By Sabrina Walker
Brisbane’s industrial real estate has experienced a major boom due to soaring demand brought on by the COVID-19 pandemic.
Industrial spaces in Brisbane have become safe havens for investors with online, logistics and manufacturing businesses thriving as a result of the pandemic.
Brisbane’s industrial real estate sector has performed strongly, despite an economic recession occurring for the first time in 30 years.
Real estate agent with Ray White Commercial, Jack Gwyn said Brisbane’s industrial real estate market is performing strongly.
“Industrial real estate is the most sought after and the most resilient class of real estate at the moment,” Mr Gwyn said.
The trend of businesses moving to warehouse spaces to cut overhead costs and serve online markets, has accelerated with current economic conditions.
Associate Director at CBRE Brisbane, Ben Lyons said demand has soared for logistic spaces due to the pandemic.
“We have noticed demand for logistic spaces, especially because of the e-commerce businesses. Most e-commerce businesses are having record years despite the pandemic,” Mr Lyons said.
Investors have flocked back to the industrial market due to rent remaining stable, making it a safe investment.
Real estate agent Jack Gwyn said demand is so strong for industrial sites that they have been inundated with enquiries.
“The strong return investors get with tenants locked into long term leases is causing a frenzy and we can’t get enough of that stock,” Mr Gywn said.
Brisbane’s strong market amidst the pandemic has also sparked interstate interest.
Ben Lyons from CBRE Brisbane said, the Brisbane market is experiencing elevated interest.
“We are seeing a trend from Melbourne and Sydney investors coming into the Brisbane market, because they see it as a bit of a safe haven compared to the rest of the country,” Mr Lyons said.
See Mr Lyons discuss the impact the pandemic has had on the industrial market.
Brisbane has a land availability constraint pushing prices up due to demand.
Ben Lyons said industrial properties in the Brisbane market are a highly sought after commodity.
“We have been seeing land prices increasing 10 to 15 per cent each year,” Mr Lyons said.