IN THE KNOW BRENDALE INDUSTRIAL MARKET REPORT
Aaron Canavan Commercial Principal
Trevor Nelson-Jones 0407 736 521
Griffin Deakin 0422 587 143
0447 744 948
raywhitecommercialncg.com
Bianca Jensen-Woof 0434 053 164
Staci Tobin 0497 773 426
BR ENDALE
I N D USTRIAL SUMM A RY
AVERAGE NET FACE RENTS ($/m2 P/A) The industrial property landscape in Brendale is currently experiencing a unique blend of factors driving demand. With inner-city markets feeling the squeeze and a robust Olympic infrastructure pipeline, coupled with a thriving local residential expansion, industrial real estate is in high demand in the area. This heightened demand is evident through the limited supply of industrial properties, a notably low vacancy rate, and rapidly increasing rental rates since 2020.
PRIME
SECONDARY
L
L
H
$150m2
$180m2
H
$120m2
$140m2
AVERAGE YIELDS While some regions and sectors of the commercial property market have taken a hit in 2023, the Brendale industrial market remains robust. Chronic land supply issues, combined with construction costs escalation (referenced further in this report) place Brendale property owners in a strong position to retain the value increases experienced in recent years.
PRIME L
H
5.75%
We expect to see some “musical chairs” over the next six months, with businesses that took on second tenancies in the year post-COVID now consolidating after their three-year lease terms. – Aaron Canavan | Commercial Principal Brendale
SECONDARY L
6.25%
H
6.25%
AVERAGE CAPITAL VALUES ($/m2 ) PRIME
SECONDARY
L
H
$2,800
L
$3,300
TOTAL SALES 01/09/22 - 30/09/23
Total sales
TOTAL LEASES 01/09/22 - 30/09/23
$2,800
Total
43
14
57
$23,718,856
$69,820,000
$93,538,856
Total building area of sales
8627
26474
35101
Average building area
201
1891
-
Average $m2
$2,749
$2,637
-
Total $ of sales
LEASES (1 Sept 2022 - 30 Sept 23)
65
H
$2,400
SOLD (1 Sept 2022 - 30 Sept 2023) Under 500m2 Over 500m2
57
6.75%
Total leases
Under 500m2 Over 500m2
Total
52
13
65
Total building area of leases
12383
15578
27961
Average building area
238
1198
-
Average $m2
$152
$123
-
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BRENDALE - FOR LEASE PRICE UPON APPLICATION
PRICE UPON APPLICATION
3/17-19 Bult Drive, BRENDALE
4/28 Doherty Street, BRENDALE
• 848m2* NLA including 48m2* office space • Tilt panel construction • 2 electric roller doors • Semi-trailer access • 40ft* container laydown area • 3 phase power
• 415m2* NLA including 44m2* first floor office • Ample car parking including 2 exclusive bays • Excellent signage opportunities • Internal amenities • High clearance
PRICE UPON APPLICATION
PRICE UPON APPLICATION
2/22 Pinacle Street, BRENDALE
52 Griffin Crescent, BRENDALE (off-market)
• 490m2* tilt slab unit comprising of: - 413m2* warehouse area - 77m2* air-conditioned office space - 187m2* air-conditioned clean room • Container height roller door • Above standard 3 phase power
• 1,933m* comprises of 1,563m2* clear span warehouse, 312m2* office space, and 58m2* internal mezzanine • Minimum internal height of 8m* • Large hardstand area for truck accessibility • Two dual electric container height roller doors
PRICE UPON APPLICATION
PRICE UPON APPLICATION
14/193-203 South Pine Road, BRENDALE
42/193-203 South Pine Road, BRENDALE
• 171m2* NLA comprised of warehouse, mezzanine & two executive offices • Air-conditioned reception area & offices • Container height electric roller door • Private internal amenities with disabled access • 3 phase power
• 110m2* NLA • Air-conditioned reception area & office • 36m2* mezzanine floor • Container height roller door • 3 phase power • Internal amenities • Easy access
* Approximetly
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BRENDALE RWC YOUR LOCAL AREA EXPERTS
7
8
3 1 9 2 11 4
12 13 10
5 14 15
* Locations Indicative Only. Recent sales are mixed agency
6
RECENT SIGNIFICANT SALES No.
SOLD
1
Sold
2
Address*
Suburb
Size/m2
Price
Price/m2
5 Griffin Crescent
Brendale
3600
$11,000,000
$3,056
Sold
28 & 30 & 32 Leonard Crescent
Brendale
3342
$6,380,000
$1,909
3
Sold
1-5 Kingsbury Street
Brendale
2500
$8,000,000
$3,200
4
Sold
3-5 Hinkler Court
Brendale
2235
$7,050,000
$3,154
5
Sold
11 (AKA 6A)/133 South Pine Road
Brendale
2199
$6,300,000
$2,865
6
Sold
18 Moonbi Street
Brendale
2150
$5,000,000
$2,326
7
Sold
2 Maxwell Street
Brendale
2082
$7,030,000
$3,377
8
Sold
10 Maxwell Street
Brendale
1649
$3,700,000
$2,244
9
Sold
32 French Avenue
Brendale
1515
$3,810,000
$2,515
10
Sold
3/26-28 Strathwyn Street
Brendale
1400
$3,050,000
$2,179
11
Sold
17 Leonard Crescent
Brendale
1252
$2,200,000
$1,757
12
Sold
246 Leitchs Road
Brendale
1020
$2,500,000
$2,451
13
Sold
1&2/19 Terrence Road
Brendale
442
$925,000
$2,092
14
Sold
11/133 South Pine Road
Brendale
2,199
$6,300,000
$2,865
15
Sold
92/193-203 South Pine Road
Brendale
170
$510,000
$3000
Low stock availability is keeping prices inflated towards the end of 2023 FOR SALE
Under 500m
Over 500m
Total
5
5
10
1107
12215
13322
2
No. for Sale Total Area Available
FOR LEASE
2
Under 500m2 Over 500m2
Total
No. for Lease
23
24
47
Total Area Available
6490
34396
40886
*Estimated total market deals, reflecting all agencies
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How Construction Costs are impacting the
Brendale Industrial Property Market After several years of volatility, Australia’s construction sector as a whole seems to be entering a period of stabilization. Materials and
commodities
prices
in
some categories have fallen or flatlined, but the pipeline of Olympic infrastructure and fast tracking of affordable housing across the Norther Corridor means key ingredients for industrial buildings in this region remain stubbornly high and are unlikely to fall too far. The key ingredients we look at for commercial construction of tilt panel buildings in Brendale are
concrete,
steel,
CONCRETE
STEEL
Concrete is notoriously volatile due to its dependence on energy/ transport costs, raw material supply chains and competing projects. While the cost of aggregate materials, such as sand and gravel, has eased off on average across the nation, the infrastructure project pipeline, combined with the high cost of fuel in transportation, has driven consistent price hikes for Brendale builders.
We have actually seen some improvement in the price of rebar steel in the last quarter, though supply chain issues out of China, which produces more than half the world’s steel, has builders still encountering issues when sourcing high quality structural steel. The sheer volume of concrete being poured across SEQ and the Northern Corridor in the next ten years means price pressure on these two commodities will be a constant.
labour,
timber and what we call “critical components & connections”.
What does this mean for commercial property in Brendale? While this all sounds a bit scary, it is really encouraging news for owners or buyers of existing commercial property in Brendale. This increased construction cost, compounded by the chronic land supply issue, will insulate existing property values in the short term and provide almost certain capital growth in the medium term. The population flow coming into the Northern Corridor will compound the existing supply issue, easing concerns of any vacancy for most sectors of the market. While yields can be expected to soften a little in the coming year, rapid recent rent increases driven by high CPI has seen rent increases offset much of this impact. “Commercial property owners and investors with assets in Brendale should sleep a little sounder knowing nothing can be built cheaper than what existing buildings are selling for today and there is no magic land release that could even meet current demand, let alone the population that is coming to the Northern Corridor.” - Aaron Canavan
LABOUR
TIMBER
The employment-topopulation ratio remains at a record high of 64.5%. To this effect, there are more than a million additional employed people than there were before the pandemic. This is translating into a critical trade shortage in the industrial construction sector, as tilt panel builders compete with mines and major infrastructure employers for talent. Luckily, the Northern Corridor offers a level of housing affordability that attracts trade level employees.
Structural timber saw a 7.5% price drop in the second quarter of this year, but this follows almost three years of extreme rate rises of up to 26% year on year (2020-2021).
CRITICAL COMPONENTS & CONNECTIONS These are items we have identified that often represent more of a supply time constraint and holding cost issue than a direct material cost issue. Items such as electrical transformers, stormwater culverts and crossovers and service infrastructure connections (Unity Water, Energex, Telstra). In 2021 delays were inconvenient, but after twelve interest rate rises, these delays now have real impact on costs.
SUMMARY Our team have facilitated more than 50,000m2 of new building construction on new industrial estates across the Northern Corridor since COVID, with another 40,000m2 currently in design and quote stage. In this time we have seen the average pure construction price (not including land and approvals) for a 2,000m2 building increase from $850m2 to now be over $1,600m2.
Aaron Canavan Commercial Principal
Trevor Nelson-Jones 0407 736 521
Griffin Deakin 0422 587 143
Bianca Jensen-Woof 0434 053 164
0447 744 948 raywhitecommercialncg.com.au
Staci Tobin 0497 773 426
SELLING | LEASING | BUYING
Thinking of making a change? The team at RWC Northern Corridor Group are here to support your commercial property decisions, with up to date facts, market trends and Brendale expertise. Call one of the team today to discuss your needs.
Aaron Canavan Commercial Principal
Trevor Nelson-Jones 0407 736 521
Griffin Deakin 0422 587 143
Bianca Jensen-Woof Staci Tobin 0434 053 164 0497 773 426
0447 744 948
Unit 4, 257 Leitchs Road, Brendale, QLD 4500
raywhitecommercialncg.com