The southern Sunshine Coast industrial market is at a turning point. For too long, it has been seen through the narrow lens of tourism and lifestyle, but I can tell you firsthand that the reality on the ground is very different.
Having lived and worked here for decades, and now leading the largest commercial property team on the Sunshine Coast, I see the shifts playing out daily. This is a market driven by strong fundamentals, with demand for industrial space rising, supply under pressure, and businesses forced to adapt in real time.
This report isn’t just a snapshot of activity—it’s designed to show you what is really driving this market and how we see it responding at the coalface. At the centre of the story are two forces—population growth and supply constraints—which I will unpack in detail later. They’re not short-term fluctuations but long-term realities shaping the way this market functions.
Beyond those fundamentals, the wider economic landscape is changing how industry operates here. Post-COVID work practices have redefined where people live and how they connect. E-commerce has transformed the way goods are moved and stored, increasing demand for logistics and warehousing.
Major infrastructure projects—rail, road, energy, and Olympics-related investment—are creating both connectivity and confidence, accelerating growth across the southern corridor. Each of these trends directly impacts industrial property, and each is already visible on the ground.
Our purpose with this report is clear: to help you make better commercial property decisions. By cutting through the noise and focusing on what matters, I want to give you a clear picture of where this market is heading.
The southern Sunshine Coast is no longer just a place to live—it is an emerging industrial hub with momentum that is real, visible, and here to stay.
Market Response to Population Growth
Our team captures daily data on enquiry, inspections, and offers across the northern corridor. This frontline activity gives us a clear lens on what’s driving the market in real time and allows us to see shifts in demand before they show up in the broader statistics.
Over the past year, the data has shown clear phases. Late last year, activity slowed as uncertainty around elections, rising interest rates, and global headwinds kept buyers cautious. That carried into early this year, with U.S. election dynamics adding further hesitation.
Confidence returned quickly once conditions stabilised and the first interest rate cut was announced. Enquiry volumes eased slightly, but quality lifted—buyers re-engaged, offers increased, and properties that had been idle suddenly drew multiple bids. What we’re seeing now is strategic, value-driven activity, not speculation.
At the coalface, the driver is population growth. It’s showing up in two ways: new residents starting businesses of their own, and both new and existing operators positioning to service a fast-expanding residential base. Together, these forces are reshaping industrial demand.
With supply constraints layered on top, competition is intensifying. The evidence from our daily data is clear: strong population growth and limited land availability are fuelling an industrial market with momentum that is accelerating, not slowing.
“Every month we have more than 100 investors, tenants and owner occupiers contact us looking for commercial property in the Southern Sunshine Coast”
Market Response to Supply Constraints
What does this mean for Your Industrial Property
If you own industrial property in the southern Sunshine Coast, the next three years will be pivotal. Our data shows a market defined by scarcity, urgency, and shifting demand. Here’s what it means for you:
Owner-occupier demand is strong and growing
Home equity gains and lower interest rates have boosted borrowing capacity. Business owners are using this strength to buy rather than lease, creating fierce competition for quality stock.
A supply crunch is coming
With Aura and Beerwah maturing, we expect a built-form shortage to bite hard over the next two years. Businesses will be competing for an incredibly limited pool of warehouses.
With infrastructure spending expected to peak by 2028, particularly driven by Southeast Queensland growth and government-backed projects, we foresee continued compression in available stock and price firming. We’ve been advised by leading economists that labour demand and supply chain services will peak in this window, meaning properties suited for these end users will be in high demand.
The price gap between old and new has collapsed
With supply so tight, older buildings are now commanding prices much closer to new stock than ever before. Buyers are prioritising access and availability over age.
Construction costs are pushing future prices higher
Much of today’s built form is based on land purchased two years ago and construction costs locked in a year ago. The next wave of projects will carry today’s higher land and build costs—meaning the product hitting the market next year will be even more expensive than what’s advertised today.
Tenant market reviews are critical
Every extra $1,000 in annual rent equates to around $17,000 in added valuation equity. Getting your reviews right is key—before you renew any lease, talk to us about how to maximise your property’s long-term value.
Pressure on rents and capital values will continue
Vacant industrial properties in particular represent a once-in-a-generation sale opportunity. Sellers in early 2026 may experience the highest competition and best pricing we’ve seen on the Sunshine Coast.
Vacant industrial properties in particular represent a once-in-a-generation sale opportunity. Sellers in early 2026 will likely experience the highest competition and best pricing we’ve seen on the Sunshine Coast.
Recent Transactions in Sunshine Coast South
The following tables show the recent sale transactions in Sunshine Coast South.
Sale Deals
Lease Deals
The Shadforth Commercial Property Team
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As a market leading team on the Sunshine Coast, we are here to support your commercial property decisions, with up to date market trends and analytics, in house marketing capabilities and our expertise.
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