023 approx $392,000 gross p/a +GST

This 25,300sqm site in the heart of Rocklea is ideal for owner occupiers and developers alike. The ample excess hardstand at rear provides for additional storage space or for a second building. The existing building at front is 5,800sqm in size, provides ample hardstand for its own use both in front and behind, currently providing $392,000 holding income.

Find Out More About This Property

John Andrew 0488 018 998 john@falproperty.com.au