Market Report - The Morton Bay Commercial Property Team

“If you want a haircut, go to the barber”.

This simple saying stuck in my head this year when a client explained why he came to us for advice on his commercial property.

To put this into context, our RWC Northern Corridor Group team had more agents on the ground and completed more transactions in FY24 than any other commercial real estate firm across the Northern Corridor.

151 SALES worth over $300,000,000 for our clients

246 LEASES secured more than $15,400,000 in rent for our clients

While no-one has a crystal ball, we can be quite certain that the following key drivers will continue to influence the Northern Corridor commercial property market in the next financial year:

Ashley Rees Director | Senior Analyst 0411 707

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Northern Corridor Market Drivers

FY 2025

POPULATION GROWTH

We have double the population of Rockhampton projected to move to the Northern Corridor over the next two decades, which makes this area one of the most significant residential growth corridors in Australia. The investment in infrastructure and the positioning of businesses to capitalise on this workforce and customer base is already noticeable and will continue to drive investment in the coming year.

LAND SUPPLY CONSTRAINTS

The next five years in particular will see further tightening of what is already a chronic supply shortage of industrial land in the region. Vacant industrial rates have increased from $285m2 in 2020 to over $550m2 in 2024. There is now no remaining land earmarked for General Industry subdivision between Caboolture and Brisbane and a recent needs analysis identified that the Sunshine Coast was almost 400ha of a “healthy” future supply pipeline.

CONSTRUCTION COSTS

Construction prices have been a major source of the CPI issues that drove the interest rate hikes of 2023. There has been a perfect storm of international conflict, labour shortages, fuel, materials and competing infrastructure projects impacting all facets of commercial construction. The South East Queensland market has been impacted more than most areas due to the Olympic infrastructure pipeline of projects that has taken tier 1 builders out of the private industrial construction pool. This, combined with the land supply constraints, will likely see continued upward pressure on finished product costs for new industrial buildings.

AFFORDABLE HOUSING & LABOUR

Industrial businesses across the country are struggling to access the necessary skilled labour. With housing affordability and cost of commuting being the two factors that dictate workforce location the Northern Corridor is positioned to provide rapid relief to this pent up demand. Caboolture West alone has the potential to supply close to 40,000 new homes, spurred on by the Government’s Affordable Housing mandate. This is proving doubly attractive for businesses in the trade services and building supply industries, who want to position themselves to servicing the demand from the same residential construction projects that this new labour force will call home.

Recent Transactions

$3,450,000

• 1,300m² facility comprising of 1,123m² warehouse, 40m2 ground floor office/ reception & 137m² mezzanine office

• The project has delivered more than 2,000m2 of retail including an IGA Supermarket, and a 2,500m2 health precinct.

• 2,251m² allotment

• 4 x container height roller doors providing excellent ventilation

• Other tenants include a doctors’ practice, national pharmacy, dentist, hairdresser, gym, bottle shop, mixed food vendors and many more.

• Good natural lighting to warehouse

• 15 car parking bays

Samuel Hoy | 0423 795 273

$623,000

•218m2 warehouse (160m2* ground floor + 58m2 mezzanine)

• 1,384m²* facility comprising of 1,218m²* open warehouse & 166m²* office area

• NBN on site

• 2,251m² allotment

• High clearance electric roller door

• Good street access

• Leased to Queensland Government, Department of Agriculture and Fisheries until June 2027 with options to 2030

• Internal amenities

• $243,160.64* net income per annum

• LED high bay lighting

• Annual fixed rent increases

• Quality tilt slab construction

Samuel 0423 795 273 | Charlee 0431 135 900

• Brand new tilt slab warehouse

• Multiple units available ranging from 150m² to 258m²

• 3 phase power

• Electric container height roller door

• Kitchenette

• Disabled toilet & shower

• 22 car parks

Chris 0412 490 840 | Troy 0432 701 600 Chris 0412 490 840 | Troy 0432 701 600

• 212m²* tilt slab warehouse with mezzanine

• Nett $194,359.63* per annum

• 4,000m2* high exposure allotment

• 24 car parks

• Container height electric roller doors

• Internal amenities

• 1,395m2* warehouse plus 100m2* mezzanine

Covered loading area

• Ample power including 3 phase

• Securely fenced site with usable concrete hardstand

• 5 year lease term expiring 31/07/2025

• Close proximity to the Bruce Highway

• 2 x 5 year options with market reviews

Michael 0488 981 076 | Samuel 0423 795 273

EVANS DRIVE, CABOOLTURE

ALTA ROAD, CABOOLTURE

ALTA ROAD, CABOOLTURE

ALTA ROAD, CABOOLTURE

LEASED $38,400

LEASED $93,960

Reception area

• Unit 1: 562m2 including 142m2 mezzanine

580m2 industrial warehouse

• Multiple consultation rooms

• Unit 2: 562m2 including 142m2 mezzanine

• Showroom opportunities between 773m2*1,226m2*.

• Air conditioning throughout

• Air conditioned office fitout

• Toilet, shower & kitchenette

• Total complex 1,124m2*

• Ample parking to rear

• 16 car parks in complex

• Complimentary signage available

• NBN and staff facilities

• Outgoings included

• High quality tilt slab construction

• Only one neighbour in complex

James 0422 087 745 | Troy 0432 701 600

Samuel 0423 795 273 | David 0481 996 794

LEASED $128,100

• 420m2 fitted out office

• Sizes from 163m2* - 343m2*

• 14 separate offices

• Two meeting rooms

• High exposure corner location with branding opportunities

• Reception/waiting area

• Internal amenities for staff

• High clearance roller doors

• Open plan workspace

• Internal amenities & staff room

• 15 on-site car parks

• Highly accessible driveway

• Fronts Morayfield Road providing excellent exposure to passing traffic

• Fast NBN connectivity

Troy 0432 701 600 | Chris 0412 490 840

Samuel 0423 795 273 | Charlee 0431 135 900

• High exposure and brand opportunities

• Compromising of 500m2 open plan warehouse + 50m2 mezzanine + 30m2

• Office/staff facilities

ground floor reception

• Front & rear roller door access

• Internal amenities

• 60m2* yard space to rear

• High-speed NBN

• High bay lighting

• 44 on-site car parks

• Air-conditioning throughout offices

• High roller door

Troy 0432 701 600 | James 0422 087 745

Samuel 0423 795 273 | Michael 0488 981 076

LEASED $64,000

14/10-12

• 400m2 warehouse

• Total area: 62m2*

• Close proximity to Bruce Highway

• Frontage to Nicklin Way

• Office in high profile location

• 5 x electric container height roller doors

• 3 phase power to building

• Exceptional exposure for signage

• On site amenities

• Ample parking on site

• Affordable outgoings with owner covering body corporate levies

• Close proximity to Sunshine Motorway & national retail operators

Aaron 0447 744 948 | Chris 0412 490 840

Charlee Livesey | 0431 135 900

10A/113-137 MORAYFIELD ROAD, MORAYFIELD

CERIUM STREE, NARANGBA

2/46 AERODROME ROAD, CABOOLTURE