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Healthy Demand for Large Format Industrial in Brisbane

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Healthy Demand for Large Format Industrial in Brisbane

Healthy Demand for Large Format Industrial in Brisbane

Strong demand in Brisbane’s A-grade industrial sector has seen vacancy rates drop by 3 per cent over the quarter, according to latest research.

Healthy Demand for Large Format Industrial in Brisbane. The 3 per cent drop over the three months to October reflects a 2.8 per cent decrease over the past year as larger tenants compete for limited space, according to Knight Frank’s Brisbane Industrial Vacancy report.

Knight Frank’s Mark Clifford said tenants with larger requirements were very active, with the improvement in A-grade vacancy for the quarter largely due to speculative space absorption.

The company recently negotiated more than 48,900sq m of leases across six assets in a six-week span.

“These deals have been for existing A-grade facilities, above 5000sq m in size, with the tenants being large scale businesses either expanding or looking for efficiencies in their warehousing and distribution strategy by occupying newer well-designed facilities,” he said.

The report found the improvement in vacancy in the A-grade market dropped by 18 per cent to 227,161sq m, in contrast to available secondary accommodation which increased by 18 per cent to 238,921sq m.

Due to limited existing or speculative stock, Knight Frank Partner Chris Wright said there would be a greater focus on design and construct options.

“We don’t expect tenant demand to slow down, with all the fundamentals in the market being positive including the Queensland economy and population growth ticking along, upcoming infrastructure projects and reasonable business confidence.

“But it’s going to be hard for tenants to find existing buildings of 5000sq m plus.

“This has to translate into more activity in the design and construct sector at key industrial land estates. We are going to start seeing some spec activity as well given the healthy demand for 5000sq m plus.”

Related: Futuristic Warehouses, E-Commerce Drives Industrial Market

Source: Urban Developer – Healthy Demand for Large Format Industrial in Brisbane

 

 

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Commercial

Singapore Logistics Trust Snaps Up Coles Distribution Centre

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Singapore Logistics Trust Snaps Up Coles Distribution Centre

Singapore Logistics Trust Snaps Up Coles Distribution Centre

Singapore Logistics Trust Snaps Up Coles Distribution Centre. Singapore real estate investment giant Mapletree its maiden Brisbane asset, a Coles distribution centre in the city’s south west for $105 million.

Mapletree’s Singapore-listed logistics trust picked up the 55,739sq m Heathwood asset on a 5.7 per cent yield.

The purchase brings Mapletree’s Australian portfolio to 10 assets of more than S$600 million ($613m).

Demand for Australian logistics property is offsetting an otherwise dour property market, with the e-commerce boom driving high demand in the large format logistics space.

Brisbane’s industrial sector has seen vacancy rates drop by 3 per cent over the last quarter, as larger tenants compete for limited space, according to a recent Knight Frank Brisbane industrial vacancy report.

 

Singapore Logistics Trust Snaps Up Coles Distribution Centre

Mapletree’s listed logistics trust has snapped up a Coles distribution 28km south-west of Brisbane.

Mapletree logistics trust chief executive Ng Kiat said that the acquisition would provide a stable and growing income to its unitholders.

The massive Coles distribution complex sits on a 151,600sq m land parcel with the opportunity to yield an additional gross floor area of up to 19,000 square metres.

The centre is located along the Logan Motorway 28 kilometres from Brisbane’s CBD.

“Brisbane’s logistics market poised to benefit from several major infrastructure developments [such as] Brisbane Airport’s second runway, the inland rail connecting Melbourne and Brisbane, and various rail and intersection upgrade projects,” Mapletree said.

Coles has a remaining lease term of 4.3 years until January 2023.

Mapletree has four Singapore-listed real estate investment trusts and six private real estate funds, with a S$46.3 billion ($47bn) portfolio of assets in the UK, USA and Asia Pacific.

Source: theurbandeveloper.com

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Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

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Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring. Developer Keylin Group has lodged plans with Brisbane City Council for a $75 million residential development in Brisbane middle ring suburb Upper Mount Gravatt.

The subject site, located at 22-40 Dawson Road, comprises 10 lots on a 4860sq m parcel of land.

The proposal, designed by architect Group GSA, is grouped into three separate buildings along Dawson Road, stepping down in height from seven, six and five levels.

 

Dawson Road Site

Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

Keylin Group’s Louis Cheung said the group is a big believer of Brisbane’s growth in the middle ring.

The developer says the project is planned in a thriving precinct with a “record growth rate and a high rental demand and yield”.

The development will comprise a total of 138 units offering a mixture of one, two and three bedroom apartments, with the project itself split across two stages.

Historically, Cheung says the trend in development for the area has catered towards the investor market.

“The design of this project focuses more on the owner occupier market, with a large portion offering three bedroom apartments,” Cheung told The Urban Developer.

“One of the key components for the development is car parking and ample storage areas. More than 50 per cent of our two bedroom apartments have two car parks, a point of difference to your typical offering.”

“Throughout the design process we have referenced the New World City Design Guide: Buildings That Breath document and where possible integrated philosophies and key elements into the design,” GSA said in their design statement.

 

The proposal has been grouped into three separate buildings along Dawson Road. Building three will be constructed within the first stage and buildings one and two to be constructed in the second stage.

The proposal has been grouped into three separate buildings along Dawson Road. Building three will be constructed within the first stage and buildings one and two to be constructed in the second stage.

The precinct is close to existing infrastructure such as Griffith University, QEII Jubilee Hospital and Brisbane Technology Park and has proximity to public transport, the M1 and the proposed Brisbane Metro which is set to benefit the area.

The Mount Gravatt area is considered a key economic hub roughly 15 minutes from Brisbane’s CBD, with estimates it will deliver more than 10,000 jobs by 2031.

Other nearby developments include an eight-storey residential building by Brisbane-based developer Opalyn Property Group, which will comprise 67 apartments.

Source: theurbandeveloper.com

 

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Brisbane CBD Leasing Market Strongest in 10 Years

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Brisbane leasing
Brisbane CBD’s leasing market continues to tighten with prime grade office vacancy at its lowest level since 2012.

Research released by JLL has recorded a positive net absorption of 151,200sq m nationwide over the last quarter and 258,600sq m over the 12 months to September 2018.

Brisbane CBD recorded 15,400sq m of net absorption in the third quarter and vacancy tightened to 13.9 per cent.

Over the past year, net absorption in Brisbane totalled 39,600sq m, 29 per cent above the 40-year average of 30,600 square metres.

“Brisbane, Perth and Adelaide will be the office markets to watch closely in 2019,” JLL head of office leasing Tim O’Connor said.

“Leasing enquiry and activity is positive, prime grade vacancy has tightened in Brisbane and Adelaide and we expect owners will start winding back incentives to a level more associated with current vacancy rates.”


Australian CBD Office Markets Net Absorption

Image: JLL
Image: JLL

Adelaide has benefited from growth in the defence, resources and professional services sectors recording positive net absorption of 14,700sq m over the quarter and 23,200sq m over the 12 months to September 2018.

Melbourne has continued to be the standout performer nationwide, recording 79,900sq m of net absorption over the quarter and 187,800sq m over the 12 months to September 2018.

“The Melbourne CBD office leasing market juggernaut continues to roll on,” O’Connor said.

“Melbourne is one of the world’s strongest performing cities and we continue to see a diverse range of industry sectors expanding their occupational footprint in the Melbourne CBD.”


Australian CBD Office Markets, Vacancy Rate by Grade

Image: JLL
Image: JLL

Melbourne’s CBD development pipeline over the next two years is anticipated to be the cities largest year for completions since 1991.

JLL projects vacancy as of 2020 will sit around 6 per cent, well below equilibrium of 7 per cent to 9 per cent for the Melbourne CBD.

Sydney CBD recorded 8,800sq m of net absorption over the 12 months to September 2018 and vacancy was 4.7 per cent, exerting upward pressure on Sydney CBD rents.

“Two more WeWork facilities opened last quarter and we are speaking with a number of potential new co-working operators,” O’Connor said.

Sydney currently faces challenges for new entrants with a lack of contiguous space within the CBD.

Source: theurbandeveloper.cmail20.com

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